What Do We Do If The Real Estate Market Starts To Shift?

5.3.22 what if the market starts to shift

A shift in the market may start to worry real estate agents. For one, it can affect their commission rates. Secondly, it can lead to their clients losing interest in a property.

In this episode, Abe and Greg examined what it really means when the market shifts. Abe defines “shift,” or correction, as a slight change of position, direction, or tendency. A shift shouldn’t be equated to a market “crash.”

A shift shouldn’t be a cause of concern in itself. In fact, a shift can even bring benefits to an agent.

So, what do we do if the real estate market starts to shift? Discover the current state of the real estate market and how agents should react if there’s a market shift.

"I'm starting to hear agents get concerned. I'm hearing agents worrying ... a shift could be a slight change, not a crash, but just with a slight change, agents get worried. --And I think when agents get worried, How they respond to that determines whether or not their personal business crashes. So it's not necessarily the shift ... it's the reaction to the shift that could have negative results to an individual agent. In the same shifting community or market on agent could be accelerating, and one agent could be falling backward. " Greg Harrelson.

Current State of the Real Estate Market

"A shift is a slight change in position, direction, or tendency." - Abe Safa.

Abe begins the discussion by distinguishing and defining appreciating and depreciating markets. When a particular market rises in value. The latter, market’s value falls.

When a market appreciates, the first market that’ll rise is single-family homes, as it’s more in demand. The second to rise will be condos on “golf courses” or those that are located in a hot area.

Then, the final wave of appreciation will affect those that are less in demand or desirable. Even if they’re not in demand, these properties will still be pushed by the market.

In light of the current state of the real estate market, Abe reports that there has been a noticeable and significant appreciation on oceanfront condominiums since April 15th. If this trend continues, then it’s a clear sign that a market shift is happening.

What If There Is a Market Shift?

An agent’s reaction to market shifts will determine the outcome of their business. So, if ever there’s a market shift, real estate agents should focus on the following things:

An opportunity to Set Yourself Apart

 

Mindset Shift

A mindset shift begins by not panicking or worrying. In fact, some agents/corporations attribute their success to when the market is down. This means that there’s actually an opportunity for grabs when the market is down. A shift in the market doesn’t necessarily mean that your business will go down, too.

Greg highlights some effects of a changing market:

  •     You gain market share in a declining market
  •     You fight to maintain market share in an increasing market.
  •     The majority of agents lose market share in a hot market since there are a lot of licensees that get into the business.

Bring Certainty to the Consumer

 

Future Pacing

 

Shift Conversations

“Approximately 6 million houses are sold every year.” - Abe

With knowledge and real data, you don’t have to worry about what the media presents. Having actual data is important since consumers, who are not experts in the field, need certainty. This means they need to rely on people like you who know the facts.

Greg presents two tips when talking to a client during market shifts.

  • Future pacing: Assure clients that you’re constantly monitoring the market.
  •     Blame the market:  Don’t tell them to change the price without data. In other words, act as an interpreter of the shift, then inform them that the price is suited for the current market shift. 
 

3 Things We Do If the Market Shifts

 

Increase Activities

This involves tracking your numbers, like conversions and ratios. After getting the number, increase your amount of activity/lead generation by 25%. This way, your business can survive despite market shifts.

You can’t control the real estate market or the economy. Don’t sit and fret about the market shifting. Instead, capitalize on what’s going to change and when it’ll change. By doing so, your real estate business will still grow.

Published on Jun 10, 2022

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Dirk Zeller

Dirk Zeller: The Market is Not Going to Crash!

People are concluding what will happen in today's real estate market after the Federal Reserve Bank of Dallas highlighted symptoms of a "brewing U.S. housing bubble". According to the internet, social media, blog articles, and other online platforms, we’re on the verge of a market crash. 

As professionals in the real estate business, do you feel that the market is crashing?

One Data Point Thinking Is Wrong

People conclude what is happening in the marketplace based on only one data point. They are comparing a specific data point where everything appears to be fine; buyer and seller appreciation is high. Today, people are afraid of a market crash because the current data isn't as good as that one data point before the pandemic. 

One Data Point Thinking is blocking the logic. It’s an emotional-based point of thinking. That specific emotion is none other than fear. Here is a gathering of market fears, along with an explanation of why these fears are wrong.

Fear of Market Correction

A real estate correction is a slight decrease in the market's value. We’re currently experiencing a market correction but we are far from a market crash.

We should not be afraid of a market correction. We need to highlight that as homeowners or real estate owners, you want to get the longest term possible or even make it a forever home or property. 

Highlight the following:

  • Length of intended ownership
  • Short-term vs long-term ownership
  • Be in the longest-term home possible

Fear We Have Hit The Peak or Are The Peak

We haven't yet seen the sign that we've arrived at the peak. So, even if today's market appreciation is low, there is a better possibility that it will rise next year or even in the next few months.

Fear if They List, Can They Find a Replacement?

Fear of not having a replacement property is one fear that many sellers are facing. Fear of not being able to find a replacement is haunting them, which is why they are delaying their listings. As a result, many individuals believe there are fewer listings in today's market, leading them to believe the market is crashing.

Fear of Market Overheating

When housing demand outpaces supply significantly and consistently, there is overheating. Yes, this may be a true scenario, but it is not taking place right now. The market chain is somewhat shifting, but it is far from overheating.

Fear of the Volatility in the Economy Due to Inflation

The unfortunate war in Ukraine may have an impact on inflation rates in all markets, not just real estate. One of the most significant challenges is the high cost of petroleum, which we generally consume regularly to meet with our clients, buyers, and sellers. This issue is widespread and is not causing the market to crash.

Fear of Interest Rates Rising

While we may be experiencing high-interest rates today, interest rate shifts are normal. And today's interest rates are relatively normal and nothing to be concerned about.

Bottom Line

Pulling back out of fear is a wrong decision in the end. If you put off or delay moving to a new home because of fear, it will lead to causing you more money 2 or 3 years from now. That's why it's critical to advise bio prospects, sellers, and buyers that relocating to a new home sooner rather than later will save them money and time. If they ignore the reality and make a bad decision out of fear, there will be significant financial penalties, particularly in terms of interest rates.

  • In reality, interest rates are up and closing in on 5%. Payments are up and buying power is down.
  • Sellers are more confident and assertive than they were last year. They'll be a handful, testing the boundaries of cost.
  • Payment will increase and the span between what their home is worth and what they want to buy is too great.

“You can avoid reality, but you cannot avoid the consequences of avoiding reality." - Ayn Rand

Coaching Greg Harrelson Real Estate Lead Generation Abe Safa

How To Monetize a Lead Funnel Through Simple Nurture

Greg Harrelson & Abe Safa discuss lead funnels and how to build and monetize them through simple nurture campaigns.

It can be challenging to turn a profit in today's competitive market, but it's not impossible with the right tools and techniques. This article will discuss one such tool: the lead funnel. We'll also show you how to nurture your leads through simple, practical methods to maximize your chances of making a sale.

What is a lead funnel?

 
 
 
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What is a Leaky Funnel?

 
 
 
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What Does Lead Funnel Mean?

The first step to monetizing your lead funnel is understanding it and how it works. A lead funnel is simply a process by which you generate leads and then nurture them until they're ready to purchase. It's an essential tool for any business, but it's significant for companies in highly competitive industries.

There are several ways to generate leads, but the most effective method is usually through online channels like your website or blog. Once you've developed a lead, you need to nurture it until it's ready to purchase.

Invest in Lead Generation Process

 
 
 
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The first and most crucial step to monetizing your lead funnel is to invest in a good lead generation process. This process should be designed to generate high-quality leads that are likely to convert into customers.

There are some different factors that you should consider when planning your lead generation process, but some of the most important include:

  • The clarity of your value proposition
  • The targeting of your marketing efforts
  • The quality of your lead capture forms
  • The effectiveness of your lead nurturing process

These factors are essential, but your efforts will be nothing if you can't get your leads to conversion. That's why it's so important to invest in a good lead generation process.

No Leads In; No Leads Out

The second step to monetizing your lead funnel is to make sure you generate a sufficient number of leads. This may seem like an obvious point, but it's one that's often overlooked. If you're not generating enough leads, then you won't have any to nurture and convert into customers.

There are many different ways to generate leads, but some of the most effective include:

  • Creating helpful and informative content
  • Optimizing your website for search engines
  • Advertising on relevant websites and platforms
  • Building a solid social media presence

Each of these methods can be effective, but you'll need to experiment to see which ones work best for your business.

How Do You Connect With a New Lead?

There are several ways to do this, and the method you choose should be based on what will work best for your specific business.

 
 
 
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Ask Questions

The best way to connect with a new lead is to ask them questions. This will help you know them better and discover more about their needs and wants.

You can ask questions through several channels, such as email, social media, or even in person if you meet them in person.

Listen

It's also essential that you listen to what your lead says. This will help you understand them better and find out more about their needs.

You can do this by reading their posts and comments or listening to them if you meet them.

Approve and Make Suggestions

Once you've connected with your lead, you must approve and make suggestions. This will help them see that you're interested in their needs and willing to help them.

You can do this by approving their comments and posts or by making suggestions on how they can improve their decision.

 
 
 
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Consider Your Leads Timeline

It's also important to consider your lead's timeline. This will help you understand when they're ready to buy and how you can best help them.

You can do this by looking at their previous purchases or asking them questions about their timeline.

 
 
 
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Finally, it's essential to offer value to your lead. This will help them see that you're interested in their needs and willing to help them.

You can do this by offering discounts or by providing helpful information.

By following these simple tips, you can easily connect with a new lead and help them see your business's value.

Real Geeks Your All-in-One Real Estate Sales Marketing Solution

Look no further than Real Geeks if you're looking for an all-in-one real estate sales marketing solution. We offer several different services to help you connect with your leads and convert them into customers. Contact us today to learn more about how we can help you reach your sales goals.

Coaching SEO Keeping It Real Real Estate Lead Generation IDX

The Power of SEO and Area Pages w/ Bob McCranie

 

 

The Power of SEO and Area Pages With Bob McCranie

 

Do you want more lead traffic to your website? In this latest episode of Keeping It Real, we explore the latest SEO best practices with Bob McCranie. Bob is the Broker Associate & Team Owner at Texas Pride Realty Group - HomeSmart Stars and an expert on utilizing SEO best practices and Area pages in his strategies.

Join host Frank Klesitz, CEO of Vyral Marketing, in breaking down the strategies and best practices behind a robust, high-conversion online presence in today's evolving digital landscape.

Bob on Why Real Geeks:

Bob on Organic VS Paid Advertising:

If you need some help optimizing your site, tips on how to turn up the volume on your current lead flow, insight into different strategies that have provided wins for agents across various markets, -- Check out Bob's Area Page lead generation strategy!

Bob on Optimizing Your Real Geek's IDX Website:

Bob on Attitude & SEO:

Bob on virtual companies & online work:

Top 3 Ways to Generate Lead Traffic & Boost Your Sale Funnels' Visibility in Your Market

Bob, a Brokerage Associate & Team Owner at Texas Pride Realty Group - HomeSmart Stars, shares the techniques and strategies he deploys to increase overall visibility to prospective clients in his market. 

According to Bob, he deploys three unique strategies to get leads. These strategies roughly refer to attraction marketing, SEO & optimizing his website based on popular search engine optimization guidelines, and demographic farming/cultivating his existing audience. 

Let's dive more into these strategies and find out how Bob executes them to get as many leads as possible.

Bob on Attraction Marketing:

Attraction Marketing

Attraction marketing, also called event marketing, is Bob's number one strategy. This strategy is based on the idea is that you don't have to run Ads all the time or cold calls but have people gravitate towards you because of who you are in the community. In the case of Bob, he's a well-known Broker Associate with long years in the industry. Newer agents can begin working on their community visibility by hosting events. 

Bob on the fun of event marketing:

You can draw people to you by hosting events, posting about them on social media, and generally being a social connector. It doesn't have to be a real estate event, but any event that serves as a lure to connect with people.

Bob on marketing his events:

Some of the events you can host include:

  • Kite Flying, BBQs, & Outdoor Events
  • Theater Events, Movie Nights, DriveIns, Concert in the Parks, etc. 
  • Recycling Events, Food Drives, Community Service Events, etc.

Bob on building collaborative events:

Starting successful community events takes consistency and patience. Make a schedule and stick to it when promoting your events. You can put up physical signs around your area. Put up flyers at your local coffee shops and gyms, and utilize social media ads. These have proven very effective no matter which markets you are located in. 

Bob on using creative postcards for marketing:

Putting in a constant effort will build attendance over time, and before you know it, you will have collected a community of regulars at your events that can also serve as a potential client base. Networking greatly helps get leads, even if not by a massive count at first.

Your Website

Bob on the importance of having your own IDX website: 

Bob on making IDX websites work for you:

The second and perhaps most important is internet marketing, specifically SEO. Your primary medium is your Reel Geeks website, which helps you draw in more organic leads. You still run Google ads, which brings you steady business.

However, you must have a website to lead your potential leads and provide them with the information they need.

Of course, just having a website is not enough – you need area pages. Bob stresses the importance of area pages and being specific about where you want your leads to go. He combines social media and SEO, focusing locally on his pages.

No one looks for real estate in the main city. People always look for the suburb or neighborhood they are looking into.

You create business pages for each suburb of the city you're covering. Each page must have a call to action that takes the reader to the actual area page on your website. It has to lead to the direct page for the city or suburb, not the homepage. It helps to pre-fine all searches as much as possible, directing leads where they want and giving them satisfaction.

 

Bob's Take on Ads & Real Leads

 

How Bob Determines His Area Pages

 

Building a Backlink Strategy

 

Backlinks & Area Pages

 

 

Demographic Farming

Bob's last strategy has to do with demographic farming, which is about cultivating or nurturing your lists.

Using Funny Postcards in Demographic Farming:

In this example, he developed his holiday list using postcards sent creatively and in good fun. For instance, he would send a holiday postcard in June or Valentine's Card with a humorous caption. Of the many postcards he sent, the most creative and successful is the tagline, "No, I don't want to buy your house." Bob doesn't want to buy your house, but he can sell it at a 30 to 40% better price than others in the market. The idea is to keep it fun, so people will look at the cards or mail and know what Bob has to offer.

Per Bob's experience, the strategies that can help you bring in leads are – attraction marketing/events marketing, SEO and area pages, and demographic farming. Add them to your process, and you can turn up your current lead flow to the highest volume.

 

Real Geeks' Real Estate Cost Per Lead Breakdown

Throughout our masterminds, exchanges with real estate industry professionals on The Keeping it Real podcast, and our every day, — a metric that everyone agrees is key to formulating your route to success as a real estate professional is the cost per lead metric.

Understanding your cost per lead metric will help you assess the amount of inventory in your market, understand your clients’ and prospective clients’ needs, assess where clients fall in their buying or selling cycle, and better understand your market. With your cost per lead metric, you can create a budget and a plan for any market or season you find yourself in.

Fill out the form below to receive an instant download of The Real Geek’s 2022 CPL Report that breaks down the cost per lead in the top 10 most prominent markets of the last year, the top 10 lowest cost-per-lead markets of the previous year, and the cost per lead breakdown of the 50 largest markets of the previous year.

Through our work managing Google and Facebook ad accounts for hundreds of real estate teams across the USA and Canada, Real Geeks can get a unique perspective of the market as a whole. Based on what we’ve seen, now is the best time in history to start investing in PPC leads.

Once you have assessed the cost per lead in your market, there are many ways to apply this metric to your strategy. Last week's Keeping it Real: How to Generate Seller Leads in Low Inventory Market w/ Lisa Chinatti & Jason Posnick, Lisa and Jason address the current issue of low inventory markets. As well as, break down the most effective approaches to 5 different lead sources and how to create a plan that meets your needs regardless of which market you are in.

 

 

In addition to constructing a strategy in response to low inventory markets and examining different lead sources, lead flow is also a factor to consider. If you have a small real estate team or have become overwhelmed with the number of incoming leads, you can deploy a texting assistant like Real Geek's Robin Geek AI to your workflow. Also, check out Keeping it Real's: How to Hire a Virtual Assistant to Cold Call Homeowners for Seller Leads w/JP Wells.

 

 

If you are getting started with building a workflow, check out: 4 Drip Campaigns You Can Activate Today and Get Huge Response, where Greg Harrelson & Abe Safa break down their favorite drip campaigns you can activate today using your Real Geeks workflow library, as well as a drip campaign of their own. 

There are plenty of ways to take your cost-per-lead metric and create a bulletproof lead workflow that works for you or your team. Check out our Keeping it Real: Bulletproof Real Estate Lead Follow-Up Plan w/ Brendan Bartic. We sat down with Brendan to discuss how his Denver real estate team sold 230 homes last year. He broke down his "bulletproof" real estate internet lead follow-up system.

 

 

If you’re spending money to generate online buyer and seller leads and are not happy with how many people respond to you or book an appointment, you’ll learn how to improve your results with our Keeping it Real: How to Convert More Online Buyer and Seller Leads to Appointments w/ Anna Krueger.