If the majority of our economists are correct, we can expect the next recession to hit by 2021.
Naturally, this has significant implications for real estate professionals and investors who rely on solid housing markets. The good news is that technological advancements (particularly in the field of big data) are providing smart solutions to help real estate professionals survive the next recession.
Here are 3 genius ways you can use technology to recession-proof your real estate business:
1. Find Your Recession-Friendly Target Market
To recession-proof your real estate business, you’ll want to adjust your target market by using tools like PropStream to focus on buyers and sellers that are most likely to complete a transaction in a slow market. This includes:
- Investors: Partnering with an investor will key you into good opportunities whether the market is hot or cold.
- Expired listings: When a listing expires without a successful sale, the property owners typically want to find a new agent who can get the house sold as quickly as possible. This is a lucrative opportunity for skilled agents — and investors who can make an all-cash offer on a fixer-upper — during a recession when listings sit on the market longer and are more likely to expire.
- Buyers looking for a good deal: With home prices low, a recession is the perfect time for new buyers to enter the market.
- Bank-owned properties (REO assets): Banks are eager to let go of foreclosures — and portfolios of properties at a discount — so they’re happy to have a good agent sell the properties for them.
- Vacant properties: Vacancies rise in a recession, making great opportunities for quick transactions.
Filtered, in-depth data will help you can find buyers and sellers in these specific categories and keep sales strong in a recession.
2. Get a Bigger Bang for Your Marketing Buck with Multimedia
When inventory starts to drop, many investors and agents panic and look for every way possible to cut their expenses. While a recession is a good time to be financially conservative, it’s also the time to boost your marketing efforts.
Think about this: when most people pull back on their marketing budgets, the ones who increase their marketing efforts are able to gain a higher market share through greater exposure and recognition.
Today’s tech tools are making marketing more cost-effective than ever. With PropStream you’re now able to run multimedia marketing campaigns from one simple platform. Manage direct mailers, email campaigns, automated voicemail messages, and even website landing pages all in one place, saving time and providing greater control and transparency.
3. Add a Recession-Proof Revenue Stream to Your Business
Even the best agents and investors can run into cash flow issues during a recession. When your paycheck is entirely tied to the real estate market, a slow market creates a serious income problem. That’s why savvy agents and investors are using tools like Propstream to add new revenue streams to their businesses.
Consider property tax appeal services. In a declining market, a high percentage of properties are over-valued for tax purposes. This creates a unique revenue opportunity for you. Find overvalued properties, reach out to the property owners to offer your services, then show the local taxing authorities how much the property is actually worth (typically through a quick and easy CMA).
With the right tools, it’s easy to find property tax values, owner contact information, and comparable properties for your CMA. And with all this data at your fingertips, you’ll be able to create a brand new revenue stream to recession-proof your real estate business.
Recessions are inevitable. But in the age of big tech, a recession is no longer a death sentence for real estate professionals. Take advantage of target market data, multimedia marketing platforms, and data-driven revenue streams to recession-proof your real estate business.