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A market slowdown is a prime time to show clients the difference between a mediocre real estate broker and a professional. A slower pace provides more time for strategy, communication and intentional action for both you and your clients.
It also means very different things for buyers and sellers. Here is a breakdown of what you can do right now to show your professionalism to all clients.
Buyers
Energize and engage
It is counterintuitive, but sometimes a slower market means the momentum for a buyer lags, too. Think of ways to get your buyer excited about the process again. Consider a conversation with a lender about new or different products and scenarios that could bring attractive rates.
Also, help your buyer resist the temptation to write off properties that have sat on the market a little longer than normal. If there is a “deal” to be had in this market, something that has sat could be it.
Reconsider perfection
When a market is moving at warp speed, buyers forget their ultimate goals. Sit down with your buyer and reexamine the big picture to see if a different type of home or location may work for them.
Remind your buyers how a new home can improve their quality of life by living near family, closer to work, more outdoor space, etc. During a broader market slowdown, excellent quality of life is more important than ever.
Zero in on what matters, and think creatively about alternative homes that may work: maybe an end-unit townhome may work for a single-family homebuyer or a home in a slightly different neighborhood.
During this creative brainstorming process, you may also save your buyers significantly on the purchase price.
Speed up during a slowdown: Warren Buffett wisely says, “Be fearful when others are greedy, and greedy when others are fearful.” Help your buyers see a slower market as an opportunity!
Sellers
Price it right
It has been proven again and again that pricing to the market right off the bat is the best way to get top dollar for a property. A market slowdown is not the time for experimentation – overpriced properties will sit.
Pricing to the market upfront is the best way to draw in the most motivated buyers, which is the best way to ensure as many strong offers as possible.
Price adjustments draw in fresh eyes
If a property has not sold in three to four weeks, it is time to consider a price adjustment of 2 percent or more. At that rate, a new audience of buyers will consider the property, which is the ultimate goal of a price adjustment.
While sellers love receiving excessive amounts of offers, remind them that it only takes one buyer to sell a home.
Timing is everything: In many marketplaces across the country, September and October are very strong times to sell a home. But with the fluctuations in interest rates, it may make more sense to sell during the summer because rates may continue to go up.
Remember, inventory is still incredibly low, and there is not enough inventory to meet demand — and we never know what the future holds when it comes to inventory.
Also, think about things you can do to help propel your business forward during quieter market times. A great example is starting professional photography for your spring listings.
It is truly incredible the amount of efficiency my team has found during the spring market with this one strategy in place in the fall. Sellers are happy, the photos look better, and the whole process is faster and smoother – truly a win-win all around.
Julie Busby is the founder and president of Busby Group, and in the top 1 percent of Chicagoland brokers. Follow her on Facebook and LinkedIn.
