Is Selling Real Estate a Dying Profession in this Down Market?
If you are a real estate agent or thinking of becoming one, learn how discount brokers’ falling market and competition affect the real estate profession.
Long gone are the days when one great sale meant you were on easy street for the rest of the year…When joining the “million dollars” club was a rite of passage, and paying big bucks for fancy billboard advertisements meant you’d arrived. Only two years ago, all you had to do was list a property, and two days later, it was sold at list price or above.
These days listings are languishing on the market for three months, six months, and longer. Buyers are in the driver’s seat, and many are opting for discount brokers that charge a flat fee instead of a six or seven per cent commission. So is the real estate profession as we know it dead? No, but the days of easy money and quick profits are. Following are tips on how to make it as an agent in today’s market:
Focus on buyers.
For a long time, big money went to agents who maintained a lot of home listings. Now that those listings are sitting on the market and not selling, buyers are in control. By becoming a buyers’ agent, you can use your negotiating skills to help those looking for a home get the best deal possible. First time home buyers especially need assistance in climbing the slippery slope of homeownership. Remember, as a professional; you know the market. Use that knowledge to help customers find the best property at the lowest price in the most desirable location.
Become a relocation specialist.
When buyers come from out of town, often they need to find property fast. Therefore, learning about the local real estate market might be difficult. However, you can use your knowledge of the area, the schools and the marketplace to guide them quickly and efficiently. Sure they can get a lot of information on the Internet, but someone who knows every detail about the school systems and has combed every street in the area for years commands a lot of credibilities.
Preview homes first.
Now that every single home listing is on the Internet for buyers to see themselves, You must perform at a higher level of service than ever before. Before meeting your consumers, learn about their needs and preferences and take them on tours of properties you believe they will like. That way, you save time by answering specific questions about the house before they walk through the door.
Increase your advertising.
At a time when the office phones are barely ringing, get your message out any way you can. You do not need to spend a fortune on extravagant billboards and sales fliers. Instead, a small direct-mail campaign to your target area and customer base will help. Your letter emphasizes your experience and ways to help potential customers cut through the maze of paperwork and time-consuming aspects of a real estate sale.
Ask for referrals.
Don’t be afraid to approach friends, family members and former customers for referrals. The most effective kind of promotion is word of mouth. Therefore, spread the word and distribute your business cards everywhere you go. You never know where your next prospect may appear.
Finally, do not surrender.
Entrepreneurs realize the market shifts. So if you can ride out this downturn, you’ll be way ahead of the other agents who gave up and got out of the company.