Many agents dread the beginning of a new year. Sure there is a hopeful anticipation of what could come, but also many of them find their business is a dead zone in the first quarter.
While this is more prevalent in the 4 season states, almost every agent has a time or period of the year that they find themselves facing no transactions and a budgeting nightmare. For rookie agents this almost makes logical sense, as they are still building their list and business, but for many veteran agents the problem often remains.
If you are of those veteran agents looking for a solution to the dead zone don’t fret, there are some simple steps you can take to set up your January. If you plan a little more intentionally throughout the year you can really start your year off well and never have a dead first quarter again.
First off you must identify your dead zone.
In most areas you will find that the winter months or the start of the year tend to be this time. It would be safe to assume for many agents this is due mainly to the holidays being a time when most people are focussed on family and celebration. That means many buyers aren't out looking as much and sellers aren't wanting to have tons of foot traffic through their holiday decorations. Agents themselves will often slow down and focus on business planning. Which is fine, but only if you've taken the needed actions to have upcoming closings on the books to start the year successful.
The strategies below however will still work if you don't fit into the slow January box. You'd be surprised at the number of areas that sell more actively during this time. Some agents will find late summer when families are taking more vacations are their slowest time. Those that wanted to move, did so after the end of the school year and perhaps less are wanting to move just before school days begin again. The truth is that you will know when your dead zone is by looking at your agent report and finding when the transactions aren't there.
The first strategy and solution is great because it helps you really master your area through the use of area patterns. Find subdivisions or areas that have high activity during the start of the year. Look at the timing of closings and which subareas in particular tend to close in the December through February time window. Once you find areas that close more often in that three month period work backwards to focus your reach out, cold calling and marketing efforts a few months before to find new sellers in that area. This focus will help you get a listing that will close early in the year and set up your start.
An easy way to visual this can be to make a simple bar chart of the months and number of closings that occurred during each. The example buying pattern graph below is made with the Focus 1st - Visual Home Values software, which allows you to do this in an automated fashion with a simple MLS export. You can see how clearly a bar graph illustrates the difference between activity in different areas.


One of the easiest and best ways to set up your January is to have a plan to work with buyers in the summer that are interested in new construction. Because you can plan how long it will take a house to be built (roughly) you are able to set in motion a closing for Q1 in Q2 or Q3. That will make your year start off great!
Obviously you shouldn't force buyers into new construction if they aren't interested in that or steer them that direction without showing other options, but many agents don't show new construction at times because of the long on ramp or because the client said they wanted to look at resale. Try and find a way to include a new construction area just as a potential and you'd be surprised that some buyers will 180 on their mindset and give you a great closing at the start of the year. Plan ahead and you can set up your Q1.
This solution is less about setting up your Q1 as it is about saving it.
If you haven't got something on the books to close and it's Jan 1st, then you need a kick start, momentum building, mass action start. The best way agents can do this is with an annual check in with their clients, called a real estate reviews meeting. Position this as a part of your long term service as their agent and you'll not only provide value buy find your previous home buyers often becoming home sellers.
The process to implement this is simple.
This simple process is something every agent should do and starts conversations that you want to be having with clients. For example your report can be as simple as one page.

This Area Sales Trend - 1 Page Review from the Visual Home Values Software is a good example of how you can deliver good information in a simple report that can be a great foundation to discuss what's been going on and what they hope to see in the future.
Each of these three strategies have their own power and ability to help you have early success every year, but the best option is to add all three to your toolbox. That way you never have a cold January!

In this blog you've seen examples of graphs and reports from the Visual Home Values Software made by Focus 1st. If you've never heard of it, it's specifically built for agents to use their MLS searches to create pricing and reviews reports that answer key questions and help agents better than any other CMA software. It was created by a former HP engineer almost 20 years ago and has been changing the industry's understanding of how to competitively price listings.

