It’s a buyers’ market in 2023. To keep up, here are 6 top things real estate agents must do to succeed in 2023.
The last few years were seller’s markets. Since the Federal Reserve (Fed) raised interest rates to fight inflation mortgage rates skyrocketed forcing buyers to slow down. Face the new challenges in 2023 for new opportunities!
KEY TAKEAWAYS
- Our 6 top things real estate agents must do to succeed in 2023 are important.
- With the current housing market crisis, Realtors must learn to adapt.
- Understand how the crisis affects sellers, buyers, and investors.
- Learn how to cater to each of these three groups for a successful year.
- Figure out which agent niches will prosper in 2023.
- Learn how to create a solid business plan.
- Increase your lead generation strategies.
- Step up with more social media presence.
- Better usage of your sphere of influence guide.
6 Top Things Real Estate Agents Must Do To Succeed in 2023
As a real estate agent, you must adapt to become relevant and get new listings and buyers in 2023.
Follow our six steps to weather changing market conditions to gain new business.
How to Take Advantage of this New Market Trend?
Seeing what is developing in the new market of 2023 above, here are some tips to do to succeed in 2023.
1. Learn to Adapt
According to NAR, nationally “the median experience of real estate agents is 8 years, so most agents only worked when home prices were constantly growing”.
Thus, most agents are unaccustomed to a market shifting from sellers to a buyer.
Adapting to a new market means knowing how to benefit from this new opportunity. So, start learning and act on it.
Know What’s Changed in 2023
Sellers: The number of transactions decreased since 2022 because more sellers are keeping their homes and postponing selling. Why? Because too many sellers can’t sell since rising mortgage rates scared buyers away.
Buyers: The buyers can’t afford the homes they desire due to rising monthly mortgage payments. Their dream homes suddenly became too expensive. Thus, they are waiting for more affordable homes in the future.
Investors: Many of them will take advantage of the emerging buyer’s market because they have the cash to lower the down payment to offset rising mortgage rates. Housing investors expect rent to increase in 2023 giving them a higher ROI.
2. Find a Market Niche to Earn a Better Living
We identified three types of players in 2023:
- Sellers are afraid to list;
- Buyers feel, they can’t afford their dream home; and
- Investors seeking to take advantage of the emerging buyers’ market.
So, what types of niches will capitalize from these three?
First of all, new agents only working during the past 8 years never had to learn about seller motivations to sell homes. When buyers can’t afford a seller’s home the seller must offer incentives. Here are some tips:
Sellers Incentives
Seller-Financing
To help buyers who can’t afford to pay higher monthly mortgage rates and can’t pay a higher down payment to lower those payments.
When your seller acts as a bank to set up a seller financing system that lets the buyer avoid mortgages, banks, and private lenders. Your seller can charge a lower down payment and fewer monthly payments to help the buyer.
Tip: You will need to work with a real estate lawyer who can draw up the seller financing documents that protect the seller if the buyer defaults by repossessing the home.
Loan Assumption
Some mortgages allow another party to assume the mortgage payments and take title to the home when payments are completed.
Some lenders will allow an assumption if they approve the new buyer. Extra fees are charged along with due diligence of the buyer’s credit and ability to make payments.
Technically, this is a transfer of ownership after the completion of all payments rather than an outright sale. Yet, the seller can ask for more money than the mortgage balance to make a profit.
Tip: You must have an experienced real estate lawyer review the original mortgage documents to verify if an assumption is allowed.
What You Do: You can approach home sellers who pulled their listing to wait for a better market to offer a new listing advertising seller financing or mortgage assumption to entice buyers.
First-Time Buyers Mortgage Programs
Become a first-time buyer’s agent to educate first-timers about the many federal and state mortgage programs specifically for them.
Tip: Here are some articles to help first-time buyers with their financing options:
- “Financing Tips for First Time Home Buyers”;
- “First-Time Homebuyer Programs”;
- “4 Things First-Time Home Buyers Should Do”; and
- “Can You Use Your 401k Funds To Buy A Home?”.
Become an Investors Agent
Housing investors are always looking for good deals. Yet, most don’t have the time to search for gems amongst the many MLS listings or expired listings, or FSBOs unable to sell.
So, how do you become an investor’s agent?
Tip: We got you covered. Read our article explaining How to Become an Investors Agent.
3. Create a Solid Business Plan
If you don’t already have a strong Business Plan, now is the time to create one. This is an important tool for agents because it sets forth your business goals, tactics, and strategies. Consider it your road map to success in 2023.
Tip: Your business plan identifies your strengths and weaknesses, Then, it helps you combat your weaknesses by identifying activities to conquer them. It magnifies your strengths. Includes details like identifying your priorities, how you will generate leads and your marketing plan.
Bonus: Click here to access an outline of a business plan.
4. Step Up Your Lead Generation Strategy
You can’t get transactions and close deals without successfully generating leads. If your current lead generation strategy isn’t working try new ones.
Tip: You may feel that you tried them all. Yet, check out this article for 14 lead generation ideas.
Understand that lead generation takes time to bloom. Patience, consistency and non-stop efforts are required.
5. Crank Up Your Social Media Presence
Since homeowners and buyers are relying on social media and reviews to get informed you need to increase your presence.
Build your online reputation. Always post information bringing value to homeowners and buyers.
Tip: Use the following list for new ideas “10 Things to Post About on Social Media”.
Image Source – Re-published under the U.S. Copyright Fair Use Doctrine
Bonus: View this article to learn about: “29 Social Media Post Ideas for Real Estate Agents”.
6. Increase Your Sphere of Influence System
Experts claim that “it takes eight times more money, energy, and time to capture new clients than by generating business from your past clients and sphere of influence”.
Therefore, you must create a system to stay in touch with your existing relationships to generate lasting referrals. Otherwise, you will lose your past friends, clients, and family as they may forget you are their “go-to agent”.
Tip: Follow the suggestions in the “15 Reasons to Follow Up With Your Sphere” list:
Image Source – Re-published under the U.S. Copyright Fair Use Doctrine
Bonus: Read These Articles to Find a New Niche
Do you want to learn about agent niches to adapt to during our current housing market crisis?
Besides our article above about becoming an Investor’s Agent, we published two other articles explaining different niches agents can learn about:
“How Real Estate Agents Get Paid from Foreclosures”; and
“How To Become a Probate Real Estate Agent”.
Top Things Real Estate Agents Must Do To Succeed in 2023 – Conclusion
Perform all 6 top things real estate agents must do to succeed in 2023 to prosper. Here is a summary:
- Learn to adapt to the changing housing market by knowing how to benefit from this new opportunity. Buyers, sellers, and investors have different needs you can satisfy.
- Find a market niche to provide valuable services to these three groups;
- Create a business plan to expand your strengths and solve your weaknesses;
- Put extra effort into your lead generation activities;
- Follow our list of 10 topics to post on social media; and
- Follow our 15 ways to stay in touch with your sphere of influence.
Join the Best San Diego Real Estate Brokerage
Maybe changing brokerages to one offering better 100% Commission Plans and education will help you succeed in 2023?
Best in San Diego: Big Block Realty is recognized in 2022 as the best brokerage in San Diego for four straight years (2018 – 2021) by the LocalBest.com site.
Top 50 in the U.S.: Big Block Realty is recognized as the 49th Best Independent Real Estate Brokerage in the U.S. out of 106,000 real estate brokerages by
The Wall Street Journal partnering with Real Trends Rankings.
Join Us along with over 1,000 other San Diego areas and other parts of California Realtors as we offer complete transparent 100% Commission Plans with no hidden fees.
We also include Free:
Steven Rich, MBA – Guest Blogger
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