How estate agents can thrive in a slower market
How has the market slowdown affected you as an agent? This article provides advice on maintaining stability.
Market slowdowns can test even the most experienced professionals, but financial preparation can help estate agents maintain stability and long-term success.
With interest rate hikes and market activity likely to adjust, many real estate professionals may face longer sales cycles and delayed commission payouts. While market conditions are beyond an agent’s control, financial preparation can make a significant difference in navigating these periods with confidence and stability.
“Every property cycle presents both challenges and opportunities. Agents who proactively manage their finances and maintain consistent business-building activities are often better positioned to weather slower periods and emerge stronger when market conditions improve,” says Adrian Goslett, CEO and regional director of REMAX Southern Africa.
Build a financial buffer
One of the most important steps agents can take is building a financial buffer. Agents should aim to maintain at least three months’ worth of personal expenses in reserve, with six months providing even greater security. It is also recommended to keep separate savings for tax obligations and a dedicated budget for ongoing marketing activities to ensure the business continues as usual during periods of reduced income.
Develop a strong referral network
Diversifying business relationships can also help reduce dependency risk. If an agent relies too heavily on a single transaction, lead source, or listing, it can leave them quite vulnerable when the market slows down.
“By developing a strong referral network, agents can create multiple streams of opportunity through relationships with past clients, property developers, bond originators, attorneys, landlords, and investors, all of whom can contribute to a more sustainable pipeline of business,” explains Goslett.
Prioritise maintaining your energy
Beyond financial planning, agents should also prioritise maintaining their energy. Slower markets can create emotional pressure and uncertainty, making it easy to become discouraged. However, success often comes from discipline and focusing on what is in one’s control. Daily prospecting calls, weekly reviews, accurate market data, better sales scripts, diligent follow-up, and realistic pricing guidance all contribute to stronger outcomes over time.
“Most importantly, agents should avoid equating challenging market conditions with personal performance. Market cycles affect all participants to varying degrees, and temporary slowdowns are a natural part of the industry” explains Goslett, “by focusing on financial management, relationship-building, and disciplined execution, agents can continue to build resilient businesses regardless of market conditions.”
In slower market conditions, the support of an established real estate brand becomes more valuable than ever. Agents who have access to the right tools, training, and network are often better positioned to navigate market challenges.
Issued by Kesia Abrahams
