Real Estate In Review: Strategies for Growth in a Downturn

Steve Osborn

Managing Director, Identity Marketing

Over the course of my career, I’ve seen the market decline three times. First during the Global Financial Crisis, then again during the COVID-19 pandemic, and it seems it’s time for round three.

In tougher economic times, many real estate agencies default to cutting back costs and conserving resources. While this is a short-term solution, it often leads to a reduction in output that would ultimately help make the agency stronger: recruitment, training, and marketing – all swept to the side in order to stay afloat.

However, investing during difficult periods can really help your business weather the storm and come out stronger in the long run. Keeping that in mind, I’ve put together a few strategies (ordered from cheapest to most expensive) that you can implement to help grow your business during the oncoming storm:

Set Your Investment as a Percentage of Profits

Most people set budgets annually. While that’s fine in a normal market, when you’re working within a downturn, it always proves advantageous to look at your budget month-to-month. This will give you greater flexibility and more decision-making power. This way, you’ll know exactly where the business is at and how much you can reinvest back into it.

Nurture Your Existing Database

This has been said so many times but it truly works. Nurture your existing database, even if their propensity to sell in the near future is low at the time, it’s important to maintain that relationship so that when they are next in the position to sell, they think of you first. It’s all about the long game and although this is equally important in a hot market (easily forgotten nonetheless), a downturn can help you ensure you’re really mastering this. This doesn’t need to be expensive either, in fact, it’s often more profitable to have agents focus on sales activities rather than marketing.

Focus on Organic Reach

When it comes to generating leads and awareness, focus on building organic reach on platforms like Instagram and TikTok, which don’t require a significant upfront or recurring investment. This, when combined with more traditional forms of lead generation gives you the chance to bring in more business from a variety of different mediums. And, if budget permits, you can also put some money into paid ads.

Invest in Your Brand Identity & Message

Investing in your brand’s image is a clear and proven way you can differentiate your business from the competition, establishing you as a leader in your industry. By creating a clear message and identity, you can stand out and attract new customers and retain existing ones, even in a difficult market. Sure, there may be fewer homes to sell, but someone is still going to win the business. Make sure your brand looks like it should be the first choice.

By implementing these strategies, real estate agencies can sustain or even grow their business during tough economic times and position themselves for long-term success. While it may be tempting to cut back on expenses during difficult periods, investing in your brand and marketing can help you differentiate yourself from the competition and establish a strong foundation for growth and success. We see time and time again that when the market goes hot again, those who have invested in branding and marketing are so far ahead of the pack.