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As we see the slowing of the economy and the
lowering of consumer confidence, we can feel the momentum being sucked out of
the real estate market. If it
weren't for historic lows in the interest rates for home mortgages, the national
real estate market would be softened even more severely. It is possible that it could dry up, except for only the most
motivated sellers and buyers. To not merely survive in these market trends, but to ultimately thrive, there are a few key skills that a salesperson must master. These skills, mindsets and concepts allow you to close sales even in these apparently, increasingly difficult circumstances and markets. First we have to identify the buying and
selling trends that make the job of the salesperson increasingly difficult. 1.
Buyers making slower buying decisions. They take longer because there is no sense
of urgency, given the market trend. They
are less logical in their approach and have limited reasons to hesitate, but
they do. The "move up"
buyer can hesitate, but now is the best time for them to buy. 2.
Tougher competition for service dollars. Other companies and especially sales people
adopt the mindset of "whatever it takes" to make the sale. 3. Drastic reduction in commission fees charged. This again, due to the "whatever it
takes" attitude to meet the financial obligations. 4. Your best past clients and "raving fans" suddenly have very few referrals. They don't know anyone that is moving or who
would want to move. The markets
trends indicate, with help from the media, that we are in a less than favorable
time to invest in real estate. Your
referral business just dries up in tough times.
Your referral base is less effective in generating the referrals needed. 5.
Your "internal
advocates" or people who are in strategic places inside companies often
lose their clout and power, or even lose their jobs. 6. The number and intensity of price and commission objections you receive during presentations are more frequently voiced and with more force of belief. That means that they are harder to deal with
and require more skill to overcome. This
trend is especially true if you're unprepared for them in the first place. 7. Escrow or pending transaction fallout grows. The cancellation of listings and deals
pending accelerates and expands. We have seen this specific trend growing
exponentially in the fall of 2001. The
need for the Agent, to have the skill to acquire high amounts of earnest money
is accentuated. 8. The length the seller is willing to give you to sell the house shortens while the days on the market increases. 9. Unexplained, rapid and radical changes in direction by buyers and sellers. 10. More personal procrastination from your buyers and sellers. This starts from granting appointments; to
follow up, to showing property, to the eventual forwarding of the paperwork to
all parties. 11. Call activity drops and the quality drops with it. Long-term prospects are more prevalent.
The motivation of the prospect moves into question.
More lead follow up is needed to move the prospect to client status. 12.
The
lack of a credit worthy buyer causes transactions to be more difficult. Are you currently experiencing any of these in your marketplace? You only have to experience a few of these I've listed above to see visible signs of the toughening market. You don't need all twelve to see a significant effect on your sales activity in your marketplace. Markets can adjust drastically with only one or two of these pressures being applied. If you are experiencing these trends you should begin preparing for an uncertain or changing market, at the minimum. If these trends continue, the real estate market will move squarely into a tough market segment. The evaluation of the marketplace should be
an ongoing activity by every salesperson. Most
salespeople don't track and evaluate their performance, or the marketplace
performance, so they can't move ahead of where the marketplace will be.
Wayne Gretzky was asked one time why he was so great.
He didn't comment about his speed on the ice, the way he handled the puck
or even how he took his shot. He
just plainly responded, "I go to where the puck is going to be, not where
it is." Are you going to where the marketplace is going to be rather than
to where it is? Are you reacting to
what has already happened or are you proactively going to where the marketplace
is goin? Published in FPG's March 2002 Issue |
