Hatched founder Adam Day has drawn on his experiences of running the online agent during the 2008 financial crisis to advise on how agents can navigate an expected property market slowdown.
Day, who sold Hatched to Connells in 2015 and is now international expansion leader UK for eXp, said agents should cut the fat as they enter the New Year market but shouldn’t reduce their marketing spend on things that work.
As sellers get more nervous about the market, Day suggests going with what the vendor wants even if you think the price should be lower.
Writing exclusively for Estate Agent Today, he said: “Take the instruction, but you need to manage expectations from day one. Keep in touch with your vendors on a weekly basis and when an offer comes in below their expectations, explain to them that if they don’t accept a slightly lower offer today, you just might be advising them to accept an even lower offer in six months’ time.
“Encourage offers from buyers, value every buyer and promote the fact you have buyers. If you’re the agent with buyers in a tough market, you’ll attract sellers.
“Lastly, work your chains. Will the person above reduce their price to allow an interested party below to secure the property, and get the chain complete? This isn’t doing anyone a disservice – this is helping people to move house.”
He said agents should resist the temptation to reduce marketing spend when times get tough.
Day added: “You still need to be putting yourself out there to have a chance of securing instructions, perhaps even more so in a more challenging market.
“This does go against our instincts but an agent’s bravery in this department will be rewarded.
“On the flipside, be sure to cut any fat out of your business. If you have any marketing strategies which are currently not working, they’ll likely not work in three, six, 12 months’ time.”
Above all else, he said agents must stay positive, adding: “No success happens without first believing you will be successful. Bring on 2023.”
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The “marketing spend" is automatically reduced when any agency creates trust and loyalty. When the people you seek to serve won't consider any other option. Marketing is only ever necessary when the audience doesnt know who you are.
If you dont tell them who you are, they will simply guess.
This is where soo many fall down.
Marketing spend is critical in a market downturn for many reasons. First, it helps businesses maintain and increase market share. In a competitive market, it can be difficult for an agent to stand out and attract customers, even if they are ‘trusted’.
By effectively promoting products and services, businesses can continue to generate revenue and sustain operations during a market downturn. Only agents that are dinosaurs will sit back and think because they sold a previous property that all is well.
Also brand awareness is key. Even if customers are not in a position to make a decision, they may still be interested in learning about what a business has to offer. By staying engaged with customers through marketing efforts, businesses can keep their brand top of mind and encourage future sales when the market improves.
By staying attuned to customer needs and preferences, agents can pivot their marketing strategies and focus on areas of the market that are more receptive to their offerings. This can help businesses remain competitive and position themselves for success in the future. 2023 is the year for marketing spend.
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