Itâ€™s no secret that the market is in a unique position right now. Active Listings are low, demand is high, interest rates are at never-before-seen levels, and there is a documented housing shortage across the U.S.
Your first reaction to those market conditions might be to panic or stress out. How are you as a real estate agent going to find a home for your client if it goes from market debut to pending within two days? Or how are you going to win that elusive listing when every day there are more headlines saying that inventory is so low, scaring homeowners and making them afraid to list their home because they think they will not have anything to buy.
It all comes down to perspective and mindset.
Pending home sales rose an unexpectedly high 8% this May compared to April, according to the National Association of REALTORSÂ® (NAR). Thatâ€™s also compared to an expected 1% drop, making it the highest level of sales activity for May since 2005.
Whatâ€™s more, according to Knock, creators of HomeSwap, commission revenue is on pace to climb more than 16% this year for real estate agents. Knock also notes that this number surges past the $100 billion mark for the first time in history.
This is all taking place even despite a slight dip in the rate that agents are charging clients.
Additionally, according to Dr. Lawrence Yun of NAR, in his presentation during RISMediaâ€™s Spring into Action event, existing-home sales were forecasted to increase by 10% this year. And that meansâ€“despite the headlinesâ€“inventory is actually up. It just goes from active to pending so fast fast itâ€™s easy to miss that sales volume is actually up! So, if youâ€™re looking for inspiration, this is it. Now is the perfect time for agents to get after it and rise above.
We can all find ways to panic in this kind of market. But if you focus on whatâ€™s actually working and change your perspective on whatâ€™s going on, you can end up currying everything in your favor to not only survive but thrive.
Set An Accurate Perspective
Real estate agents have continued to be the dominant option for buyers and sellers when it comes to finding an expert to help take care of their real estate needs. This creates an opportunity for real estate agents to set the tone and the perceptions accurately. And I notice that the agents that are excited and positive and, focusing on the fact that more homes are being sold this year, are the ones listing homes and helping both buyers and sellers win those homes in the few days that they are active. I love their â€śMore transactions are being done this year, so why not be a party to those transactions instead of sitting on the sidelinesâ€ť attitude.
As any good agent knows, success is about engagement, re-engagement and staying in touch. The positive approach is consistently asking current and past clients whether or not theyâ€™d like to be kept up to date about homes listed or sold within their surrounding area and providing value to them. Learning how to cater to your clients by researching the market, creating and sending out â€śIn Your Neighborhoodâ€ť reports and communicating valuable information that meets their needs, can help you pivot in this unexpected market.
In the end, agents shouldnâ€™t fear these unique times. Changing your mindset at the start of each day can help you lay the groundwork for success no matter what the marketplace looks like.
Todd Sumney is the chief industry officer for HomeSmart International. For more information about joining HomeSmart as an agent, please visit HomeSmart.com/join, or visit HomeSmart.com/franchising for franchise opportunities.