How to successfully sell homes in the current context of uncertainty.

The real estate market in Portugal is facing extremely challenging times. The international context is not optimistic: the risk is heightened by the war in Ukraine and the conflict in the Middle East. Together with the political crisis caused by the resignation of António Costa as Prime Minister, which could weaken the national economy, external geopolitical factors could raise inflation again and thus increase interest rates and slow down economic development. With increasing uncertainty, real estate sales should continue to slow down in our country in 2024, which is not good news for real estate agents. Against this challenging backdrop, it is important that real estate professionals continue to focus on innovation and adapting business processes to new challenges, advises Massimo Forte, consultant, trainer, real estate specialist, in this article prepared for idealista/news.

While the situation with the uncertainty caused by the war in Ukraine - caused inflation, reduced purchasing power and encouraged mortgage interest rates to rise, nothing seemed likely to stop real estate sales in Portugal in 2022.

A total of 167900 residential properties were sold last year alone, the highest ever, according to the National Statistics Institute (INE). And home prices also rose 12.6% in 2022, the highest annual growth rate in available statistics.

In 2023, however, the effects of this context of rising interest rates and a loss of confidence in the real estate market began to emerge.

Housing sales fell 21% in the first quarter of the year compared to the same period and fell again by 23% in the second quarter. And housing prices have begun to show signs of stabilization in the past four months.

This context could even be worsened in 2024 if the recent war in the Middle East spills over into neighboring countries such as Iran.

This is because, as experts explained to idealista/news, there is a risk that the conflict will increase oil prices, which will increase inflation, house prices and mortgage costs, which directly affects home purchases. Besides external factors, Portugal is also in political crisis and "some structural measures that will affect real estate are changing peripherally", the expert notes, such as those that include the "Additional Housing" or the State Budget 2024 (OE2024).

"The trend towards easy, quick and permanent results will not be the reality of 2024, because the market will not allow it," warns Massimo Forte.

"With the decreasing number of transactions, especially in the residential segment, it becomes inevitable that the sector will shrink both in value and in the number of stores, and therefore in resources, which will look for alternatives to avoid a more difficult market cycle where only the most stress-resistant and motivated will be able to survive," added the real estate consultant.

Therefore, real estate agents face new challenges in this context of uncertainty, especially those professionals who "have not survived the cycle shift or have not built up a contingency fund in recent years [when the market was in good shape] to compensate for the slowdown in transactions already underway," the real estate specialist admits. That's why Massimo Forte believes it's time for real estate professionals to take up the challenges and start innovating in the way they do business and attract clients.

For real estate consultants who want to continue to succeed in this difficult situation, Massimo Forte offers several strategic axes developed from the teachings of American mentor Jess Lenuvel. The first piece of advice he gives to professionals is to "manage and adapt to the system, context and challenges." And, he warns, "Mistaken are those who think that innovation happens quickly and is the only important factor for staying in real estate. "

"In 2024, innovate by rethinking how you can adapt systems to strategies that have always produced results to create new ideas. Think first about the very basic and what needs to be done. Because in times of uncertainty, people, companies and organizations are looking for consistency, trust and intimacy; they are looking for someone who will not let them down and understands their business; they are looking for a professional who demonstrates steadfastness and motivation to tackle the purchase, sale or rental of their property," explains Massimo Forte.

To ensure that your personal brand as a real estate agent represents a trusted and reliable professional, strategic marketing and your communication should focus on three key vectors, the real estate specialist points out:

1. The importance of communication to attract or sell real estate

"Any communication that is not meaningful to your client will be rejected by them and their community," warns the expert, recommending that you carefully prepare a speech about the services you provide so that it is "interesting and meaningful" to those listening, whether they are sellers or buyers.

In addition, you must clearly communicate how you can solve the client's problem because, ultimately, they are coming to you and hiring you to solve a real estate transaction. "You have to commiserate a lot, constantly, and above all with your network of contacts, as these people are already familiar with you and perhaps those who have already been your client may continue to recommend or hire you," also points out the specialist.

"When you're networking, think about how you can bring something new or useful to your clients because that's what they will value.

Finally, it's important to define your position. "Don't panic to play a dangerous game with the price," warns Massimo Forte, explaining that as it is harder to sell real estate, "it won't matter to the client to pay more if the problem is solved." So "position yourself as a market specialist and avoid generalizing by going to all markets just to make more money. Such a stance will not get results and could cost you dearly, maybe even an insurmountable position that could undermine your brand and credibility," says the real estate coach.

2. Continuous real estate agent presence will remain key in 2024

"In recent years, we have learned how important it is to be visible - and highly visible - in any channel," says Massimo Forte.

"In order to be everywhere, you need to manage your time superbly and be able to prioritize, you need to be able to clearly say 'no' to your customer. Sift the bread from the chaff, qualify and better yet, pre-qualify. Although we think everything sells quickly, we will come to the conclusion that there is only one buyer for each house and there is not a house for all buyers," continues the specialist.

"The use of online platforms has given us the opportunity to become present everywhere, great for those who know how to communicate properly in every channel and at the same time guarantee their presence in reality," he adds, noting that this allows you to "make your life easier because you can get more and, above all, better contacts".

"Here it is important to realize that going everywhere just for the mere fact of being present does not make sense, especially when we consider the chaos and overload of content on social networks. If you are not relevant, you will be just another one making noise and you will be overlooked among the 50,000 real estate agents desperately seeking support to earn more," he also warns.

3. Building strong relationships with those looking to sell or buy a home

Massimo Forte says relationships with sellers and buyers are another key aspect to consider in the coming year. He believes that relationships are about connection, intimacy and market-specific work. "Relationships are won through attitude, authenticity, creativity, clarity and honesty," he explains.

"People are tired of agents who just open doors or sales reps who think their words and magic formulas can make things happen. A respected real estate agent is not just the one who has made the most money in the last 10 years. It's first and foremost someone who has helped sell better over the last 10 years. He is the one growing the relationship that will have a story to tell if he knows how to tell it well," also says the real estate coach.

"Relationships win through attitude, authenticity, creativity, clarity and honesty. "

This is why Massimo Forte advises real estate consultants to "work with your community, your circle of influence, your former clients, your allies; to awaken, maintain and explore relationships.",

"Don't ask, don't sell, learn how to communicate, create an atmosphere of relationship and interest where it happens naturally. People want to be listened to, people want to be understood, so don't focus on stereotypes and preconceived ideas that clients don't want to pay a commission, or want to cheat the real estate agent, or that the buyer is inherently unfaithful," he also recommends.