How to optimize your time during a market downturn
A market shift is an ideal time to reevaluate your communication and best practices to provide the best client service possible.
A market slowdown is an ideal time to demonstrate to clients the difference between a mediocre and a professional real estate broker. A slower pace affords you and your clients more time for strategy, communication, and deliberate action.
Additionally, it has very different implications for buyers and sellers. Here is an outline of what you can do immediately to demonstrate professionalism to all clients.
Buyers Energize and engage.
It is counterproductive, but sometimes a slower market causes a buyer's momentum to slow down. Consider ways to revamp your buyer's interest in the process. Consider discussing new or alternative products with a lender and scenarios that may result in attractive interest rates.
Assist your buyer in resisting the temptation to disregard properties that have been on the market longer than usual. If a "deal" exists in this market, it may be in something that has been sitting.
When a market moves at hypersonic speed, buyers lose sight of their ultimate objectives. Sit down with your buyer and reevaluate the big picture to determine if a different type of home or location would better suit their needs.
Remind your buyers how a new home can enhance their quality of life by putting them closer to family and work, providing more outdoor space, and so on. During a general market downturn, a superior quality of life is more essential than ever.
Focus on what matters and consider creatively alternative homes that may work, such as an end-unit townhome or a home in a slightly different neighborhood for single-family homebuyers.
During this creative process, you may be able to save your customers a substantial amount of money.
Warren Buffett wisely advises: "Be fearful when others are greedy, and greedy when others are fearful." Assist your buyers in viewing a sluggish market as an opportunity!
Price it properly
It has been repeatedly demonstrated that pricing a property competitively from the outset is the most effective method for obtaining top dollar. A market downturn is not the time for experimentation; overpriced properties will remain unsold.
Pricing according to the market upfront is the best way to attract the most motivated buyers, which is the best way to receive as many competitive bids as possible.
Price adjustments attract new attention.
If a property has not sold within three to four weeks, a price reduction of at least 2 percent should be considered. The ultimate goal of a price adjustment is to entice a new group of buyers to evaluate the property.
Although sellers enjoy receiving multiple offers, remind them it only takes one buyer to close a deal.
Timing is crucial: September and October are exceptionally robust months for home sales in many markets. However, given the volatility of interest rates, it may be sensible to sell during the summer, as rates may continue to rise.
Remember that inventory is still shallow, and there is not enough inventory to meet demand — and we cannot predict the future of inventory.