Read this if you’re afraid of a shifting real estate market.
When you ask the question, “How do you feel about this shifting real estate market?”, the answers are nearly divided into two factions. Those who have been in the industry before 2018 and those who entered the market after that. The veterans who have weathered numerous up and down cycles know there is opportunity and how to find it. But, the agents who joined after 2018 have really only known a thriving market and will need to level up their resilience, negotiation, prospecting and nurturing skills. Brokers: take note since these agents will likely require additional training to succeed.
There will always be movers. Even though mortgage rates are increasing, and buyers who have locked into rates under 4% are less motivated than ever, life happens. We all know that life follows cycles as families grow and shrink, as jobs change and lifestyle needs change. These lifestyle changes are known as the Data D’s: divorce, death, diapers, diplomas, dumpsters and disasters. So, when the market creates unfavorable conditions, it’s more important than ever to understand who in your database has pending “D’s” or lifestyle changes in their lives. In addition to pending change as we cycle through natural seasons, a recent MoveBuddha study, showed that nearly 30% of movers do so for quality of life, a trend that is likely going to continue, as the great shift during Covid showcased the importance of home while the world was in lockdown.
So what advice do those seasoned agents who have thrived in market conditions of all kinds have to share? What are these professionals doing to ensure a healthy business pipeline in the next six months? We spoke to a few of the industry’s most respected agents and brokers to share this wisdom with those who have not been through a down cycle to help shift the mindset from fear to opportunity with practical tips to succeed with whatever is ahead.
Scott Lincicome and Laurie Weston Davis, Better Homes and Gardens, Lifestyle Property Partners, Pinehurst, NC
“Focus on lifestyle and the quality of life your community offers. Agents should not lead with details about the number of bedrooms and bathrooms, because consumers can find that information on their own. You can always tell the story of what it’s like to live in the area you serve–elevating local businesses, becoming an important part of the fabric of the community. Even when you don’t have listings to promote, you can always spotlight the town and its people. This will keep you front and center in the real estate conversation as a valuable source of information.”
Kevin Johnson, C21 Edge, Orlando, FL
“Mindset is more important than ever right now. We are doubling down on creating a positive environment for our agents to thrive. We dissect the headlines in our meetings, so we can dig into the reality of the situation and not just the click bait headlines that spell doom and gloom. We’re really focused on helping our agents discern the true market conditions so they can properly steward their clients into the best possible outcomes. This is the secret ingredient for agents, because happy people tend to make more money.
J D’Ann Melnick, Associate Broker/REALTOR at eXp Realty, Rockville, MD
“Diversify, diversify, diversify. As someone who worked through the last crash, I learned that there is always someone moving – what I didn’t do well initially when the market changed. I should have learned about foreclosures/short sales and rentals. As a Realtor we can follow market data and trends and see what the motivations are for moving. In my market right now, rents are increasing astronomically and the rental market is highly competitive. Even with high interest rates we are often able to show renters how they can save money monthly or at least build equity over time. For my buyers and sellers, I tell them that you just can’t time the market. You have to get to the “why” of a potential move and make a decision from there.”
As the entire industry takes a deep breath and finally has a moment to pause from the hectic pace of the last few years, this reset affords real estate professionals to review parts of their business that have been untended during the craze. Getting back to basic, sharpening important skills, and understanding who in their database is most likely to have upcoming lifestyle changes will be the edge needed to thrive in this season.