If you think it is hard to find a home to buy now, hold on to your hats. The demand is about to explode and pressure to find sellable homes may get to an all-time high. In most of the country the demand for listings exceeds supply. In some markets, it is extreme where multiple offers are coming in the day a new listing hits the market, and we are in the middle of Winter! The next 30 – 45 days could be unprecedented as the following Real Estate storm fronts collide:
Sellers waiting to list until Spring.
This phenomenon occurs every year especially in northern climates. The perception for most (including Real Estate Agents) is that waiting until the snow melts, grass greens and flowers bloom is the best timing wise because first impressions are enhanced with a lovely landscaped yard. Another mindset is more buyers are typically out in Spring, with pent up demand from Winter’s hibernation. The thought process is waiting until Spring means more money for their home.
One key to successful selling has a lot to do with clarifying misperceptions and debunking myths. Here are some clarifying points to bring when you receive the delayed objection of wanting to wait to list:
- In most markets, the difference between January and June sales is usually low to mid-single digits (average = 5%).
- Waiting until Spring means more competition (other listings).
- The buyers that are out now are very serious.
- (In this current market) waiting to list until after April may mean missing out on the increasing demand that’s coming (I’ll explain more below).
- Delaying selling (or buying) is generally costly out weighing whatever (perceived) gain they might realize.
Keep in mind the delay until Spring objection is usually just a pain avoidance tactic to put off the trouble and hassle involved in selling. You always need to be ready to make the case why now is better than later, especially now!
Spring buyers coming to buy sooner than later.
On top of the current robust demand will be an infusion of April- June buyers that will enter the market in the upcoming weeks. The reason for this is rising interest rates. Almost all indicators point to rate hikes by late March and the media will start the process by running stories ahead of the date. Rates have already started the trek upward. Buyers will get the message and enter earlier than they originally planned to maximize their purchasing power. Another factor that will fuel the market is the economy and tax reform. February paychecks have hit and many buyers find they have more money in their pockets. Businesses are growing and hiring. Confidence is in the air and this along with the threat of rising rates will motivate more to buy now.
Here in lies the problem. Demand will far exceed supply, perhaps greater than we have seen in a long time if ever. There will be a few winners: sellers who sell now and Real Estate agents who bring listings to market now. Buyers and Buy Agents potentially will experience more frustration than ever with an increase in pressure and even more multiple offers. It could take several attempts to finally gain an accepted offer. The listing agent will win every time with much less time invested per transaction.
This is also a great opportunity to gain an advantage and proactively position yourself to win during this time.
Put an absolute total focus on bringing listings to market now. Follow these steps:
- Ask yourself every day, ”How many list appointments can I set today and listings can I take this week?”
- Get an ‘Urgent List Now’ message out to: Past Clients/Sphere, Past Interest sellers, Social media, FSBO/Expired, Farm, Strategic partners and networks.
- Sellers who are also buying and need to sell to buy need to come to market now or they will lose on both sides. Put them at the head of the line. Waiting or delaying until April to list means losing out on the now demand. They will also be in a depleted market because their buyers bought sooner. Additionally they will be locking at a higher rate and having less purchasing power when they are finally able to buy.
- When asking for referrals ask for sell or list leads. The buy leads will come anyway. Your main focus (now and always) needs to be sellers.
- Focus primarily on your Past Buyer clients especially 2010-2012 buyers. The reason is simple, 1- their next move will be to sell and 2- your Clients have gained equity!
- If your market is currently slower- heavier inventory/less demand, bring the same message and also include for your buyers an urgent “Buy Now” message. As a Realtor, no matter the market, you want to be a Listing Agent, even when it favors the buyer.
- Forward this email to your Realtor partners and offer to help them with the urgent message.
- Call your past clients and give the sell- buy now message (refi too). Turn your leads over to your top Realtors. Giving a listing lead to your Realtor is gold and puts you way ahead of your competitors who usually only think of referring buyer leads.
- Offer to call your Realtor’s 2010-2012 past buyers on their behalf to give the message and set the appointment for your Realtor (Huge value in your relationship). Remember, people usually buy or sell every 5-10 years and these folks bought at the last bottom and have experienced great appreciation. You will also grow your base and some may need a refi if they are not moving. If they do sell you are in prime position to do their loan on the buy side.
- Work FSBO’s to screen their calls and make sure their buyers are qualified and don’t have ulterior motives. They will work with you before the Realtor because they don’t have to pay you and they need your services. You can build rapport and turn them to your best Realtors (again a listing lead is far better than a buy lead to a Realtor –especially now).
Forward this to your Realtor(s), Lender(s), strategic partners, anyone who may be thinking of selling or buying real estate in the next 6 months and your friends and family.
As I mentioned, most Realtors and Lenders will be on the sidelines not participating if they are not positioned right. Don’t let that be you! If you want more help equipping and building your plan and skills to reap the rewards of being in front of the right people, Contact Us Today and schedule a Complimentary Session with one of Our Coaches!
It always cost to delay, so don’t!