For the last three months, rents have been on decline, and that's kind of a shock. We saw rents skyrocket during covid, but now there's pressure coming into the market.
Two things have happened:
First, people are starting to come back into buying houses again, so they're leaving their rental units to buy houses, a small trickle there. Another big part is the fact that 500,000+ new units across the country were built and came online last year, and 400,000+ are coming online this.
So what's the opportunity for us as REALTORS?
Well, one opportunity is to target mom and pop investors in your local market. These are people that might own two to 10 units in your market. They're not major industrial investors, but they'll be impacted by higher vacancy rates and decreasing rents. Some of these folks bought and they stretched themselves to afford it, and if they have a couple of months of vacancy, they could really get hurt.
Still, it's a strong market and there are still investors acquiring...
Hey, team, got two game-changing ideas for your upcoming Comparative Market Analysis (CMA). As you gear up for the next week or two, consider adding these to your arsenal.
Number one: Identify the strongest competitor and share this insight with the seller. During the CMA, explain, "Mr. and Mrs. Seller, we're diving into a CMA, much like an appraisal. Analyzing three sold properties, three active ones, and three that didn't sell. My suggested price is based on this, but I want to highlight a key competitor. This is the one we need to go head-to-head with. Buyers are likely considering these two listings, so let's be super competitive."
Number two: Distinguish between an as-is price and an improved price, especially for properties needing a bit of work. Frame it this way, "Like an appraisal, we can provide an as-is or an improved price. If we list it as-is, aggressively priced to sell, we're looking at this range. However, if you invest in a few improvements, I've got great...
Hey, team, you're on prospecting calls today—reaching out to expired listings or for sale by owners, maybe marketing in a neighborhood. What if no one picks up? Do you leave a voicemail?
Before that, try this trick:
Hang up and call the same number quickly, twice. Imagine being on the other side—seeing a missed call, then the same number calling back. You're more likely to pick up.
Now, they still don't answer. It goes to voicemail. Should you leave a voicemail as a salesperson? Absolutely. The chances of circling back and calling again are low. Keep the message concise and to the point.
For an expired listing, I might say, "Hey, I'm Jim. Your property delisted today. Wondering if you're interviewing other agents. I have a 25-point marketing plan that works. Just sold a house nearby, 25 days, 5% over list price. Let's talk."
For a for sale by owner, a simple approach: "I'm J Man with ABC Real Estate. Saw your ad on Craigslist. Can I do a video of your property for...
Here’s a quick and easy technique when you're talking to investment property owners:
So, you're out there doing lead generation, looking for investment properties like duplexes, triplexes, or RV parks. Often, when you ask owners if they've considered selling, the answer is a flat-out no, right? Happens a lot. But here's the game-changer: ask them why they're holding onto the property.
"Why are you holding onto this property?"
Give them a moment to think, and their response might be about it being a good investment or passing it on to their kids. Respond with understanding, acknowledging the value of holding onto good investments.
Then, drop the bomb: ask if they know their current rate of return.
Offer an income analysis sheet to calculate their cap rate and return on investment.
Now, here's the kicker – if you can beat their current rate of return, would they consider moving their money to something even more profitable?...
Folks, let's retire the F word - follow-up.
You know how often you've had salespeople call you saying, "I'm just following up" or "I'm just checking in." It's not the best approach. It sets the tone of being an annoying salesperson, and we don't want that. We should aim higher and see our services as valuable.
Instead of using "follow up" or "checking in," try these alternatives:
Start with, "As promised, I'm calling you because I have that listing you asked about."
Or say, "I was thinking about you today because something interesting came across my desk."
Or perhaps, "I'd love to get your opinion on a strategy I have for maximizing your home's value. I know you're not ready now, but it'll work anytime."
Another option is, "I had a little time between appointments, and I thought I'd give you a quick call. I only have about five minutes, but I wanted to ask you something." This way, they know it won't be a lengthy call.
I want to help you become the go-to expert in your market.
You should aim to be seen as the trusted authority that people turn to with their real estate questions. To achieve this, you need to consistently share information and content about the real estate market.
Let me share an example of a script I recently created for our agents in our coaching program. This script focuses on national market statistics that you might find valuable:
First, let's talk about inflation. You may have heard that inflation has recently risen to 3.7%. One common question I receive is, "How does this affect the real estate market?"
Well, the most significant impact has been on mortgage rates. Mortgage rates have climbed to the mid-sevens, almost hitting 8%. This has caused some potential buyers to hesitate. However, there is some good news:
Surprisingly, we are still selling approximately 91% of the number of homes we sold...
I wanna give you two questions you should ask every buyer to test whether they're actually ready and willing to move forward in the process.
Your time is your most valuable asset. You don't wanna be spending it with people that are not ready to pull the trigger. So one question you can ask is this:
“Hey, you know what? The way I work is very low key. I never wanna pressure anyone. But I do have a quick question for you: If we find you the right house, the one that really clicks all the boxes for you, is there anything holding you back from moving forward?”
Now, that's a great kind of pre-close question that you can ask in advance before you go out and start looking at homes.
And here's another one:
“One question I ask everybody I start working with before we start looking at homes is, what's your biggest hesitation? What's your biggest fear about this home buying process? I wanna make sure I...
Hey guys, what if I told you that today may be a better time to sell your home than even last year when rates were 4%?
Let me give you the data (and a script you can use):
“According to the National Association of REALTORS, home prices are now only $4,000 away from their all time high last June, and we are at 11% less inventory than we were at that time.
The other great thing that is happening in this market is that sellers are now back to getting 100% of our asking price on average in our market. And get this: 37% of sellers are selling for over full price.
So this is a market that is a great market for sellers in most price bands. If you're thinking about selling, I'd love to chat with you. I'd love to have you send me a text or a quick call.
Let's talk about what it might look like for you to put your home on the market.”
That's the script I want you to use. That's the script I want you to put out because...
Guys, 60,000 agents have already left the industry, and another two to 300,000 are projected to follow.
But here's why it's good news for us as REALTORS:
Each departing agent likely had one or more transactions last year. As they leave, those opportunities come back into play, and we have the chance to handle them as real estate professionals. So we can expect to get busier with each agent's exit.
However, there's an even bigger opportunity that most agents are overlooking:
Every agent who leaves the industry leaves behind a sphere of influence, a network of family and friends who may have some influence that we can tap into.
Here's what you can do:
Reach out to these exiting agents and express your condolences about their departure. Then ask them a quick question: Would they be interested in monetizing their hard work by earning referral fees? Since their license is still active, they can leave it hanging and...
Hey guys, when you meet someone new, whether it's at a party or a function, one of the first questions they ask is, "What do you do for a living?"
Our default response as REALTORS might be, "I'm a REALTOR."
But that's boring and generic. Everyone knows multiple REALTORS.
We need to rethink how we present ourselves and craft a unified message that leaves a lasting impression. We need to occupy a unique space in the minds of potential clients.
Imagine the brain as a whiteboard with "REALTOR" already written several times. It's meaningless and makes us seem like just another commodity. We must find a new space to occupy.
Here are some examples:
1. "I specialize in riverfront and rural properties in southern Oregon. With 30 years of experience in this market, it's my passion."
2. "I focus on helping people buy homes in the highly desirable Summerfield area."
3. "As a relocation specialist with John L. Sky Realty, I...