The Perfect Real Estate Storm has begun with evidence of more buyers coming to an already strong seller’s market and reluctant sellers waiting for Spring thinking it will be better for them later. I heard of one new listing that received 30 offers in the first few days of coming to market!
With the upcoming and anticipated Federal Reserve Meeting March 20-21 where most expect the Fed to raise rates, media will drive the message more and more as the date draws near. This will bring Spring buyers to market sooner and drive demand to an all-time high. That is why it is imperative you act now with an urgent message To potential sellers to List Now and encourage hesitant, first time buyers with low down payment to wait until April to see if there is more breathing room for them.
Many of my clients are taking the Urgent List Now message to market and are getting great results. One agent took 3 listings in one week and set several more appointments simply by bringing the message to his past clients. One client set an appointment on her first call to a 2011 buyer.
This next 3 weeks could be the most critical of this new year and could determine your first half production for the following reasons:
- The winners will be: sellers who come to market now, the agents who bring them to market and the fortunate Loan Originator who facilitated that loan.
- In general your next 60 day pending will be determined by the number of good sellable listings you bring to market between now and March 15.
- If you are stuck on the buy side (as an Agent) you will lose more than you win along with a majority of buyers.
- Once the Fed announces (most likely) a rate increase, frustrated buyers who lost out multiple times may take themselves out of the market for quite a while since they missed the lower rate, slowing 2nd quarter activity.
- Sellers who wait until April or later to list could see fewer buyers, longer market times and if they want to buy, have to pay more for less house due to less purchasing power.
This is a great opportunity to bring a consistent message to key people now. Remember, not everyone will receive or act on the message. Hesitant, slow decision makers will opt to wait although delaying is costly. Your job is to find the folks who want and need to take advantage of this potentially once in a lifetime market scenario. Follow what is working for my clients:
- Focusing on 2011-12 buyers and buyers of your listings. They have tremendous equity and people who like to buy low, love to sell high. Especially if they are buying or moving up, they can lock in at lower rates now.
- The buyers who need to sell to buy first need to come to market now. The seller who needs to know what they are buying first will not succeed and shouldn’t be worked with unless they are willing to list first, write on what is available once they are pending and worst case scenario will move twice if necessary into temporary housing until they find the right property.
- Although there are not many Expired listings, going back to October 31 to now gives more options. Few agents work past Expired or work them well and this message is just what they need to reignite hope for success this time.
- Getting the message to all Past Client and Sphere to help them promote you to their friends and family who are thinking of selling in the next three to six months from now.
Loan Originators can bring this same message to their past clients and bring listing leads to their key Realtors and get the loan when their client buys. If you are in a slower, heavier inventory market you have the opportunity to also bring an Urgent Buy Now message as well.
Every day you take action and talk to as many possible sellers increases the likelihood of success in these few short weeks. The reverse is also true. Don’t delay on anything. Contact Us today if you need help rolling this out.