Recession-Proof Your Business | Nacogdoches Realtor, Stephanie Simmons

	BUSINESS TIPS 4 WAYS TO RECESSION-PROOF YOUR BUSINESS
	Forecasts point to a slower real estate market this year and next. A recent prediction from the National Association of Realtors says home sales will fall by 9% in 2022. An economic forecast from Fannie Mae predicts a “modest recession” in 2023. Economists emphasize we are not entering another 2008 scenario economically or in the housing market, but it does look like we won’t be seeing so many bidding wars and homes selling way above listing price. Although more sellers are expected to list, there should be fewer buyers, as rising mortgage rates have made homes less affordable. But you need not fret. A softer market is a great time to increase your market share. It is possible to come out of a down market in a better position than when you went in—if you plan accordingly. Here are four steps to take. Write down your business plan. The way the housing market has been going, who had the time to do any planning? But when things slow, to reach your goals, you need a written plan that defines those goals and specifies the steps you will take to achieve them. Make building a pipeline your #1 goal. Let’s face it: the market has been hot for so long that many of us have not needed to do much to strengthen our databases. Now is the time to double down on lead generation, marketing, and connecting with your spheres. Look at where your leads are coming from, and commit to your most effective channels. Then write down the key activities you’ll need to engage in to make those channels work harder for you. Lighten your load. Next, decide which pipeline-building activities you can automate or hand off. The most valuable thing you can do with your time is to connect with clients, prospects, and referral partners. Try to hand off the social posting and mailings work and automate your emails. The goal is to streamline the administrative tasks so you can spend more time engaged with clients. Simple jobs, such as keeping sellers informed about the status of their listing, are key to success in a slower market. Seek support. To succeed in a down market, you need to be creative, resourceful, and open to new ideas. It’s hard to do those things on your own. So, make an effort to build a support network for yourself—a group of like-minded agents whom you can turn to for advice and to share ideas, and who will support you when things get tough. During slower times a little collaboration can make a big difference. Follow these four steps and you’ll be able to approach this evolving market from a position of strength!

	TECHNOLOGY 7 KEY FEATURES OF A TRUE SMART HOME SYSTEM
	Smart home technology has been around for the past decade. However, many of these smart home products were just plug-and-play devices, such as smart speakers, that didn’t deliver the true, connected smart home experience that is available today. But thanks to the adoption of those plug-and-play devices, home buyers are now willing to pay for true smart home solutions that enhance their lifestyle. Here are the key features of smart home systems that are becoming as desirable as the latest countertops and luxury bath fixtures. Interoperability. Every part of a true smart home system needs to work well with the other parts of the system. The key is that every part, from lighting to HVAC to AV, is part of the same smart home ecosystem, or is from a third party that partners with that ecosystem. Interfaces. Devices in a smart home system can have a variety of interfaces. There could be a voice user interface—VUI—or a graphical user interface—GUI—such as buttons on a touchscreen. What’s important is that adjusting any part of the connected home should be easily understood by a variety of users. Or an interface might be customized to different people using it at different times, in different rooms. Automation. These capabilities make smart home living magical—shades opening and closing for cooling, heating, and privacy; hearing your favorite playlist on smart home speakers when you come home; having your indoor lighting adjust to the daylight outside. AI and Machine Learning Capabilities. Machine learning is the technology that enables devices to log your behavior and adjust their settings accordingly—smart thermostats are a popular example. AI (artificial intelligence) is the technology that allows devices to learn, think, and make predictions. This could be a smart thermostat that would see you put on a sweater and then raise the temperature a few degrees. With these kinds of capabilities, it’s good to reassure buyers that a connected home isn’t a spying robot—it’s only as “smart” as it has to be. Aesthetics. Smart home technology that’s visible should be pleasing to the eye—flush-mounted speakers, well-designed keypads, flat-panel TVs doubling as digital art displays, for example. A Hard-Wired Backbone. Many smart home installations can run on Wi-Fi from a single modem-router. Wi-Fi is fine for smartphone and laptop connectivity, and for smart home systems in smaller properties. In larger homes, however, installing a hard-wired backbone is a good idea. These are cables running to wireless access points that result in smoother connectivity. A hard-wired infrastructure also provides a backbone for future system upgrades and property expansions. An Integrator. This professional knows how to spec, install, and service robust, reliable smart home systems and how to keep them secure. Make sure the smart home system was done by an integrator who is available if needed in the future.

	MARKET TIP HELPING SELLERS DEAL WITH NEW MARKET REALITIES
	The housing market is shifting. Since the beginning of the year, mortgage rates have moved up. Home prices are still increasing just at a slower rate. These higher rates and prices have reduced the number of buyers, while sellers have more competition as more listings hit the market. In light of these developments, here are five things to tell sellers, according to real estate experts. There is a new reality in the housing market. Cite the above points to explain to sellers why the housing market is shifting to fewer buyers, more sellers, and slower price gains. Then tell them the consequences: they’re probably not going to see offers within a few days of listing, or multiple offers, or a sale price way over asking. This is not a disaster. There still is an inventory shortage, and there are plenty of buyers who can afford a home at the new interest rates—it just might take a little longer to make the sale. Price is critical. Now more than ever, it’s key to set the price correctly from the start. Homes are priced ahead of the market, so when price gains are slowing, the price must reflect that. Home preparation is key. Having less competition, buyers can now afford to be picky. That means they choose the nicer homes first. Declutter, repair, upgrade, and clean. Offer financial incentives only as a last resort. Be patient, as things are happening more slowly. Avoid being quick to give money away, but if you must, after a reasonable period, do a price reduction, offer to buy down the buyer’s interest rate or credits for closing costs. Even in a shifting market, the basics still hold. If the property looks great and is priced realistically from the start, it should sell without too much trouble.