Recession-Proof Sales – The 6 D’s
“If Plan A fails, remember that you have 25 more letters.”– Chris Guillebeau
Last year we enjoyed the second-best real estate market in history. And going into 2022, most pundits projected another banner year with 5.9 million sales. In other words, it was supposed to be the fourth-best year ever. Today, mortgage interest rates are up roughly 200 basis points and pending sales are plummeting. The specter of inflation has everyone jumping at shadows. Most prognosticators are now asking whether or not we’ll reach 5 million home sales. Is the sky really falling?
None of that matters when it comes to your goals. Even in the depths of the Great Recession, every market contained enough opportunity for you to hit your goals. Some of today’s biggest real estate sales businesses got their start in 2009 and 2010. No matter how bad it gets, your local market will generate enough sales for you to have a record year. It’s not about the market, it’s about your response to it.
Cue Gary Keller, “Go get your unfair share!”
With that in mind, we have to focus on finding the truly motivated. Who wants to buy or sell in a shifting market? Wrong question. Instead, ask, “Who needs to buy or sell no matter the market?”
Last week, I interviewed Nikki Francis, a solo agent on pace to sell $25 million or more this year. She shared the advice of her mentor — no matter the market, there are always people motivated to buy or sell. She remembered them as “The 5 D’s.” I’ve taken the liberty of adding a sixth.
People die. Targeting them doesn’t make you an “ambulance chaser.” Individuals managing the estate of a loved one need expert advice and special care. Better you, a true professional, than some rando with a real estate license who wanders through their estate sale. Divorce attorneys rely on discrete real estate agents to handle these sensitive transactions. On a more cheerful note, expanding families need more space. My chiropractor has been talking about moving for years. They had their third child this year. It’s not a question of whether they will move in this market but rather how fast they can find a new home.
Empty nesters need to downsize. Seniors, too. Every year thousands of armed forces personnel get a “permanent change of station” (PCS) notice and have to deploy. Similarly, white-collar professionals are “deploying” to new jobs across the country. (I really tried to come up with a “D” for relocation….) And, investors love changing markets. They chase dividends and returns. If a property matches their criteria, they pounce.
Here’s the trick. What worked in 2021 is unlikely to work in 2022. New markets demand new messages. When you adjust your approach, these evergreen markets will become available to you and your business. And when you adapt, your goals become independent of any market conditions. Go get your unfair share!
One question to ponder in your thinking time: What evergreen markets have I been neglecting?
Make an Impact!