Many people are afraid of the changing market. In a normal year, there is an average of 5.7 million to 6 million real estate sales made across America from buyer sales.
However, even when the market is bad, there are still at least 5.5 million sales in a year. In reality, the number of sales in a shifting market typically doesn’t change that much.
But the number of real estate agents selling is shifting. As a result, the number of licensees is decreasing faster than the number of sales.
When there is a market shift, many real estate sales agents shift their activities because their confidence is affected by the change. They complain about the change, withdraw, and stop working on leads thinking that buyers will back out due to the high-interest rates and high pricing.
As a result, agents blame the market change and mislead themselves into thinking they are not getting more business.
However, the reason why real estate agents don’t have a sale is that they take less action. They lose their confidence and don’t follow up with leads thinking they are not buying because of the market change.
It is not the market shift that you need to worry about — it is the mental shift that you need to focus on. As a real estate agent, change your attitude and mindset towards the market change and focus on what you can do to increase sales.
Because of the market change, most buyers are concerned that if they buy a property today, the price may drop soon and it will be too late. Some buyers wait for interest rates to decrease so they can save money.
As a real estate agent, if you consent to this type of conversation, you will concede to their position and lose a transaction.
Instead, go deeper into their motivations for looking to buy a property and address their needs. Recognize their point, but respond with information that will meet their needs.
When the market is changing, real estate agents hear things from buyers that they don’t normally hear, like that they are “waiting for interest rates to go down,” “Waiting for the price to improve,” and so on. Instead of being intimidating, these conversations can be an opportunity for sales agents to educate buyers.
Ask the buyer why they want to buy a property and how long they will be staying, especially if they are waiting for the price to drop or interest rates to go down.
If they respond that they are purchasing a property to use as a retirement residence or a permanent residence, you can inform buyers that the current market change won't matter because there will be even more changes in the market over the years that they will be residing on the property.
It is important to educate customers that the current market change allows them to select several properties they truly want rather than waiting for the price to go down, which will cause more buyers to buy and have an impact on the availability of properties.