realestate

15 Cost-Cutting Strategies for Real Estate Professionals and Brokers

Reviewing and cutting marketing and operational expenses is a good idea regardless of the housing market.

H
ousing market slowdowns are a common occurrence, but they can have a significant impact on real estate agents. Clients are also affected, with 80% of Americans believing the US is facing an affordable housing market crisis. When clients tighten their budgets, it can affect agents' bottom line. To mitigate this, here are 15 ways to cut costs during a market slowdown.

    Marketing and advertising

    1. Shift focus from paid ads to organic social media marketing. Use creative posts to connect with potential clients instead of serving paid ads.

    2. Utilize free design tools like Canva and MailChimp for simpler design work and email services.

    3. Consider pausing or reducing paid lead services, but continue using them if they're still sending converting leads.

    4. Go digital by replacing printed materials with QR codes that direct buyers to listings.

    Collaborate with other agents or vendors for co-hosted open houses or marketing efforts. This can double your exposure while saving advertising dollars and building relationships for future sales.

    Big-picture operational expenses

    1. Renegotiate your lease or go virtual if possible, as brokerages may offer fee relief during a market slowdown.

    2. Evaluate your subscriptions and cancel any unnecessary services.

    3. Manage your debt by looking into better rates on company credit cards and consolidating business loans.

    4. Review your tech services and downgrade to cheaper or free plans if you don't need all the features.

    Daily expenses

    1. Minimize small expenses like providing free coffee and snacks, throwing elaborate celebrations, and paying for daily food delivery.

    2. Consolidate showings by grouping appointments by geographic area or starting with virtual showings.

    3. Track your mileage to claim a tax deduction on business-related driving.

    4. Limit entertainment expenses like dining out and attending events.

    Professional development

    1. Register for free continuing education classes offered by state associations and larger brokerages.

    2. Attend local events like meet-and-greets, networking sessions, or festivals instead of expensive conferences.

    Grow your income streams

    1. Offer staging consults and help getting listings ready to go for sellers.

    2. Provide neighborhood tours and help finding local resources for buyers who are new to the area.

    3. Focus on developing relationships and serving clients to sustain your business during a market slowdown.

Real estate professionals and brokers discuss cost-cutting strategies in a conference setting.