RISMedia's Real Estate Magazine

APR 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1097917

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Page 30 of 144

26 April 2019 RISMedia's REAL ESTATE Research, experience and history tell us that the centering cycle of the real estate market between a seller's market and a buyer's market is one that more equally favors all parties, including real estate professionals. I call it the Agent's Market™. Here's what I mean. A seller's market obviously favors sellers. Demand is high and inven - tory is low, so sellers tend to over- value their property and undervalue an agent's role in getting their home sold. Many believe they can "sell it themselves" or try the "price-it- high-we-can-always-come-down" ap - proach, which makes listings tough- er to get for many agents. There's also tremendous pressure to cut commissions. In a buyer's market, inventory is higher, so buyers are slower to make decisions, want to see everything on the market, and are reluctant to pull the trigger. Sales prices also favor buyers more, so there's frustration for sellers and sizeable pressure on agents to be tough negotiators. But in an Agent's Market TM , there's more inventory, homes are more likely to be priced reasonably at fair market value, and both sellers and buyers see more value in using a real estate professional. That's a win-win-win. To truly leverage an Agent's Mar - ket TM , agents need to get on board sooner rather than later. That means focusing on building listing inventory. To do that in a changing market, filled to the brim with real estate distractions and disruptors, agents need to effectively commu - nicate value and service. For some, that will mean ditching old sales methods and canned speeches for new communication skills and ser - vice mindsets. Consumers don't want to be sold anymore. The "find the pain point and offer the answer" presenta - tion skills don't work, and frankly, for most agents, don't feel authen - tic, anyway. It's uncomfortable to make people uncomfortable. What I teach our Power Agents® is to serve, not sell, and to coach, not close—to have a listing conversa - tion as opposed to a presentation. These are game changers not only in terms of bottom line results (more listings), but also in develop - ing long-term referral relationships (customers for life). It's all in the art of communica - tion, which involves asking the right questions, listening on a whole dif - ferent level, and getting to the heart of a seller's real commitment, which probably isn't what you think it is. It's not just selling a house; it's about getting to their next level, whatever that goal is. Is it a home closer to the kids or grandkids? Do they need more room for a growing family? Are they downsizing so they can travel? Did they accept a job offer in another area and need to relocate? That's where learning to ask the right questions, and, in many cases, learning to really listen, rather than just waiting to jump in with pre-script - ed dialogue, matter. When you can create a connection and trust with Leveraging the Agent's Market ™ Commentary by Darryl Davis, CSP N ow is the time to up your real estate game. We're on the cusp of what should be an amazing time to be an agent. Real estate, like many industries, is cyclical. In the summer of last year, I started paying close attention to the shift we were seeing across North America from a seller's market to a buyer's market, so that I could share with my audiences and coaching members the best strategies to effectively communicate how those changes would affect their clients and customers.

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