Check out all of Inman’s end-of-year coverage here.
While there’s been considerable speculation around where the real estate market is headed in 2022, economists, market and industry experts agree that we’re likely to see things normalize to an extent next year. Prices growth will continue, albeit at a slower pace, inventory will continue to open up, and bidding wars will no longer be a given.
However, many external variables remain far from certain. As such, it becomes all the more important for brokers to focus on the elements of their business within their control in order to plan for the most productive year possible.
Here are three things every broker should consider when preparing for 2022.
Build reserves
Across the board, real estate professionals are most likely coming out of a record–breaking two years. While it can be all too easy to overspend, there is no better time to build reserves than when times are good.
When the market inevitably turns, be it in six months or six years, brokerages that have been prudent during times of prosperity will be prepared to maintain a strong position, even in a down market.
Invest in your listing business
Investing in your brokerage’s listing business will always pay dividends. A real estate professional or team that specializes in listings, as opposed to solely representing buyers, better understands the ins and outs of their market and can see shifts coming well in advance, and pivot their business accordingly.
By focusing on listings, real estate professionals can always control their business, making decisions based on facts and data rather than relying on the whims of buyers.
We know which consumers are most likely to sell their homes in 2022. Brokers should encourage and foster listing expertise amongst their teams by providing the training, tools, resources and mentorship to reach these sellers within their markets.
To that end, leave no lead unexplored. A leads manager can be an invaluable addition to any team and ensure that no business is left on the table.
Evoke a culture of leadership
Recruitment has never been more important. On the heels of two record years for the industry, it can be easy to overlook the value that true experts and specialists bring to the field. But make no mistake, it is invaluable — and you don’t want to wait for a down market to find out just how valuable.
In order to attract and retain these top producers, brokerage leadership must invest in the success of each agent, being involved, accessible and ready to step in and provide mentorship and advice at a moment’s notice. As a leader within your organization, a willingness to invest your time, network and resources with your team inspires a collaborative culture that percolates top to bottom.
We’ve all experienced first hand just how quickly the world around us can change overnight. Yes, real estate has been strong, but you don’t want to wait for a rainstorm to find out you have a leaky roof. The time to prepare is now.
Anthony Hitt is the CEO of Engel & Völkers Americas in New York City. Follow him on Twitter or Instagram.
