You Can Grow A Real Estate Business In A Down Market

Are your real estate agents struggling? Tough economic conditions led to a 20.6% drop in closed sales nationwide in 2023. Home sales remained slower in many real estate markets for the first half of 2024. Entire mortgage rates improve, it’s likely to stay that way. Except–the fewer sales didn’t stop real estate agents and brokers from growing their businesses. In some cases, the brokers increased their sales by 27.5%. It proves that you can grow a real estate business with the right growth mindset, consistency, and purpose-driven strategies even when the housing market is on a down cycle. In talking with the companies and teams that grew, we found similarities in what they did that led to their double-digit growth.

Stay Consistent

Every growth leader we spoke to mentioned consistency. Whatever strategy or routine you implement means nothing if it’s a one-and-done scenario. 

Take Arkansas’ top producer Tara Limbird, founder of Limbird Real Estate Group, who mentioned in a Reside Platform interview she decided to try radio advertising in 2013. “You can’t go on the radio one time and think everyone’s going to call you,” she said. “We didn’t know what the heck we were doing at first, but a lot of it was just being very consistent with what we do, the message we were providing, our logo and our look. It’s about being consistent with your message and branding across the board.”

People often want a “miracle” solution to driving more sales. It doesn’t exist. You don’t need a viral video or some earth-shattering marketing piece. Nor do you need the most expensive CRM or training program. 

Doing the same practices consistently over time eventually leads to results. These good habits–blocking time for prospecting, further training, evaluating performance, and client conversations–are what build a real estate agent’s business.  

Develop Client Relationships

In a down market, repeat business and referrals become even more critical. The National Association of Realtor’s 2023 Profile of Homebuyers and Sellers found that 46% used the same agent to sell their home as they did to buy their home. That’s a real opportunity to generate business with minimal effort. But it starts with two things:

• Nurture relationships with your home buyers that bring real value to the transaction. Good places to start are honing your active listening and communication skills. Have a process that keeps you organized through the transaction so you never miss a touchpoint. Set realistic timelines and expectations for the client and then deliver.
• Implement a robust client relationship management system to stay in touch with past clients. Actively build and manage your database. Find ways to stay top-of-mind so when they decide to sell, they choose you. Provide market updates and offer valuable information about their home and the market so they know you’re still active. 

It’s a strategy that Rima Rafeh of the Rafeh Group says will help her business in 2024 and beyond. In 2023, her team was up 20% despite the down market. “We plan on digging deeper in the database, going back after our past clients,” She said. “The idea is to go deep, not wide.”

Focus on Performance

Dustin Runyon’s team grew sales by 27.5% in the down market, and a large part of that was its culture of performance. It’s something the Team Owner at eXp finds common at growing companies. 

“It was crystal clear what it took to perform [at these brands], and so the energy went towards performance,” Runyon said. “They were talking about performance, and they were accountable to quality conversation and performance.”

That means instilling practices that look at metrics and having consistent conversations around the metrics. You can only move the needle towards business growth if you know what you are doing at every step of the client’s journey. Successful agents hone in on the practices that are working and keep doing more of those. 

Invest in Development

Staying still means your business stays still. Keeping your professional skills sharp and learning new ones is how you spot industry trends first and adapt your practices. It’s called gaining a competitive edge. But you can only learn if you’re willing to be adaptable and keep honing your skills.

It starts by nourishing an environment where the people are coachable and lean into contributing to the real estate team. This willingness to learn is one of the leading factors Runyon finds in growth mindset teams. “The more coachable people tend to be, the more contribution you tend to see. It’s an environment where people are wanting to help people because the people are open to help,” said Ruynon.

So you can provide all the coaching for agents you want, but if they’re not willing to listen and try the new strategies, it will be a wasted effort. Find the people who want to grow.

Be Your Own Lead Generator

Stop relying on other brands and third parties for your lead generation. It’s not just a matter of quality but of changing FCC regulations. Real estate brands must invest in a strong online presence and utilize digital strategies to reach a broad audience. The cost per lead may be higher, but so will the quality of the leads. That leads to better conversations with clients, better retention, and higher close rates. 

Again, it’s not about doing something fancy or groundbreaking to grow a real estate business. It’s about consistency in your business practices. Invest in your team’s performance, track that performance, and build a culture around business growth. That’s how real estate agents struggling to find sales stop the slide, grow through down markets, and accelerate in expanding ones.