Here are the facts.
During a normal market we see around 7.8% of homes trade, which equates to around 6.5 million sold units. Today we’ve seen the rate of existing homes sales slump to 4.2% of total homes, which equates to around 4 million units selling nationally. Against the backdrop of approximately 1.5 million licensed realtors in the US, we can quickly see why business is slower for a lot of great agents.
Yet in the wild world of real estate sales, experiencing slower periods in your business is par for the course so we must learn to adapt and adjust when it happens. However I realize most licensed realtors have only experienced a hot or healthy market, so this sudden slowdown (thank you 7% interest rates) has really caught the industry off guard.
But the most significant consequence of a down market isn't just about the ebb in sales…
For most realtors, a slowdown causes decision paralysis. Low energy. New levels of fear. Unprecedented uncertainty. Diminished confidence. All while trying to do more with less in a difficult climate. Honesty, navigating a slower market can be a lot…
Most agents say more leads. Or supplemental income. A few extra clients they didn’t expect. A better split. Maybe a second vacation.
My answer: Clarity.
Think about it. When you know precisely where you're headed (or want to go), you can maneuver through the market's unpredictability and come up with a plan that gets you to a desired outcome. You can calibrate and course correct with far less wonder because you know what you want and are leveraging reality to guide your strategy. To put it in simple terms, with clarity in your business you can identify problems far easier, implement effective solutions quicker, and greatly reduce wasted energy and resources along the way.
This - in a nutshell – is what a good coaching or mentorship facilitates. Clarity with a heavy side of strategy. And I’ve personally depended on good coaches through many difficult times in my real estate career which is why being on the teaching side is so satisfying.
When I was selling, every time I’ve felt lost in my business I could almost always trace it back to lack of “knowing” what I wanted, and/or not having a realistic plan to accomplish my goals.
So here’s what I tell my coaching clients and can hopefully help you..
Outline both your immediate and long-term goals. To do this ask yourself: "What outcomes do I authentically want to see in my business over the coming 12 months?" From there it’s all about aligning actions with ambitions. Because once you really know what you want, it’s a matter of creating a plan that meets the goal. Not the other way around.
However, clarity isn't just a mental exercise—it's about articulation. Put your goals into words.
For me, I’ve always had a written business plan and a “do doing done” board to go along with it. These plans were always accompanied with many check points for progress along the way. Learning from reality and remaining open-minded to recalibrate when something isn’t working is the idea here.
To cut to the chase.. Doing the same level of business in a market where sales are down by 1.5 million units you are going to need a crystal-clear plan and more strategic/smarter actions to go with it. Many great agents are struggling right now simply because they need better clarity and THEN a renewed commitment to a plan. They are lacking a strong “why” and therefore have a weak “how” in their business.
But here’s the good news.
In the end, a slowdown in the real estate market is an invitation to reevaluate and recalibrate what you want. Don't allow a market slump to obscure or define your business. Instead, treat it as a chance to rekindle your clarity and create better targets. Define your objectives, visualize success, and articulate your aspirations. So, take a moment today and ask yourself, "What real estate outcomes am I willing to work towards with the rest of the year?"
The answer could your new north star and get you moving in the right direction again! 🌟
This market cycle will pass and the people who get moving NOW are going to be disproportionally rewarded when it does.
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