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Your Confidence in the Market Makes a Big Impact on Your Clients
Real estate professionals are really good at embracing the ups and downs of the housing market. Those that truly succeed know how to not only managing the changes—interest rates, supply and demand, economic pushback—but also how to focus on the positives and share that confidence with others.
What you say about the market can be a deal breaker
Your clients and colleagues look to you for expertise when it comes to the real estate market. That’s why it’s so important for you to be the voice of reason right now. Unfortunately, the past year has left many potential buyers and sellers at a stand-still because they are afraid of the common messages they are hearing, “The housing market is too volatile, it’s too crazy, inflation is taking over, don’t buy until the rates lower, etc.” Many of us can relate to this and are guilty of even sharing some of these messages. The issue with this is our clients look to us to be the voice of reason when it comes to real estate. What we need to be sharing is the fact that we understand the current market, we know how to navigate these changing times, and we have their backs. If we are continuing to highlight our frustrations/negativity, our clients won’t want to make a move.
Don’t compare today’s market to yesterday
I think it’s safe to say, we all need to focus on bringing confidence back to our clients and colleagues when it comes to our industry. Many of us were around for the crash of 2008, and perhaps even have some scary memories of that time. But it’s important to not compare today to yesterday, and for good reason. If you remember, back then, banks were handing out loans like candy. We also have a vastly different supply of homes available.
Jared James, a real estate expert, shared the following on Realtor.com, “In the four years leading up to 2008, we built twice as many houses as were needed to satisfy demand, creating an oversupply of homes. Today, we have a cumulative deficit of 5.8 million homes to meet the current record demand. That means we would have to overbuild by 1 million homes per year for the next six years just to get back to the equilibrium of supply and demand needed for a healthy market.”
Helping your clients navigate the current market
Succeeding in your business means getting your clients to the closing table. There’s a lot involved before the final transaction, and right now it starts with informing and educating them on their options. Take a moment to think about how you would answer the following questions from a client?
- Is now a good time to buy?
- Is the market going to crash?
- Won’t I be throwing away money with the interest rates so high?
- Should I wait a year or two and see if inflation goes down and the rates get better?
How you answer these questions is so important. Be sure to share the other side of the coin when it comes to their worries. For example, are the rates too high and would you be throwing money away? Well, the rates are much higher than what they were during the COVID pandemic, but historically they aren’t that bad at all and actually are a bit lower than the average of 8%. Check out this great blog to learn more about the current rates and how the U.S. has averaged over the last five decades.
The bottom-line is, your confidence and messaging to your clients and peers is extremely impactful and will directly relate to your success. Focus on moving your clients forward, and shine some light on the good side of our housing market right now.
Velocity Title Moves Your Business Forward
Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying and investing process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!