There’s something that every agent should be thinking about right now in order to better advise their clients—and that’s how to master market knowledge.
There are four steps (plus a bonus hack) on how to position yourself as the market expert to your client base. As the market gets more challenging, and as we get into this higher rate environment, it’s not going to be an obvious decision to buy or sell a home. It’s going to be based on motivation and major life events.
This means consumers are going to be more careful about who they select as their real estate agent. There will be a lot more interviewing that goes on compared to the past couple of years.
So, to stand out as the market expert and gain more business, follow these steps:
In-Depth Market Research
Step one is doing in-depth research on local real estate markets.
Before you go and meet any buyer or seller, ensure you know the following:
- Do you know where prices are changing year over year?
- Do you know where days on market are trending year over year?
- Do you know at what price point in the market where demand gets a little soft?
All of this comes down to market research. What are you doing to understand the trends? Do you know the data—and can you spit it out on demand?
Understand Neighborhood Demographics
The second step is understanding neighborhood demographics and amenities. Do you know the buyers moving into neighborhoods?
On every listing presentation I go on, I will say to folks, I know everything about the buyer except their name. And then give them a breakdown:
- Here’s how much money the buyer needs to make.
- Here’s likely the type of home that they’re coming from.
- Here are the reasons why people move to your neighborhood.
You have to be able to identify neighborhood demographics and show that you understand that component of the market.
Analyze Recent Sales Data
Next up is analyzing recent sales data and property values.
This is pretty straightforward. What I’m a big believer in is presenting property values in three ways:
- Active listings show the current competition (which may not be much) to gauge what the market is trying to do.
- Pending sales give an idea of where the market is heading.
- Closed sales show what the market has done in the recent past.
That presentation is going to give folks an idea of the flow of the market. The market’s always moving in one direction or the other. It’s never really stagnant. And if you can present all three types of listings, it’s going to really help you, and it’s going to help other people understand where the market’s headed.
Identify Emerging Market Opportunities
The fourth step is identifying emerging market opportunities.
What neighborhoods are people moving to because they can’t get into the neighborhood that everyone wants to be in? What’s the backup plan for some of these folks? What are places that are similar? Maybe instead of walking to downtown, you’re only a couple minutes away, and you can jump into an Uber. Where’s a place where you can get a little more bang for your buck and still be in the same general area? Are you bringing options to folks outside of what’s going on in the marketplace?
In order to do that, you have to be previewing properties. You have to be driving by homes. You have to look at these data points every day on your MLS hot sheet.
This is not a one-and-done thing. This is a constant education process.
Bonus Hack
How are you connecting with these folks to show them you’re the expert?
Consider a variety of ways you can show a connection to your prospects:
Do you have a local connection to the area? If you went to school in the area, currently live there, or have family from the area, aim to mention that during the appointment.
If you can’t make a personal connection, then discuss the homes you (or your team) sold in the area. That’s very different than just saying, “Hey, I, I know the area, we know the market. We do a lot of business here.”
All you’re doing is showing them that you are the local expert. And if you’re not able to do that, they might hire somebody else.
As we continue to get into a market where there’s more competition, the best thing you can do is master market knowledge, so you’re the agent of choice.
