The global economy is in an unpredictable and fragile state at present and nobody can really guess what will happen next across different industries. Luckily with real estate, despite its fluctuations of major highs and major lows, it’s never going to completely crumble and it’s simply a case of knowing how to market your business when activity is low to ensure you don’t get caught in the net with those struggling to stay afloat.
The Real Estate Market in the US
Currently, the US real estate market is in pretty good shape compared with other property markets around the world. House prices continue to rise, although at a much slower rate than in early 2019. Q2 2019 saw rate increases drop as low as they had been back in the depths of the recession in Q3 2012 and had been on a steady incline since then.
Coronavirus meant the market came to a bit of a standstill while potential buyers and sellers paused any plans to make a move. However, experts predict that this rise in prices will continue over the next 12 months at a rate of about 2.2%. Property is estimated to be slightly more on the affordable side for buyers, yet the limited number of homes entering the market will be the main driver for prices continuing to rise.
While recovering from the pandemic, market activity levels have reached, and in some cases surpassed, January levels in 18 out of 50 states. This typically being caused by record low interest rates, a shortage of properties available on the market and an influx in demand, meaning buyers are facing a lot of competition and quick sales.
Why homes may not be selling
Some homes can stay on the market for months or even years without so much as a peep at an offer. Not all is lost however. There are ways you can help your sellers to increase their chances of success and start seeing some activity in a slow paced market.
The property price
Is the property priced too high? Ensure that fluctuations on the market over a period of time haven’t left this property in a position where it is now overpriced and overlooked by potential buyers. Usually, if there has been no interest in the first six weeks, it’s time to review the price before investing any more time or money into this listing.
The upkeep
As a real estate expert, it’s easy to see the potential in any property and look past any obstacles or challenging decor. However, many buyers are unable to look past clutter, dirt or poorly decorated rooms. The home does not need to be staged to look like a celeb home straight out of Cribs, but it is imperative that your sellers keep their homes clean and tidy, removing clutter when a potential buyer comes for a viewing. This is also essential for photography day when they really need to put their best foot forward. These images are the core of the listing and could make or break a sale. It’s up to you as the expert to advise your seller on this issue, as obvious as it may seem.
The seller
If the seller is doing the viewings themselves but you suspect that they are not quite showing the property in the right light or spending too much time speaking about themselves or personal interests, it may be time to suggest you do the viewings as the agent. As an expert, you know exactly how to sell a property, what to discuss and how to read the room.
The neighbors
Difficult neighbors are a tricky obstacle and not one you have much control over. However, it’s worth advising your seller to talk to them if there could be an issue. If the upkeep of the property is off-putting to potential buyers, perhaps offering to help clear any clutter or clean up in front of the home would be greatly welcomed and would benefit both parties. Alternatively, unpleasant behavior could be the issue, in which case a calm conversation could help to dissolve the issue, where safe to intervene.
What to do when buyers are not committing
As a real estate agent you’ve probably heard every reason under the sun about why a buyer doesn’t want to take the next step and make an offer. At this point, it’s all about having the communication skills and market knowledge that will persuade them to make a commitment. This is where your sales skills take center stage.
Why should I offer more than list price?
In a seller’s world, finding a ‘good deal’ is not always going to happen and it’s more about the interest rate that can be secured. By showing the connections you have in the industry and being able to offer the best interest rates on the market, you may just be able to secure a sale, even if met with reluctance at the start.
Love the house, hate the carpets.
In this instance, it’s all about the sweet talk. Of course buyers would, more often than not, love to walk into their new home, unpack and admire their surroundings. However, it doesn’t always work like that and you need to emphasize how their potential dream home at a great price should not be lost over simple things that can be changed. If they’re unable to name one thing they dislike that cannot be changed, you may manage to turn this one around pretty quickly.
I need to speak to my partner/parents/friend first.
This objection can easily be avoided by making sure you meet with all relevant parties from the very beginning of the process, whether that be discussing the kind of home they are looking to buy or viewing a property on the market. That way you can get the opinion of everyone who will be involved in the purchase and avoid any simple push backs like this one.
The US real estate market is likely to continue to rise for the foreseeable future and any difficulties in buying and selling is all about being able to manage different obstacles and objections to ensure you have squeezed the maximum potential out of every opportunity. Are there any objections you have faced that you’re not sure how to tackle? Join the discussion below.
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