In this current climate in 2023, being a tactician with your business is going to be more important than ever. 

And part of that has to do with getting real with the facts in your business—and the facts of the marketplace. Right now, too many agents are shouting from the mountaintops, talking about fear, getting worried about where the market’s going. We know there are things happening that we just can’t control right now, and that’s how it’s going to be given everything going on with the economy and everything else. 

So how do we navigate all this?

Become a Trusted Advisor

This is where the tactical part starts. When speaking with potential buyers and sellers, our job is not to try and convince them to do something—that’s what salespeople do. 

Instead, we want to help our clients discover what their options are. Do the old-school pro and con list. What are the pros and cons of each option? And then, let them make the decision that’s going to be best for them. That’s what a trusted advisor does. That’s being a guide with the heart of a teacher. 

When you’ve got that heart of a teacher, you’re willing to take the time in every presentation to teach. So when you’re sitting with someone, and you’re explaining their options, think about it as education. In times like this, people stop believing real estate agents because they think agents only want to make another sale. 

That’s why you have to help them understand what you understand. When you get to that point, you’re no longer telling them it’s okay to buy or sell. They’re telling themselves that that’s their new understanding. 

So how do we do this? I’d be looking at the following three pieces of information to have at every single appointment with a buyer or seller. 

1 – Seller Net Sheet / Buyer Closing Cost Estimate

One of the most important things to bring on an appointment is the seller net sheet or the buyer closing cost estimate. Show them exactly how the numbers are going to lay out. 

Financially, how will this impact your client’s household? Let them know what the numbers and the predictions are, so they have a deeper understanding of how this will impact their finances. 

2 – Predicted Mortgage Rates

Next, talk to them about where economists are predicting interest rates are going to go. This is a hot topic right now. Stay up to date on the latest mortgage rate predictions from the following companies (these predictions were updated in August):

  • Mortgage Bankers Association—Average 5.9% in Q4 2023
  • Morningstar—Average 6.25% for 2023 and 5.0% in 2024
  • Goldman Sachs—6.4% by the end of 2023; averaging 5.9% in 2024
  • National Association of Realtors® (NAR)—6.4% by end of 2023; 6.0% average in 2024
  • Morgan Stanley—Starting 2024 at 6.0%
  • Moody’s Analytics—Average 6.5% for majority of 2023; 6.0% by end of 2024
  •—Starting 2024 at 6.1%
  • Fannie Mae—Average 6.6% in Q4 2023; down to 5.9% by Q4 2024

Tell your clients, “Hey, this isn’t what I’m saying. Here’s where everyone’s predicting is going to happen, and here’s what’s going to happen with the market after that.” 

3 – The Lock In Effect

We know that right now, the longer rates stay high—it’s like pulling back a rubber band—people are going to feel more locked in than ever. The lock in effect is real.

Explain what the lock-in effect is. Say, “Right now, 90% of homeowners have a 6% or less mortgage rate on their home. So here’s what we’re seeing happen with the folks that are moving. And when those rates come down, more buyers run to the market. More sellers are going to enter the market. And sure, monthly payments will be cheaper. But if we’re not being super mindful of right now, there might be an opportunity to buy something with less competition or sell with great market conditions before the market gets flooded with inventory.”

These are the things going on in the market, and you’ve got to be able to talk about this on demand. Because if you don’t, and you’re just saying, “Well, it’s a great time to buy, it’s a great time to sell,” then you’re not a tactician. You’re a salesperson. 

You want to guide people in this market with three pieces of information:

  • Their financials 
  • The predictions around interest rates
  • The current lock-in effect

I’d be studying those pieces of information like the back of my hand. Because right now, we’re all playing for next year. Anything you do today is going to affect your business 90 days from now. And that’s what the Knowledge Broker does. 

Learn those three pieces of information, be ready to talk about them, and be able to guide people and use them to make winning decisions.