Industry expert, Lisa B, talks about the changing market and how you, as agents, can make the most of its recovery and upswing.
If you’ve been keeping your eye on recent weekend auction completion rates, you know the market seems to be in a much better position than it was at the start of 2019.
While some news outlets still warn us to be wary of the stability of improvements, and others take the opposite approach, telling us buyers may once again be priced out, all signs point to this as a time that could be very positive for agents, if approached with the right strategy.
Different market conditions require different approaches for the best results.
How do you know the market is changing?
If you go by the papers alone, it would be easy to think we are experiencing down conditions one week, then upswing the next.
Knowing the market conditions and trajectory with more certainty, however, means taking less notice of news outlets that just chase the headline, and learning to recognise the signs of a turning market. You need to be aware of what it looks like.
While reviewing market figures is helpful, the information you need to understand the state of the market is actually right in front of you — it is obvious in your day-to-day operations and activities.
To get started, let’s revisit some of the signs you should be very aware of — those that indicate a down market. Over the last few years, if your area experienced a decline, you will (should!) have noticed:
- Less telephone and email inquiries on properties for sale
- Fewer people through your open houses
- Fewer visits to your website and portals
- Days on market are longer
- Properties sell for less than you anticipated
- Owners expectations may be unrealistically high compared to what buyers are indicating
- Fewer sales occur
- Owners may not want to list as they want to wait for higher prices
- Stock levels can be higher
- The media is reporting doom and gloom
When you add up all of these signs — easily noticeable in your own practices, and many also visible in your competitors from the outside — you know you are experiencing a declining or down market.
The market will improve at a different pace in different areas; some towns and cities will strengthen faster, others will take more time. Regardless, like downturn, there will be clear indications of upswing — in your own office and those of competitors:
- You start to get good numbers through your open houses and loads of buyer inspections
- Your sales inquiries start to increase
- You have a higher number of hits on your website and portals
- There is more competition on properties — you may start to get multiple buyers on your listings
- Houses will sell for prices that you didn’t think were achievable
Once you see these signs consistently, you know the market is on the move.
Get ahead by capitalising early
If you have your finger on the pulse and you can recognise an upswing in the market early, you can capitalise on it before your competitors do and use it as an opportunity not just to improve your results after downturn, but to win market share.
So, how do you capitalise when other agents are still oblivious to the fact the market is changing?
One of the biggest challenges of a downturn is the mindsets of sellers. When the market is low, they are reluctant to list because they believe they will get a better result by waiting.
When an upswing begins, the first step you need to take is to change that mindset, and that means educating sellers.
Remember, your sellers are exposed to the same media you are, so if the papers are telling them ten different things about the state of the market and you’ve just started to come out of downturn, they may be confused, or more likely to believe the negative.
You need to be a thought-leader. Use your expert insights as an agents to not just tell sellers the market is on the up, but to prove it with the evidence you are seeing in your own office and the community.
Educate through emails, socials, videos, in local media and reach out by phone.
- Agency promotion
Your next step is reminding past and potential home owners that you are there, you’re ready and you are the best agency to assist them in selling their property.
This is pure awareness marketing to begin with — getting your name out there again, asserting your position, complementing that earlier market education with the skills you have to help them take advantage of the upswing.
Building upon awareness, you can then move along the marketing/sales funnel and start to generate leads and create intent to take action.
- Boost prospecting
You should always have a certain level of prospecting in place as a real estate salesperson and as a real estate office.
When you start to see the market changing in these ways, it’s really time to boost your prospecting.
As we all know, when you have properties for sale, and when there is a lot of activity, you can sell them! Do everything you can to secure listings. Don’t leave it until the others catch up and work out the market is changing…
Take action now!
Build momentum now!
Sew the seed for loads of listings and in a short time, loads of sales.
Get busy prospecting and marketing yourself.
EAC Industry Reporter
Real Estate Coach and Trainer