In today’s marketplace, your ability to adapt, evaluate and refocus will be key to your success and that of your clients. The real estate market has experienced unprecedented activity over the past two years. Now, the market is shifting as rising mortgage rates, extraordinary home price growth, record low inventory and worries about an economic downturn impact homebuyer sentiment and activity.
I’ve outlined four tips for business leaders and agents to manage their real estate business during future market shifts.
Focus on your most urgent clients.
An uncertain market can be confusing for consumers as people wait on the sidelines for clearer signs that now is the right time to finally purchase. Providing thoughtful insight on timing and market conditions is vital.
Focus on the clients with the most urgent deadlines, such as those needing to move in time for the school year or to relocate for a new job. These clients require your utmost attention and will be your main source of revenue during market shifts, especially as you aid as an advisor during such a pivotal moment in their lives.
Whether you are a brokerage leader or an agent, it is most important to serve as an informed source to your clients, especially during a life-changing financial decision.
Be a data source.
Markets slow down because buyers and sellers need time to adjust to new pricing information; either sellers are coming to terms with lower valuations or buyers are waiting for pricing to stabilize.
Real estate professionals can help clients understand the market with real-time data and a view of the future. Your job as an agent is to provide clients with the necessary information that helps them feel confident in their decisions.
Stay up to date with the latest economic news, lending rates and others timely details that will certainly affect their transactions.
Evaluate your market.
Dramatic media headlines about the housing market’s highs and lows certainly turn heads, but those stories often miss the situation’s nuances. The housing market is stratified by price points and one price point might be stagnant while another is surging.
If you anticipate a lag in your current market, evaluate ways you might be able to move into busier markets, whether that’s neighboring geographic areas or a different price point in your market. It’s key to recognize that sometimes the high-end moves while the low-end does not. Become a true expert in your market, each has its own nuances despite national shifts.
Adjust your marketing materials.
If we are entering a buyer’s market, it’s time to start thinking like a seller. What kind of value can you add when demand softens? How are you going to help them identify the perfect buyer for their home? What type of value do you provide to minimize days on market?
Staging and light renovations can make a significant difference in a slower market. Ensure that your pitch materials are tailored to new market conditions and highlight specific solutions that you will provide.
Philip Lang is chief business officer of The Agency. You can reach him at firstname.lastname@example.org.