Ten Tips to Help You Stay in Front of a Changing Real Estate Market

As someone who has seen a lot of ups and downs in the real estate market throughout the years, I have learned not to panic when the market shifts. As they say, “this too shall pass” and it will. Every blip in the market may look a little different than the previous one, but we learn from each. And a blip may last for years and end up as more than a blip. That’s why when the market changes, it is so important to look to those who have successfully weathered changes before.

I always smile to myself when I hear real estate companies hiring people from outside industries to run their real estate operations. Those people may have strong business acumen, but there is nothing like having someone who understands what it is like to work with agents and brokers and who can adapt to a changing real estate market because they have done it before. It all seems so obvious when you come from the outside until you get on the inside. Not so easy.

Pay attention to the changes—even the subtle ones

We have seen a financially rewarding market over the last two years for sellers, real estate agents, and their brokers. But it has been a very unhealthy real estate market in general. Such a lop-sided market means there are winners and losers. Is the market starting to cool down or really just beginning to normalize? The market isn’t changing in the same way or at the same speed in each area and it may even vary neighborhood by neighborhood. But what happens in one, is likely to follow in the others.

While some buyers are concerned over rising mortgage rates, inflation, and what is generally going on in the world, others may realize that it is their time to jump into the market when others pull out. There is opportunity in a changing real estate market. As a leader of a client services group, relocation division, or business development department, what should you do?

Here are some tips to keep business moving:

1.      Ensure your staff has the most up-to-date market data from reliable sources so they can set expectations with the transferees, b to b referrals, and online buyers and sellers.

2.      Ask your listing team to reach out to their transferees to discuss possible price reductions if necessary and provide current market data.

3.      Continue to prepare your buyers for low inventory and the possibility of multiple offers. But things may not fly off the shelves at such a hectic pace and may not be at the above asking price.

4.      Instruct your listing agents on how you want them to address the changing market on BMAs.

5.      Send up-to-the-minute market data to the relocation management companies so you can help set expectations for your specific market.

6.      Many relocation benefits packages for those transferees on hold are set to expire. Reach out to let them know that the market is cooling down a little and that there may be fewer offers per listing and more open-minded sellers. It might motivate them to reconsider their move. They might also check to see if their policy offers any down payment assistance or other benefits to help in this market.

7.      If any transferees rented instead of buying due to a lack of homes to buy, reach out to them to let them know things are changing and put them on a drip campaign until a few months before their lease is up. Then make sure the assigned agent reaches out to reengage with them.

8.      Use your social media or your email campaign to let followers and clients know what is happening in your specific market. It allows you to control the narrative.

9.      Not only do you want to reset expectations with sellers but with buyers too. Just because interest rates have gone up, it is still a great time to buy. The lack of inventory is not going away any time soon.

10.   Amp up your communication with your online leads who may be sitting on the sidelines because they think they will lose on any property they bid on.

But most of all, keep the lines of communication open with all parties. Don’t let the media determine how your clients view the market. They look at it based on recent events. You and your company have the wisdom of the big picture and can provide a high-level overview that includes historical and current events. We can’t assume that anyone truly knows what is happening in your market area, so it’s always best to get in front of changes. The key is to remain nimble and ready to shift as necessary. Make sure you are their local resource for all things real estate.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” ~Franklin D. Roosevelt, an American politician, and attorney who served as the 32nd President of the United States from 1933 until his death in 1945