5 Ways to Land New Real Estate Clients in a Slow Market

Landing new real estate clients is never exactly easy, but landing them in a slow market can feel impossible! That is, unless you know where to find them and how to convert them.

In this post, we’re discussing the top 5 ways to gain new real estate clients in a slow market.

Btw, this post was originally published in 2019. This is the new and improved version!

5 Ways to Land New Real Estate Clients in a Slow Market

Let’s start with new buyer clients since they are generally the easiest clients to find in a slow market.

1. Turn Renters into Buyers

A down market is the perfect time for first-timers to get on the property ladder! Prices are lower-than-normal, interest rates are generally low, and there are down payment assistance programs to further incentivize buyers.

But there’s one big problem: buyers want to wait until the market hits bottom. They see through their news sources that market prices are falling, and they don’t want to buy a home, only to have it immediately lose value.

You and I know that it’s impossible to deliberately time the market perfectly. But you need to make buyers see this. Buyers need to understand that no one knows when the market has hit bottom until the market’s already on the rebound. The market bottom is only visible in hindsight. It can’t be predicted, so it truly doesn’t make sense to “wait for the market to bottom out.”

Target renters with marketing built around this expression from Realtor®, Shaun Rawls:

Don’t wait for headlines to say “Buy Now!” Headlines will only let you know when the best time to buy has passed.

Even better, create a Renter-to-Homeowner program for the apartment communities in your market. Using the process we outline in The Secret to Turning Renters into Buyers, you can consistently land new real estate clients. Simply adjust the marketing on that plan to include this benefits of buying in a down market without trying to time it perfectly.

2. Help Investors Find Killer Deals

Investor buyers are a gold mine in a down market. They already understand how the market works, so they aren’t waiting in an attempt to time the market perfectly. And they may be buying multiple properties during the recession.

To find investor clients, attend local real estate investor meetups and networking events, show up at foreclosure and tax lien/deed auctions, and get with your title rep to get the names of owners who hold multiple properties.

Then, serve these investors. Keep an eye on the market for the best investment properties. And keep your ear to the ground so you’re aware of new investment properties before they even hit the market. If you can find some off-market deals for your investor contacts, you’re building your reputation as the industry-insider agent.

3. Master Expireds

So far, we’ve focused on buyer clients. During a recession, buyers are more motivated; they have the incentive of getting a good deal on a home. But sellers only sell in a down market if they must. So they are harder to land than buyer clients.

Of course, sellers are still generally better business: you have more control over your time and income when you focus on sellers. And you can turn each listing into multiple buyer leads, giving you even more reason to focus your prospecting efforts on sellers.

So keep contacting the homeowners in your CRM, keep blogging for homeowners, and keep sending market reports to homeowners. But during a recession, you also want to pay extra attention to expireds.

If you’re brand new to the industry, expireds are the homeowners who had their home listed,  but the listing has recently expired without a successful sale. The beauty of expireds is that 1) you know they want to sell, 2) you can assume they’re considering a new agent since their last agent failed to sell the house, and 3) there are more expireds in a down market than in a solid market.

The downside to expireds is that they’re generally pretty upset about the market and their previous agent’s inability to get the house sold. They may have a negative view of all real estate agents as a result of their first agent.

Here’s a simple way to approach expireds:

The most important thing about landing new real estate clients from the expired section is to contact them asap. They will be getting lots of calls from agents, and you want to reach them before they are completely fed up with the calls.

If you have buyers looking for a house like the expired listing, use that as your in with the homeowner. Say something like:

I saw that your listing has expired, but I have a new buyer client looking at homes in your neighborhood, and I’m wondering if you’re still interested in selling.

[assuming they answer positively…]

That’s great news! Now I haven’t actually toured your home yet. Do you have 10-15 minutes today for me to come preview the property for my buyers?

Once you’re at the property with the seller, you can go into discovery mode, asking why they think the property didn’t sell, finding out how motivated they are at this point, and how they feel about their previous agent. Then you can share a success story about a seller just like them who you were able to help after their listing expired.

This approach is non-threatening, and it gives you a chance to get to know a bit about the seller and if this would be a viable listing for you.

4. Go REO!

If you remember the great recession, you know how many properties reverted back to the lien holders when homeowners weren’t able or willing to make their mortgage payments. These foreclosed properties are called “Real Estate Owned” (REO), and the banks usually don’t want these properties. So they need an agent to get them sold asap. Partner with a bank that has (or will have) a substantial REO portfolio, and you’ll be listing all recession long!

Banks hold notes because they enjoy the passive income. They do not want to invest the time and resources in maintaining the properties or renting them out. They want these properties gone. And they are knowledgeable about the market, so they are generally reasonable about listing prices.

Depending on your area, it can be a little tricky to get your foot in the door of the REO market. As with most of real estate, it’s largely about who you know. Work on building relationships with banks that hold a high volume of real estate notes (check with your title rep if you need help identifying these organizations).

By the way, these REO properties often make killer investment deals! Make sure you let all the investors in your CRM know about these properties asap. Before they even hit the market if at all possible!

5. Expand Your Business with Recession-Proof Real Estate Services

The year or two leading up to a recession (i.e. right now!) is the perfect time to recession-proof your real estate business! And one of the best ways to create a recession-proof business is to offer real estate services that perform better in a down market than in a solid market.

By expanding your services, you’re able to expand your sphere. You find new clients for your expanded service offerings, and before you know it, you’re their agent when they’re ready to buy or sell!

Property management is a perfect example. When homeowners are forced to take a short sale or a foreclosure, they generally can’t qualify to buy for several years afterward. So the market is flooded with more renters. And rents often increase while single-family home values fall, making it easier for owners of investment properties to hire a property manager.

You can offer full management (rent collection, handling maintenance requests, tenant turnover, etc) for a monthly fee equal to x% of the monthly rent (generally 10-15%, depending on your market). Or you can simply provide turnover services, helping absentee owners replace tenants between leases for a flat fee equal to x% of the first month’s rent (generally 50%, depending on your market). Either way, you’re making contact with homeowners that may sell one day and tenants that may buy someday. It just takes a little organization to stay on top of your portfolio, so make sure you invest in some inexpensive, but effective, property management software.

Another genius recession-proof real estate service is property tax appeals. They are so simple but so lucrative! Check out How to Make Money with Property Tax Appeals for a rundown of the process and the many benefits of offering this service. You’ll be front and center for all those homeowners, year-after-year, ready and waiting when they decide to sell!

Get Your Complete Recession-Proof Guide!

If you’re serious about growing your real estate business during a slow market, check out The Recession-Proof Real Estate Agent. This book offers a complete step-by-step guide to recession-proofing your real estate business.