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...
During a crisis, my go-to strategy is digging for details. The more I ask questions and dive in, the better the chances of finding a resolution for all parties involved.
It's about reaching a middle ground, not a perfect solution where everyone feels like a winner. Conflict requires compromise.
So, how do I dig for details? Let me share five or six strategies for engaging in productive conversations.
1. I encourage people to open up to me.
I ask them to elaborate on what's happening and why they feel the way they do. I want to draw out their thoughts and emotions. Sometimes, my goal is to help them release their emotional tension. By talking it out, they become more amenable to reaching a resolution.
2. I clarify by asking for more context.
When things are unclear, I dig deeper. I rephrase questions if necessary. Lawyers excel at this skill.
3. The third approach is normalizing.
I let them know they're not...
I recently learned a powerful technique from a top real estate agent:
It involves using specific language to handle objections.
Here's what I mean:
Instead of responding with "yes, but," I want you to rephrase it as "yes, and."
This simple shift can have a profound impact on your client interactions. For example, if a client tells you they want to hire a different agent, instead of saying "yes, but," try saying "yes, and I appreciate your honesty. I'm curious to understand your reasons for making that decision."
The magic of this approach is that it changes the dynamic and encourages open dialogue.
When a client expresses dissatisfaction with a property, rather than responding with "yes, but," respond with "yes, and."
Let's say that they think the house doesn't have a big enough backyard. You can say: "yes, and I understand your concern. On the other hand, there's a lovely park in the neighborhood that might...
Did you know that one in seven US home investors lost money on their investment in March?
While I don't feel too bad for them, it's worth noting that profits are down for flippers and investors in the marketplace. And the reason for this is simple: holding costs are higher, interest rates have increased, and there's less inventory to choose from. So when a property that meets their criteria does come on the market, there's higher competition for it.
But as a REALTOR, you can help investors and be the person they turn to.
Let me share my personal experience:
Twice this week, I had different agents representing buyers call me. Their approach was interesting. They said, "Hey Jim, I noticed you recently purchased some real estate investment property. I have an investor myself who's looking to buy something. Do you have anything that you're holding that you'd be willing to sell now that you've bought some other...
I have a concept called "anchor point pricing."
Here's what it means:
During a conversation about price with a seller, I bring up the neighbor down the road who listed their property but didn't really want to sell it. They overpriced their house and have been chasing the market down with four price reductions in the last 90 days. Their home has become stigmatized and people think there's something wrong with it, no matter how low they price it.
I never want that to be the case for my clients, and you shouldn't either.
In this market, first impressions are critical:
The longer a property is on the market, the less it gets.
That's why we use anchor point pricing. Every time potential buyers drive by the overpriced neighbor's listing, they're reminded that they don't want to end up like that person. This conversation can be powerful when someone is on the fence about overpricing their property.
Want more secrets like this that...
Okay guys, we all know that there's not enough listings to sell in our markets across the country, but there's still pretty strong buyer demand despite the interest rates. Every agent that I talk to has buyers, but their biggest struggle is finding buyers' homes. So what we need to look at is a deeper level, we'll call it, underneath where the market is seemingly at. We see that there's just, on the surface, it doesn't look like there's a lot of listings, but underneath that, just boiling underneath is what we can call shadow inventory.
I'm gonna give you a classic example:
I sold my house about a year ago, but for about six months leading up to that sale, I would have sold my house. And what I mean by that is we put the home on the market, you know, and we then sold the house. But I would have sold before that. If an agent had approached me and said, "I've got a buyer and I can sell your house today," I would have absolutely signed...
Hey guys, when we're talking to a seller and we're having this conversation about price—because price is the ultimate marketing tool that we have—sometimes it's hard for sellers to understand the relationship between the price and interest rates.
So I wanna give you some scripting and some dialogues along these lines, which is really important. And it's focusing on the difference in affordability for buyers and really how most buyers are payment focused.
So if I'm sitting with a seller, I might say:
"Now you've probably been hearing that the interest rates have been rising. But I wanna relate that to what that means to a buyer for your home. So the beginning of the year, interest rates were pretty much at 60-year lows or around 3% level. And since the beginning of the year, we've really more than doubled. We're now pushing 7% and we're probably gonna be over 7% very soon.
And so here's what...
Is it a good time to buy a house today?
It's an important question for us as REALTORS to be able to answer and really be passionate about it. This isn't just an answer we're giving because we wanna sell a house, but an answer that's actually backed up by real data.
That way, buyers will actually believe what we're saying and be influenced by what we're saying.
So here are 5 key reasons, backed up by data, why people should be excited about entering the market today:
1. Rents are rising quickly.
So if you're not a homeowner, what are you by default? In most cases, you're a renter. So latest reading shows that rents are up 14.8% compared to a year ago. And they're likely to continue to rise at a fast pace going forward.
2. Interest rates.
Interest rates have settled back down a little bit. They're not at the peaks anymore. So interest rates historically, when you look at the last five decades, have averaged 8%. Right now, we're in the high...
A number that we should be concerned with right now in the market is 16.1%.
So what does 16.1% represent?
It represents the number of transactions that were canceled last month. The last time we saw a number that high was at the beginning of COVID when buyers really didn't know what was gonna happen. March, April, when COVID really went into full effect in our country in 2020. That's when you saw this same level of cancellations. And that's what we're seeing again right now.
So how do we tighten down offers so that sellers have some clarity that they know they're gonna get to closing?
I'm gonna give you several things to think about. You might have a few more. But one of the things is getting the disclosure statement signed as quickly as you can.
Most states require a disclosure statement. This is where we're the seller's gonna disclose everything they know about the house to a buyer. But not waiting around, not delaying getting that...
I had one of my best agents come to me a couple years ago and she said, "Jim, I got a listing that's priced right. And we're getting showings. But we're not selling the property."
And I said okay, let's go take a look at it. So I made an appointment with her and we went up and looked at the property. And immediately when I pulled up, I knew what the problem was. The property had a steep driveway. And I told her I bet a lot of people were commenting on the driveway. And she said, "Yes, true. We're getting a lot of negative comments on the driveway. And I think that's really the biggest reason why people aren't, you know, looking at the house. Or looking at the house, but then rejecting it."
So we went in and explained to the sellers that they can have the best price property in the world. And actually, have the best house in the world, but that driveway could be the stumbling block for getting it sold.
So I'm gonna give you a...
Jim would like to talk to you about your real estate business with a complimentary 30 minute coaching session.
During the call be prepared to discuss - Your goals for the next twelve months. Your time management and priority management strategies. Your willingness to change and adapt to a changing market landscape, and your biggest choke points - what's really holding you back
The road to transformation starts with small steps. Take your first towards a better real estate business today...