If you were one of many real estate professionals who enjoyed the industry “boom” of the last couple of years, then you’ve probably noticed that the market has gone somewhat stagnant as of late.
Unfortunately, media outlets love to focus on the doom and gloom of real estate—which can exacerbate the problem and cause sellers to feel reluctant about listing.
While it’s true that the market isn’t what it was a couple of years ago, there are still plenty of opportunities for success in today’s luxury real estate market.
The key is understanding common market trends and how to adapt to these as a professional, all of which is discussed in our recent episode of the Estate of Mind podcast, “How to Find Opportunities in a Changing Luxury Real Estate Market.”
Take the time to listen to the episode in-full at your leisure—and explore some key takeaways for navigating a slow market below.
Develop a Comprehensive Marketing Plan
In a slower market, it’s more important than ever to have a comprehensive marketing plan in place. Specifically, this plan should be one that targets high-net-worth individuals, luxury home buyers, and even investors.
As you build your marketing plan, be sure to include a mix of traditional marketing methods (such as print ads, direct mail, and open houses) as well as digital marketing methods.
These may include paid social media advertising, email marketing, and search engine optimization strategies to ensure that potential new clients are able to find you easily.
Price Your Property Properly
When the luxury real estate market was booming a couple of years ago, many real estate professionals were listing homes slightly below their actual fair market value in an effort to create a bidding war—and this was often an extremely effective strategy.
Unfortunately, in a slow market, you’re likely not going to have multiple competing offers on the same property.
More than ever, it’s important to make sure that any property you list is appropriately priced based on its location, comparable recent sales, and other factors.
Otherwise, there’s a good chance it will end up sitting on the market without any offers for many weeks (or even months) to come.
Highlight Your Property’s Unique Features
In a slower real estate market, there will be a large inventory and a very small segment of prospective home buyers. As a result, your listings need to “compete” with other listings for buyers’ attention. This is where knowing each of your property’s strengths and stand-out features (and understanding how to highlight them) can make all the difference.
Take the time to really get to know each of the properties you’re tasked with listing and choose one or two unique features (whether it be a wine cellar, a sustainable design, or even just a great location) that make those homes stand out.
Then, call out these features in your marketing materials so that prospective buyers will be more likely to reach out and schedule a showing.
Gone are the days of homes flying off the market the same day they’re listed (at least, for now). Even the most appealing properties that are fairly priced may still sit on the market for some time before the right buyer comes alone. This is where it pays to be patient. Rather than taking drastic measures (such as reducing the asking price prematurely), understand when it makes more sense to ride it out.
Likewise, be sure to communicate this with your client so they can better understand what to expect and what your rationale is as a real estate professional.
Sitting around and waiting for an offer can be stressful and frustrating for a client who doesn’t understand the intricacies of the local market, so sharing some of your knowledge and expertise can go a long way in reassuring them.
Focus on Branding
When you have a bit of a lull in your work, you can sit around and wish the market would pick back up or you can use this time as an opportunity to build and grow your business. If you find yourself with some downtime, take a step back and work on your own branding and marketing.
This can be a great time for you to redesign your website, put out some new marketing materials, or even earn an additional designation (like the CLHMS™ designation) that will benefit you when things pick back up.
Stay Successful, Even in a Slow Market
The luxury real estate market ebbs and flows. That’s simply the nature of the industry. Finding success as a luxury real estate professional means being able to ride the waves and always coming out on top. By putting these strategies into practice, you’ll be able to continue selling luxury real estate—even in a stagnant market.
From there, you’ll build trust and rapport with your clients, leading to more referrals that can help you further grow your business when the market inevitably picks back up again.