For more than two decades, Tim and Julie Harris have been leaders in the real estate industry, first as top producing agents, and now as sought-after business coaches. Their latest book, Harris Rules: Your No-BS Practical Step By Step Guide to Finally Become Rich and Free, is an international best seller. Learn more at timandjulieharris.com.
Help Your Agents Adapt to and Thrive in the Changing Market
To make sure your business survives and thrives through the current and coming market changes, preparing your agents and tracking progress on your goals should take priority.
August 31, 2022
To say that the real estate market is shifting is more than obvious. You know it. Buyers and sellers know it. It’s a daily topic of conversation in the industry, in the news and around the dinner table in many households.
Market changes—especially at the frequency and scale that we’ve seen in the last couple of years—can be a source of contention and fear, especially for those newer to the industry. Though the anxiety makes sense and the fear is warranted to some degree, now is the time for all real estate professionals to shift their focus and mindset to maximize the market’s current opportunities and benefits.
This is the perfect time for brokers and team leaders to help agents shift into high gear so all of you will not just survive but thrive in our shifting markets.
Price Listings Based Upon Sellers’ Motivations
Not all sellers are the same. Some sellers need to sell their homes within six months while others need to sell their homes within two weeks. Some sellers have come to you as formerly unsuccessful FSBO sellers and owners, while others have come to you as a referral from one of your past clients. Each seller has different motivations, which means your pricing and marketing strategies must reflect your specific seller's needs.
If your agents aren’t as well-versed in catering their pricing and marketing methodologies to the needs of their clients, now is the time to teach them how.
Make Sure You Are the Expert in Your Market
Also as important as being the expert is communicating your expertise. You must be able to explain your market’s facts—not the hype, conjecture or media headlines—to your clients. The more market knowledge you have, the more agile and malleable you become in the business, which is a huge benefit to your clients. It also allows you to help a wider variety of clients. The more market knowledge you convey to your sellers and buyers, the more they understand, join with you as a partner in your efforts and trust your pricing and marketing strategies.
Make sure the information is accessible and easily understood. Double-check your facts and information sources to ensure they are reliable. Have multiple ways of distributing the information to ensure your clients receive it. Make sure communication is open and professional.
Track Your ROI
You must fully understand the ratio of your time and effort versus the results you're getting. Skilled agents track their time and effort based on focused, proactive and repetitive strategies and techniques that produce tangible results. Skilled agents constantly massage, revise and adapt those strategies and techniques to best maximize results for their specific clients within their specific markets.
Ready Yourself to Seize New Opportunities
If you're not saving, or not saving enough, to invest in properties for your own or your clients' interests, now is the time to start and to maintain your savings efforts so you can seize a property opportunity when it arises. If you're not certified in “Express Offers” programs via various brokerages, upgrade your skills to be able to use those tools.
Stay Up-to-Date on Mortgage Qualification Changes
Unless you deal only with all-cash clients, some of your buyers will move from qualified to unqualified as the clock continues ticking and the Fed continues raising rates. There is a significant difference between a 2.7% mortgage rate that kicked off 2022 and the now-average rate between 5.97% and 6.2%. This means that you have to know what the rate hikes mean for your client’s budget. Rate increases can mean the difference of hundreds of dollars in monthly payments, which could price buyers out of their intended range.
Some of your clients may still be buyers if they know how to take advantage of different mortgage products, such as adjustable rate mortgages. This is where you can educate them or lead them in the direction of helpful information.
To weather the current market storm, you must generate more and a larger variety of prospects to meet or exceed your goals this year. Make sure your agents are as prepared as they can be and are using the services and tools you offer to them. If you’ve set goals in the past but never followed through with a plan, now is the time to devise a plan and follow through. Track your progress so you know exactly where you stand in terms of meeting your goals, and make sure you have the tools and resources needed to pivot when and where necessary.