Rising rates and deals falling out don’t have to slow you down when you go deeper with relationships, know your market, and surround yourself with the right environment.
Interest rates are changing, deals are falling out, and many people in this business are convinced the sky is falling. I see it differently: the market is great right now, and my team is still getting offers and showings.
Some of my strongest sales came when rates were at their absolute highest. Rather than absorbing everyone else’s doom and gloom, I want you to focus on three things that will help you grow your business in a market like this one.
1. Go deeper with relationships, not wider. When interest rates rise, your productivity has to rise with them. A market shift simply means you need to turn over different rocks, and the best place to look is the people you already know.
Start with the family, friends, and contacts in your sphere of influence who already know, like, and trust you. Then dig deep into how you can serve them.
The same principle applies to every part of your business, from your relationships and the people you work with to your past clients. Go deep, not wide.
2. Know your numbers and your market. A changing market creates opportunities for agents who know their numbers, know their market, and put themselves in front of more people. Getting in front of people can be as simple as a market update, and I recently did one with all of our clients.
Track days on market and the absorption rate, and look at how much more inventory there is compared to this time last year. Apply the same comparison whenever you study an area or complete a market evaluation.
Some clients choose an agent based on commission, but many more want someone they trust. You earn that trust by knowing the data, understanding what’s selling and what isn’t, and leading clients through their next steps.
“When interest rates rise, you have to raise your productivity.”
If that doesn’t feel comfortable yet, that’s okay. I remember being at that point myself, and the answer is to educate yourself on the market and every ZIP code you serve until you’ve learned it.
I once worked with a seller whose home had sat on the market for nine months with two different agents. She was frustrated and upset, and she asked me what to do. I gave her a game plan covering how we’d prep the home, price it, and market it.
I walked her through why the home had been priced too high and why its condition wasn’t where it needed to be. I also explained why we needed to adjust the price and why we’d market it to a particular audience based on the property. The home was under contract within seven days.
Another seller reached out in a very similar situation, with a home that had sat for a year with two different agents. When I explained what it would take, she told me she wasn’t willing to do it. I told her that was okay, but I couldn’t take her listing.
I knew what it would take to prepare that home, and without it, I’d be wasting her time and mine. She’d end up frustrated with me, and I’d be upset with myself, because we hadn’t done what it takes to actually sell it. My job is to market and sell, and getting clients where they want to be depends on knowing the data and the market well enough to lead them there.
3. Surround yourself with the right environment. At Justin Udy & Team, we hold team and group meetings where I walk through these same ideas daily. A contractor we’ve worked with for the last 10 years once came into the office spreading doom and gloom, and I told him to leave.
What he saw as a detriment, I saw as an opportunity, and I told him it really comes down to perspective. I’m not saying you should bury your head in the sand. It’s okay to be scared about what’s happening in the market, yet still live your life and do the things most other people never will.
There’s always a yin and a yang, and it’s both the beauty and sometimes the sadness of this business. When a market shift causes deals to fall out, that same shift sends other deals through. If somebody loses their job, their home may need to be sold. If somebody gets sick, they may have to move. There’s always a yin and a yang, and that’s both the beauty and sometimes the sadness of this business.
Put the right people, systems, and processes around you so your environment protects you and keeps you accountable. One broker paid me $2,500 a month because he knew I’d keep him accountable and keep his mind right. He closed nine transactions in one month of working with me, simply because I was feeding into what he already knew.
Whatever you decide, commit to the 20 minutes a day it takes to know your market, because that daily habit is what makes you an asset to your clients. Often, you already know what needs to change and just haven’t told the client yet. I believe this is one of the best markets to get a foothold and keep moving forward, because this is what happens every time the market changes.
If you’re looking for a better environment, I’d love to have you join our weekly group. Call me at 801-285-0521, email me at Justin@justinudy.com, or visit justinudy.com. I know you’re going to do very well.
