How To Be A Leader In A Challenging Real Estate Market
November 8, 2023
If you’re closely monitoring the real estate market, you’re likely aware of the impact of increasing interest rates and in some areas, a more challenging market. The market may be unpredictable, but there’s no need for alarm—this is not unfamiliar territory. Fluctuations like these are normal within the real estate landscape. There will always be buyers’ markets, sellers’ markets and balanced markets.
What the leaders in the real estate world must ask themselves is: how can we educate homebuyers, sellers, and even newer real estate agents unfamiliar with navigating these markets? In the face of real estate market uncertainty due to increasing interest rates, not to mention election uncertainty, how do we let our leadership ease the way back to confidence and understanding in the real estate market?
Know the market through analysis
To fully comprehend the market, it’s essential to establish a baseline for what we consider a balanced real estate market. This requires a thorough analysis of data, examining factors such as absorption rate, days on the market, list-to-sell ratio and new inventory, to name a few.
Base your understanding on facts and know how to communicate what is happening through words and visuals. Embrace this insight, and it will guide you and your clients with informed decisions moving forward.
Helping buyers and sellers understand the market
While studying the facts will improve your own understanding of the market, buyers and sellers may not be on the same page. With change comes uncertainty, and with uncertainty comes hesitation. There will be people who absolutely want to sell and have the means to sell – but this may not be the right time.
This is your opportunity to help both buyers and sellers navigate the market and restore their confidence. Explain the benefits, downsides and risks of what they want to do. Most importantly, show them the value of having a strong agent on their side, especially in these times. After all, there may be more properties on the market right now, so more competition for sellers and more opportunities for buyers who brave the market.
Knowing the strategies that you can and should prioritize in different situations is vital. One strategy is using ‘the small picture’. Knowing your business area and having an understanding of both the HOT areas and slower pockets within the local area, can help you work the market to your advantage.
Maintaining a good relationship with mortgage brokers is another important strategy. They understand the financial side of buying and selling better than anyone. Paying down interest rates on mortgages, seller takebacks, and other creative strategies can help buyers make the commitment and help sellers place a sold sign on their property and experience a smooth closing.