We all know real estate is a cyclical industry. According to the latest projections from the National Association of Realtors (NAR), the first three quarters of 2023 will see a substantial decline in existing home sales compared to a year ago, meaning leaner times ahead for the industry. But by the end of the year and into 2024, they are predicting a rebound in sales, meaning the good times will be back again before we know it.
The most successful companies know to make hay when the sun shines and save some of their pennies for a rainy day. And in fact, as the most successful real estate professionals today learned during the 2008 mortgage crisis, rainy days are often the best time to make investments in your future growth. Let’s look at why, so this current opportunity doesn’t go to waste.
All businesses, in all industries, rely on cash flow to keep the doors open and lights on. When there’s less cash coming in, you need to find strategic ways to keep too much cash from going out. This means taking a hard look at your processes and asking yourself, “What can we do better? Where are our biggest opportunities for cost optimization?”
This deeper, strategic thinking is a catalyst for change with long-term implications, the kind that sets businesses up for their next decade of success. One way to improve your cash flow is to leverage strategic investments in your tech stack to help your team do more with less, spend more time where they add value, and ultimately make a significant ROI. If you saved when sailing was smooth, you’ve likely got a comfortable cash cushion you can put to good use now.
The process of finding, researching, vetting, and eventually integrating new tech for your MLS, association, or brokerage takes a lot of time and effort. Sales cycles are long, and buying decisions are important (and big!).
For better or for worse, slower periods mean you have a lot more time on your hands than usual. Once you’ve taken a well-deserved break, spend that time wisely by looking for ways to optimize your workflows and find the kinds of solutions that could help you reach your goals once business picks back up again.
There are two ways to manage business change—top-down, when management imposes changes on their team, and bottom-up, when change comes from the rank and file. Slow times are a valuable opportunity to loop agents, admins, assistants, and others into the conversation: what brokerage benefits aren’t helping them anymore? What kinds of tools do they expect to need to weather the storm? If you initiate an honest conversation, you’ll get honest answers.
By looping your team into the discussion and giving them a seat at the table for making important investment decisions, you’ll increase buy-in and adoption, improve their sense of belonging and loyalty, and create a more cohesive team in the long run.
Nearly all consumers begin their buying or selling journey online, making your online presence more important than ever before. They also expect responsiveness that can only be achieved by onboarding new technology and moving to the cloud. The same is true of agents, who are more remote and flexible since the pandemic forced some major changes. Waiting much longer to make strategic technology investments might mean your business won’t make it through the next downturn unscathed.
Whether investing in your tech right now is just a faint idea or a top priority, the front and back office experts at Constellation1 can help you make the most of your investment with tips tailored to your business, your needs, and your growth goals.
Request a callback today to speak with a member of our team and assess the tech at your MLS, association, franchise, or brokerage.