The current market conditions pose unique challenges. Despite this, agents are finding ways to be successful. Some are focusing on higher-priced homes, which are still selling well; others are emphasizing their experience and expertise, and many are turning to technology to help them stay ahead of the curve. Whatever the strategy, agents who are able to adapt will be best positioned to succeed in this ever-changing market. The market for real estate is always in flux, but lately, it seems to have been more so than ever before. As a result, agents have to adjust their strategies on the fly to stay ahead of the competition, and those who succeed are doing so by thinking outside the box. Here, we'll take a look at how agents are succeeding in today's market.
Niche Targeting
The truth is, because of the internet's rise, targeting customers has never been easier. Nonetheless, many organizations have yet to embrace specialized marketing. A 'Niche' is the industry, topic, or area in which one markets. The trick here is to define the main niche before delving further to find sub-niches. But, of course, these sub-niches are only tiny portions of one's larger audience. For example, Rebecca Duncan of EXP Realty LLC noticed a specific pattern in her local market.
"Statistics show a surge in single female first-time home purchasers. I'm going to start focusing on my niche in order to work with them because most people overlook them."
— Rebecca Duncan, EXP Realty LLC
Niche marketing is all about focusing on a smaller demographic. These people have interests aligned with a company's products or services. Compared to mass marketing, it is not only casting a large net but is more specific about who they want to catch. They can work, but it depends on the company and the market.
Achieve Success Through Effective Communication
The good news is that, like a smile, communication has the power to change everything. Furthermore, with today's technical advantages, communication is accessible. Of course, everyone has a phone in their pocket, ready for any form of communication. Developing a personal connection with clients is key. This strategy will aid in market understanding.
"We pick up the phone and dial numbers. It is incredible what a personal connection can do."
— Niki Fuller, United Real Estate Team
Additionally, Brandon Brown of Baybrook Realty suggests that knowing what clients want helps. He believes that knowing a client's longer-term goals will help guide them. Agents will help make the best decision for their personal needs during the process. Brandon Brown is the owner and broker of BayBrook Realty in Orange County, California. He is a 44-year resident who thrives on serving people with no expectations.
"While it may not be the best time for everyone, agents should be listening and learning about their client's longer-term goals to help guide them in making the best decision for their personal needs."
— Brandon Brown, Baybrook Realty
Communication with clients is crucial to success as an agent. Not only before but during and after a transaction. A customer is making one of their life's most significant financial commitments. Of course, as an agent, you are in an excellent position to help. You have the experience of going through the property buying or selling process. So, give helpful information that clients will need. Never leave a client alone in the dark about any detail. Take the initiative. Make contact and provide updates.
Educate First-Time Home Buyers
For many people, buying a home for the first time is an intimidating process. First-time buyers are entering a significant financial deal that will affect their lives. It is common for buyers to have concerns that they do not know what to expect during the process. As a great agent, you may be a guiding force of information to get them beyond any stumbling blocks that may arise. This situation is where agents need to step up. Being a competent agent entails more than driving customers around to look at houses. Brown of BayBrook Realty believes that educating first-time homebuyers is his strategy. "This is their (customers') largest opportunity to buy in the last ten years," he says. For first-time home buyers, the previous decade has been challenging." A buyer's agent must be aware of any new inventory that enters the market. They must also communicate with their clients as soon as it becomes available. Putting clients in the best possible position is a must. Agents should ensure that clients receive the property they want without making mistakes. Your role as an agent remains to ensure that your buyer does not make a costly error. Even if the buyer is in a position to make a choice, agents must still conduct the necessary due diligence.
Ask for Seller Concessions
The Shafer Team at Coldwell Banker has been incredibly successful by using one strategy in particular. They don't just ask for price reductions when negotiating with sellers; instead, they look at what can be given away like concessions - which could lower the buyers' monthly payment!
"Instead of asking for price reductions in the negotiation with sellers, we ask for seller concessions to buy down the interest rate on the buyer's loan. This results in a lowering of their monthly payment greater than if that money was taken off the sales price!"
— The Shafer Team, Coldwell Banker
Look for Undervalued Properties
Brad Sides knows that it's important to always keep an eye on the markets, even if they're declining. That way, you can find areas with low demand and start buying properties for future income streams!
"I don't expect a steep decline in most markets but an adjustment where things will just level off. Rentals will be in higher demand, so areas where houses hold value but produce cash flow are the best to monitor right now."
— Brad Sides, Brad Sides Academy
Brad, a portfolio investor and trainer for one of the largest online real estate education companies in the world, expect rent rates to increase, as there will become more renters than buyers through this process. Brad is pursuing properties that others are too afraid or apprehensive about putting an offer on. The knowledge he has is taking these homes in the right direction and at a reasonable price point. Some labor and pricing are beginning to drop, like lumber, as new construction is taking a major hit.
Final Thoughts
The real estate market is always changing, and agents who are able to adapt will be best positioned to succeed. While the current market conditions pose unique challenges, there are still opportunities for agents to be successful. It's clear that in order to stay ahead in the real estate market, agents need to be constantly adapting their strategies. How agents are succeeding in today's market? By targeting niche markets, communicating effectively, and educating first-time buyers, agents can set themselves up for success. Additionally, it's important to always be on the lookout for undervalued properties; those may be the key to making a big profit down the road. What tactics are you using in your real estate business? Are they working? Let us know in the comments!
Have a comment, tip, or concern?
Thanks for reading Elite Informer! Here's more where that came from.