June 18, 2024


Mad about real estate

Real Estate Market – Survive and Beat the Competition in a Failing Market

Changing market trends need a marked different approach on the part of real estate agents. The market has been really brisk and hot for a very long time. Most of the real estate agents are not aware of the workings of a buyer’s market as it has been a predominantly seller’s market for quite some time. Homes had been selling like hot cakes off the shelf, frequently for more than they were worth. The buyers were the underdogs who had act swiftly in order to close a deal in their favor. Many a times the need for speed was so much that the basic criterion of inspecting the property was also overlooked sometimes, in order to make progress swiftly. As a rule there were multiple offers for the same property, and any kind of laxity could easily mean a bidding war among buyers.

The real estate crash has changed the parameters completely. The game is now being played with a completely different set of rules. The buyers are the kings now. They can take their own time now and still get the property they wanted at the price they quote. An agent can no longer expect to close deals swiftly and thus needs to adjust his game plan to suit the new rules.

Just a year ago the agents could close as many deals as they wanted without showing too many properties, but the rules have changed completely now. The agents need to understand the new ground rules and strategize accordingly.

Every agent needs to know this one fact clearly that they cannot expect to close deals as fast as they could earlier. In all probability a house will take a minimum of six months if not more to sell. It’s no longer a seller’s market, where it was a matter of days or even hours, for a house to be sold at a price the seller wanted. So the new rules are glaringly evident. The only way to combat this situation is excellent marketing so that the property is very visible in the market. The internet can be highly useful in this regard. A series of high resolution photographs can be used to give the feel of a virtual tour. Another trick could be that the buyer’s agent be offered better commissions, so that the property becomes a priority in their agenda.

Not just the agents but their clients, i.e. the sellers also need to realize that the ground rules have changed completely and are no longer in their favor. Many sellers are still of the opinion that they can ask for and get the prices that were prevalent a year ago. Thus they still carry unrealistic notions about the value of their properties. These sellers need to be gently broken in to the new ground rules and made to realize that the current market is not in their favor. They need to realize that it can take more than half a year to sell their property and then too they may not get the asked price. They need to think carefully and competitively price it in order to sell it fast.

It does not pay to stand still in shifting sands. You need to move along with the market if you hope to survive it with minimum damage. Be very clear in your mind that most of the real estate markets are now buyer markets and thus need to be handled accordingly. One needs to devote more time and energy in order to develop potential buyer leads in order to be able to sell the properties which are on the market. This in no way indicates that you cannot add new entrants to the list; it simply means that you need to work harder in order to get new buyers. A good source for buyer leads could be the rental market.

More and more first-time buyers are turning towards renting homes. You can convert them back to being buyers, if you can provide them enough information and convince them that buying a home is better than renting them the renters are a soft target as they are rarely willing renters. You could arrange for home ownership seminars which could be advertised through flyers or local newspapers.