How A Cooling Market Can Be Good News for Your Marketing Campaign
by Don Hobbs, Hobbs/Herder Advertising
Concerned that the market won’t come back any time soon? Here’s an article from Don Hobbs with his usual good tips and comments that he published in the summer of 2004 that applies today. Reading this article, you would think he just finished it which should remind you that the market is cyclical, and this too shall pass.
Virtually no matter where you are located, the real estate market of the last six to nine months had been incredibly hot. From the Northeast to our own backyards here in Southern California, from Florida to the Pacific Northwest, homes almost everywhere were selling within a matter of days, or even hours in some cases. This extreme demand for homes has a greater effect than just allowing homes to sell quickly.
From a marketing perspective, homeowners in such a hot market may not judge an agent’s value the same way they would in a slower, more typical market. When a homeowner is 99 percent sure his house is going to sell, for top dollar and quickly, suddenly his perception becomes that his choice of real estate agent is not as important as during more typical times. After all, the house is going to sell no matter what, at least in the consumer’s mind. During this time, homeowners were capitalizing on those agents and companies who are willing to drastically slash commissions or even successfully selling as FSBOs. Deep discount agents saw tons of activity.
Bad News, Good News
The bad news regarding this odd situation is that with the devaluation of the real estate agent’s role, it became difficult to compete on terms of quality and demand a full commission. The result was a lessening of the effectiveness of personal marketing for the short term, especially for those agents trying to get marketing campaigns off the ground. The established agents had their base, but those forward-thinking agents who are new to personal marketing found themselves competing primarily on price at a rare time when price was the determining factor for most homeowners.
The good news is that the market has already cooled and is quickly regaining its equilibrium. The recent activities truly need to be viewed as an anomaly and you must not lose faith in your commitment to long-term business building. In fact, the more the market returns to normal, the more important your marketing efforts will become. As time-on-market increases, sellers have come to the conclusion that it really does matter who they list with. We’ve already received reports from many agents who have recently experienced a noticeable surge in new activity as quality once again becomes the issue.
Keep the Faith
It appears that we are on the verge of a major shift in the market. Here in Southern California, the L.A. Times recently chronicled how homeowners are now experiencing a much longer and more difficult time selling their homes than they expected based on the activity of the previous hot period. I’m hearing similar stories from all over the country.
This is not the time to get discouraged or be hard on yourself or your marketing plan. When analyzing your marketing plan, you almost need to take that six-to-nine-month period out of the equation. It is rare that we see market conditions that extreme, on either side of the ledger.
Navigating the Peaks and Valleys
In any market economy, variations in market conditions are to be expected. The key is to maintain your commitment to business building to prime yourself for success. Those agents who have been marketing themselves throughout this hot period may have not seen results in the short-term, but the long-term implications can be overwhelmingly positive. As the market stabilizes and homeowners return to normal decision-making based on quality and visibility, those agents will be primed for breakout success.
You’re Making Progress
In reality, what you’ve done throughout this hot period—if nothing else—is bought name recognition and perceived quality. This is an important first step toward building your business and developing a powerful personal marketing presence. The freaky market conditions that made it difficult to succeed are mostly now a distant memory. The key now is to put that behind you and to not waste the effort you’ve put in. Whether or not you have tangible rewards of it, I’m willing to bet that you have made significant progress during this odd period. The branding implications never changed.
You still received full branding value out of this time period, whether or not you saw business at levels that met your expectations.
Keep Your Chin Up
I know that events like these last six months can be frustrating. However, they are an inherent part of being in a business such as real estate. You cannot allow yourself to let market conditions derail your long-term business plan. From a philosophical standpoint, you need to accept the conditions and move on. Real estate will always have its ups and downs. With your marketing efforts and business building focus, you’ll always be poised to cash in to the maximum.
Whether this crazy market has been good to you or not, you need to realize that it’s history. Now it’s time to focus on your future, because it’s looking brighter every day. Ensure the end of ‘04 and into 2005 are the best times ever for you by keeping your faith and keeping your focus on building your business.
Copyright Don Hobbs. All rights reserved. Don Hobbs is cofounder of Hobbs/Herder, and is one of the most respected experts on personal marketing and effective business systems in real estate. He speaks to thousands of agents and brokers every year, consults with the industry’s top agents and companies, and contributes to several major industry publications including Realtor® Magazine and Broker Agent News. For more information, please visit www.HobbsHerder.com.