- April 22, 2024
- Reading time about 6 minutes
Cost plays a huge factor in making your business grow and thrive in the competitive market. That is why managing your budget is the most important part of running any business across various industry verticals. The real estate sector is no exception! There are many ins and outs and endless expenses associated with a real estate business- whether you are a homebuyer a broker or an agent. Keeping updated with effective cost-saving techniques and strategies will ensure that you don’t spend in excess and make your real estate business profitable in the long run.
Apart from building a top-notch real estate broker website, you can take advantage of cost-saving ways to cut expenses in your real estate business, which will be discussed in this blog. This will not only help your business keep track of your expenses but also avoid unnecessary costs.
All You Need to Know About NAR’s New Settlement
Recently, a new settlement was announced by the National Association of Realtors (NAR) which stated that the 6% commission, a standard in home purchase and sale transactions is gone after the realtors association agreed to seismic settlement. This settlement announced by NAR with a group of home sellers is expected to dramatically reduce the cost of buying and selling a home as they agreed to end landmark antitrust lawsuits by paying $418 million in damages and eliminating rules on commissions.
Representing more than a million real estate agents, the National Association of Realtors (NAR) has agreed to implement new rules.
i. The first rule prohibits agents’ compensation from being included in listings placed on Multiple Listing Services (MLS). However, critics argue that this move made brokers push more expensive properties on customers.
ii. Another new rule eliminates the requirement for brokers to subscribe to multiple listing services, many of which are owned by NAR subsidiaries, where homes are given wider exposure in the local market.
iii. Additionally, a new rule is buyers’ brokers are required to enter into written agreements with their buyers.
These changes will effectively transform the current home buying and selling business model, in which sellers pay both their broker and a buyer’s broker. Critics say that this model has artificially inflated housing prices. This settlement is going to be the biggest change in the housing market and is likely to lead to lower homebuying costs.
Ways to Cut Costs in Your Real Estate Business
1. Start Doing Yourself
Instead of getting overwhelmed with all the responsibilities in times of economic downturn, your business can save some cash by starting the work yourself search as by designing your own website. BidHom offers real estate professionals to launch their website free of cost. All you need to do is register on BidHom and list up to 5 properties on your website.
Additionally, you can make use of DIY content with the help of online tutorials and make use of right angles and perspective to get good videos and photos with catchy property details. Also, check the free DIY tools available in the market to make the best use of its features in your real estate website.
2. Go for Outsourcing
Another way is to consider outsourcing tasks of non-core activities like accounting, marketing, etc. instead of hiring a full-time team. This will not only help your business save time and effort allowing you to focus on doing business and save money.
3. Take Experts’ Help To Save Time
Connect with skilled specialists who will help you free up your time and allow you to assess your strengths keeping focus on things you are good at. You can make use of automation tools to automate social media & email marketing activities to boost efficiency. Apart from that, you can also get a ready-to-use website for free and get your content prepared accordingly.
4. Optimize Marketing Strategies
To make sure that your business reaches the right audience, it is a good idea to optimize your marketing and advertising strategies from time to time. To do so, you can set a weekly or monthly budget with proper planning on how much you will spend on marketing real estate campaigns or pay-per-click advertisements.
This will not only ensure that part of your marketing budget is kept intact for other important expenses but also help in fine-tuning your marketing efforts to attract new real estate leads.
5. Make Use of Technology
To make your real estate business future-ready, you must make use of the latest technologies available in the market like digital tools to streamline tasks and reduce manual labour costs, and use AI for AI-generated property descriptions and marketing content for better customer service responses and improved ad targeting.
Also, you can make use of virtual tours that will enable potential buyers to take the tour of properties rather than visiting them physically saving time and transportation expenses.
6. Review & Analyse Property Terms
If you have listed a property for rent, it is important to ensure that your tenants are aware of all the necessary payments to avoid any future mishaps. Make sure that they are well aware of any increase in base rent and incidentals.
Also, tenants must always try to negotiate with landlords for lower rent or better lease terms. They can also ask the landlords for shorter leases or flexible options.
7. Lower Maintenance Costs
Take time to monitor the maintenance areas and their costs to help you reduce the maintenance costs of the properties. Also, make sure that you make regular property checks to prevent huge repair bills as it is always better to spot little faults on time and fix them right away to avoid big expenses later.
Final Takeaways
After going through the blog, we know the essence of cutting unnecessary costs and focusing on only important matters to make your real estate business a grand success. However, it is important to note that you should not compromise on quality while considering cost-saving techniques. Even during times of slowdown or market turmoil, you must keep track of every penny spent but always draw to ensure that quality is not sacrificed. This is one of the main mistakes that most real estate agents and brokers often commit.
If you are planning to boost your real estate business presence at an affordable cost without compromising quality, connect with the experts of BidHom to build a customized real estate agent website and deliver value to your clients like never before. Connect with our team today to see how BidHom can help your business grow and thrive in the competitive market.
