I think the most important facet in coping in this market is education. It is crucial that both our buyers & sellers know what is happening in their respective market places by being shown facts and not just allowing our current media onslaught to be left to educate them.
Sellers need to see the “why” when we tell them what we think their house may be worth. The why can be shown by providing statistics of recent comparable sales, current competition in the market place, recent market trends (i.e medians), and the absorption rate in their market (i.e. how many houses are on the market at present divided by the number that have sold in the last 3-6 months.)
It is not simply enough now to say here’s what’s sold and here’s what I think.
In a changing and challenging market we need to step up as professionals and illustrate that we really do know our chosen field inside & out.
I provide all my appraisals with detailed statistics, and the power of showing them what is happening vs telling them, is incredible.
The flip side of this is that they are more likely to list at a more realistic and saleable price if they understand the why. As a result you have a more desirable listing compared to others for sale in the area. This in turn generates inquiry (sales & listings).
Another advantage of knowing these statistics, is that you can make the information available to the purchaser also. If you have a well priced listing, and have the evidenceto back it up, and can show them and not tell them, they are less likely to come in at such a low level with an offer.
We, as salespeople, need to take more responsibility for our own understanding and knowledge of the market and be readily able to demonstrate this to both our sellers and buyers, as this will lead to people wanting to do business with us because they are confident in us and in the market as a result.
I recently e-mailed a purchaser a copy of a market analysis I did for an ownership unit I have for sale. The reply was incredible. She said that she now felt confident to go and purchase in the market place because I had shown her what value was and what it wasn’t. She did not buy my unit, but was extremely thankful for the time I had taken to educate her.
Just a thought!
Happy selling, and for all of potential buyers and sellers out there, don’t be afraid to ask your real estate professional for information on similar sales around the area.