The takeaway: Bubbles burst! Don’t panic. Focus on what’s in your control — doubling down on marketing efforts and reaching out to your network.

Bubbles Almost Always Burst

Long-time agents have already experienced dramatic changes of the market tides over the course of their careers. 

It can be scary and hard to accept. When the getting has been good for so long, it starts to feel normal.

But in many markets across North America, the market conditions of the last 10 years haven’t been normal. They’ve been indicative of a bubble. And there’s one thing to know about bubbles: they almost always burst.

This dose of reality in 2022 has been difficult for many realtors to contend with. It’s one of the most important 2022 lessons for real estate agents, especially newer agents.

Relationships Are Everything

When markets are hot, a career as an agent is enticing; as a result, the playing field can become crowded with agents jockeying for business.

Competition for listings became fierce this year when supply declined in many areas. The agents who fare well in a supply-constricted market are those with strong relationships and robust networks.

The takeaway: When pickings are slim, it’s all about who you know. That’s why investing in your relationships with those in your network consistently — not just when business is in a lull — is so important. (And why it’s one of our recommended new years’ resolutions for real estate agents.)

Be Proactive

Real estate agents aren’t fortune tellers. But they do have access to research, statistics and experience that gives them an above-average understanding of the market.

This year (just like the last two years) was proof that agents who were able to be proactive against rapidly changing marketing conditions fared better than those who acted reactively.

Ramping up marketing efforts (and adjusting marketing messages), reaching out to past clients, thinking ahead when coming up with a list price or suggesting offer terms… these are all things agents should be doing when they start to sense a shift. 

The takeaway: Don’t wait around to see what will happen. If data and experience tells you that there are significant changes on the horizon, be proactive in your strategy to stay ahead of the curve.

Don’t Let Clients Get Caught Up

The market was moving at a frantic pace for much of the year in many areas.

Buyers were desperate to get in. Sellers were hungry for top dollar.

As a result, many buyers and sellers got caught up. They overextended themselves or got a little too hungry and now find themselves saddled with feelings of regret.

You don’t want to be the agent associated with those feelings. While your goal is to close a deal, your job is also to advise your client in a way that helps them avoid getting caught up — even if that means an offer not being accepted or a listing price being reduced.

The takeaway: The best real estate agents know how to balance deal-making with client counselling. Don’t be afraid to give your clients advice that may sound counterintuitive but in actual fact is considerate of their long-term well-being.

Lead With Humanity

The world loves to hate on real estate agents. 

There are so many myths and stereotypes about real estate agents. That they’re greedy, make a lot of money for very little work and that their services aren’t necessary.

Those beliefs often become more commonplace when a market is hot and realtors are doing well, and when a market is in a downturn and some realtors complain.

Real estate is a people business; real estate agents need to lead with humanity if they want to beat back against stereotypes and attract a steady stream of leads.

That means… 

• Actively listening to clients and striving to understand them
• Letting your personality shine
• Being upfront and honest, even when it’s difficult
• Practicing humility (being humble and unafraid to admit when you’re wrong or unsure)
• Showing gratitude
• Putting your client’s best interests first

The takeaway: Real estate clients want to work with successful agents, but they also want to work with agents who are real, kind people. Show them what the human side of real estate looks like.