How to Navigate a Confusing Real Estate Market
By Cole Editoral
As businesses all around the country are adjusting to and preparing for what the future may hold, you may find yourself looking at the real estate market and feeling confused. Don’t worry too much about that. You’re not the only one.
There is a wide variety of thoughts and opinions about how the market will react to this pandemic.
Some analysts believe that market will stall and hypothesize that sellers will be apprehensive to list their homes and buyers will not want to make large purchases during unpredictable times.
In fact, some markets have seen a 50% decrease in the market when compared to last year’s inventory1.
And yet, other markets are showing an increase not only in homes no the market, but in escrow openings and closings2.
In these areas, there has been as much as a 36% increase in new listings and a 15% increase in real estate transactions.
Still, confused? Again, don’t be.
What we are learning from these seemingly conflicting perspectives in what we need to follow the data. Every market, every area, every zip code has the potential to be radically different from its neighbor. Knowing your market, adapting to developing trends, and developing a business plan are all ways you can service your clients and your profits accordingly.
Know Your Market
Keep track of trends in your area. Your clients essentially have a local product to sell so make sure that you know your local market. Is there a flood of low-end buyers? Perhaps a trickle of high-end clients? Maybe a mixture of both?
You don’t have to be great with statistics to understand the climate. Dedicate some time every Monday or Friday morning to read about the trends in your area.
Make friends with your local mortgage companies and ask about their numbers from the previous week. Utilize those logistics options on your listing services to do the grunt work for you.
Keep an eye on the lending rates. Currently, the federal lending rates are historically low3 but what does that mean for someone who is interested in listing their house?
You often act as a real estate translator for your clients so be informed.
Lenders and escrow companies are usually keen to partner with real estate agents to secure a steady flow of clients. Use that opportunity to expand your resources and knowledge about the market and to develop relationships with people you can dialogue with and discuss local trends.
Maintaining awareness of the market helps keep you ready for the twists and turns that the market will inevitably throw your way.
Currently, people have been hesitant to go into the homes of strangers or to let strangers into their homes. For some agents, this may be present as a roadblock to the sale- but not for all, and if you adapt, not for you either.
More and more agents are offering virtual tours by making videos and posting them on their social media pages or by video calling their clients and walking them through the home remotely1.
This helps to dampen anxieties during unsure times which encourages clients to keep their home listed on the market until it sells and not to take it off prematurely in a state of panic.
Stay current with evolving technologies and use the real estate market to benefit your business. In climates such as this, larger firms will sometimes buy up smaller ones4. If this happens to you, adapt – don’t react. Use the backing of a larger firm to scratch that consulting itch you’ve always had or to finally dip your toes into property management.
Change does not have to be bad. And in a market that seems to always be evolving, let change work for you.
Finally, be prepared. Have a business plan – a serious business plan. Like, one that is written down.
Don’t know where to start? Cole Information’s Business Plan Health Check can help you put your thoughts to paper and encourage you to take a good look, hard look at your business plan.
When you have a goal in front of you, you might just take that extra step that will bring you closer to your picture of success.
Through all of this change and flux, it has become more obvious than ever there is no way to predict the future. However, if you know your market, are willing to adapt, and the time to prepare a business plan, you can be sure that you are ready for just about anything that may come your way.
Download the free Business Plan Health Check today
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