Navigating the Seller's Market: Strategies for Agents
Across the country, housing markets are dealing with low inventory and high interest rates. While the rate of increase for home prices is slowing down, it’s still very much a seller’s market.
If your commissions are lagging in the current climate, it’s possible you’re not tailoring your strategy for a seller’s market. Here are a few tips to help you navigate the challenges and thrive.
For Getting a Signed Listing Agreement: Be at the Top of Your Game
In a seller’s market, many other agents are competing for new listing agreements, so your priorities should be quick, proactive communication and demonstration of your expertise.
Respond to sellers promptly and with helpful information. In fact, to guarantee that you’re both fast and good, you should take some time to compile resources and responses to common concerns for quick copy/paste. For example, have materials proposing your marketing plan ready to go.
For Getting the Best Offer for Sellers: Delay Showings
In a seller’s market, even the early offers will tend to be good for your clients, especially if the market’s hot. However, when sellers have a serious advantage, there’s always going to be a little bug in their ear saying, “Could we have done better?”
You can find a balance between selling quickly and selling at the best price by delaying any showings by five days or so to the first weekend after you list. This way, you have a good chance of getting multiple competing offers within a short window.
When Highlighting Properties for Buyers: Show Houses Firmly Within Budget
When acting as a buyer’s agent, it can be really tempting to focus on showing properties at the very top of your client’s budget window. Those are the properties that will make them fall in love.
This can work in your favor at other parts of the housing cycle. It can even be a good strategy in a buyer’s market when there’s a chance that you can negotiate sellers down.
But when you’re dealing with a seller’s market, all you’re doing is setting your buyers up for disappointment. When houses are going at or above asking, then the properties at the top of their window are likely out of their price range because they'll lose any bidding war.
Aim for properties closer to the middle of their range, where they have room to go up and are more likely to stand a fighting chance.
To Submit a Winning Bid: Keep Your Offer Clean and Lean
Cash offers or those above asking are always a safe bet in a seller’s market, but those aren’t your only strategies to make your buyer’s offer stand out above the rest.
A great strategy is to make your offer the one that’s easiest for the buyer. Waive any contingencies that your buyers can stand to part with. Avoid requesting concessions or quibbling over details in the home.
Another winning strategy is to show that your buyer is serious. This means having a mortgage preapproval (not just prequalification) ready to go. A sizeable down payment or above-average Earnest Money Deposit (EMD) are other possibilities.
An Evergreen Strategy: Always Be Learning
The best way to stay ahead as a real estate agent in any market is to make learning your craft a continual process.
As an online training provider with over 20 years of experience, we’re here to help. Whether you’re getting ready to earn your real estate license or looking for helpful courses that will count toward your continuing education credits, we offer state-approved real estate education all over the country.
Check our catalog now and enroll today!
