The Big Difference Between Those Who Tank & Those Who Survive in Down Markets
With questions about the future of the U.S. housing market being floated, it’s worth asking how the most experienced and successful handle marketing in tougher times.
Want more articles like this?
Create an account today to get BiggerPocket's best blog articles delivered to your inboxSign up for free
This isn’t another of those pessimistic posts predicting doom and gloom. In fact, from where I’m standing in my market and niche, things are very good. The outlook looks very good. But there have been analysts who say that home sales may be softening in places like San Francisco, Miami, and New York City. We all know that at some point, that is likely to happen. Maybe it is already happening, or maybe it won’t be for six months or six years. But it is especially important for those newer to real estate to look ahead and determine how they will continue to win when those things do start showing up.
So what’s the best way to keep up your real estate sales and leasing during leaner times?
Don’t Stop Marketing!
The one big difference between those that fade out at the slightest sound of distant thunder and those that make it through the worst recessions is marketing and activity. Sam Zell is famous for being the “grave dancer” who makes a killing while others are going bankrupt. Keller Williams only really saw its best growth come when it took visibility to the next level during some of the toughest years we’ve experienced. I can personally attest to ramping up marketing and activity as a way to break through. This past year during the winter months when others were slowing down, getting ready for the holidays, we ramped up our activity levels. The results were outstanding! It was less noisy.
In fact, not only should you be consistent, but this can be an incredibly opportune moment. These are moments that shake out the average players and those who aren’t committed and that make the big money for the few who stay. Look for opportunities to fill voids left by others, and dominate new niches and market share.
Be Smart With Your Budget
It is important to be wise with your marketing budget. So think targeted marketing, but know when to seize the moment to make a splash.
Keep those guerrilla marketing tactics ready in case things do get leaner than expected. Instead of pulling big lists in an area, pick a neighborhood and go and drive the spot to find those distressed and vacant properties. Get that laser-like focus in marketing.
If you aren’t having success in one channel, then adopt another. There’s direct mail, bandit signs, expired listings, showing up to eviction court dates and speaking with landlords who are evicting tenants, door knocking, online marketing, blogging, and more. There are so many avenues! So mix it up. But don’t overlook other investors as a source! Leverage them for deals if they are giving up, or partner on them with what’s working.
A few will always make it no matter what the market does. Those who stop marketing probably won’t.
What are you going to do? What tips and tactics helped you get though the last dip?
Leave your comments below!