January usually brings a healthy dose of hope & optimism about the year ahead.
And let’s face it, everyone wants to close more business than last year.
Whatever your goals are for 2020, if you are a local, metro New Orleans based real estate agent, the market is NOT going to hand them to you.
In other words, it won’t be easy.
The political uncertainty & slowdown in the global economy kept things in 2019 slow and steady from a purchase standpoint. That’s expected to continue into 2020.
Instead of more commentary, let’s look at the facts & projections from the Mortgage Bankers Association (MBA) for this year:
Key Projections for 2020:
- Unemployment: Currently 3.7%, expected to rise to 4.2%
- Federal Funds Rate: Currently 1.6%, expected to stay the same
- Interest Rates: Currently in the mid 3s, expected to stay the same or rise slightly
- Refinance Transactions: Expected to go DOWN 25%
- Purchase Transactions: Expected to go up 1.6%
There it is… the market for purchase transactions is expected to increase, but only by 1.6%.
Remember, refinances were up 70% from 2018 – 2019, so the vast majority of people who could refinance have done so already. It also means people are generally speaking, VERY happy in their current homes.
How to Beat 1.6% in 2020
OK – so the market’s not going to give you many freebies this year.
What’s left? Keep doing what you’ve been doing?
Here are 3 strategies we KNOW work for real estate professionals. If you follow them, you’re guaranteed to beat that 1.6%!
Tip #1 – Level Up Your Self Care Game
The best way to help yourself set new habits at work is to first create new, healthy habits in your personal life.
The reason we start with this and not a work-related item is that doing something different for the year requires more focus on a day to day basis. That focus can only come from you.
Self care suggestions from our team which improve focus include:
- Exercise (even if it’s gentle exercise)
- Taking frequent breaks throughout the day
- Getting regular massages
- Taking up a hobby
If you feel better & have more mental clarity, you’ll have a better chance of beating the 1.6%.
Tip #2 – Set Small Goals
It’s easy to set a big goal – something like “doing more business” or “increasing my transactions by 10%”.
But how do you hit that goal?
You do it day-by-day.
Our suggestion is to break your big goal into smaller goals. Quarterly goals are good for things like revenue, but weekly and daily goals are great for making sure you’re doing all the little things that add up to the big goals.
Need help setting goals? We’re happy to share some of our internal sales training which outlines exactly what needs to be done each day.
We also offer help in the area of business development. More on that next.
Tip #3 – Partner Up
There’s a tendency in the real estate business to shop around when it comes to vendors & lending companies.
And while it’s smart to keep an eye on pricing, fees, & service levels to make sure your clients are getting the best available, there are many benefits to working more closely with a mortgage lender.
Our team offers in-depth training & business development support to local real estate agents with the goal of:
- Helping agents become more knowledgeable about the lending products available to borrowers
- Helping agents evaluate potential buyers more quickly
- Helping agents attract more clients through better marketing & sales efforts
- Closing more of the potential transactions available to agents
This type of collaboration leads to the kind of growth that beats 1.6% per year. You can’t do that by “shopping around”.
If you’re ready to have a banner year no matter what the market does, please contact us today!