A correcting market is one the best times to get into an area as a new agent. That’s because this is when people shift. Normally, during regular times, people stay loyal to their past agent. They feel obligated to stay with who they have. They would feel bad switching to anyone new. But when the market makes huge shifts, people start to shift. When you are prospecting for new clients, you can work a correcting market to your advantage in the game. 

Why do people shift during a correcting market?

During a correcting market, people are often forced to downsize or make moves they want to keep private. Often, they'd rather make these sensitive moves with a new agent who doesn't have any personal connection to them.  They want to hide their financial situation from people who know them. You must share a lot of details with your agent when you buy or sell your home. That’s what makes a correcting market a perfect time to farm a new target area and introduce yourself as a fresh agent. 

Another way to explain it is that homeowners have a lot of pride. When market conditions change, they don’t want to lose this pride by losing their home. When market conditions change and it affects their home, the average person realizes it’s time to move. When everything starts going up, things add up and compound. We are seeing this correcting market condition at the moment (in 2022). When costs add up,  the average person gets out quickly. They downsize and do what they must do. But when they move, they keep their exact financials private from anyone who knows them. They usually work with a new agent. 

Successful” people tend to hold onto their homes longer during these markets. They're too scared and proud to show other people that they can’t keep up with rising costs. They hold on during a correcting market, even when their costs are climbing. But these costs can hike quickly in a severe market. When these higher end homeowners decide to make a move, it’s even more urgent. By that time, they are also  feeling very sensitive.  Every time I do a foreclosure, it's for a lawyer, or a doctor, or someone “successful.” It's almost never for an average family. Their pride keeps them holding on too long. When they admit it’s time to sell, they almost never call their long-time agent.

It may not be right, but people in communities talk. And they don’t want to risk people finding out how desperate they were when they sold. Homeowners who are struggling financially do not like to share their sensitive situation with people who know them and they usually want to hire an agent outside of their current circle. This makes it a perfect time to approach them as an agent.

I have seen people go to great lengths to cover up their financial struggles. I have seen people play out a complete long game strategy during a move, to keep their dignity and protect their privacy. This is often where I have come in as a new agent. They keep their decisions tight and roll everything out strategically with stories in place about reasons for the move. When it comes to money and major assets, people are so worried about what people think. 

As an agent, you can work all of this to your advantage. During a correcting market, people are primed to take you on as their new agent. It’s the perfect time to plan new farming zones and make a door knocking plan. 

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