Editor’s Note: The Playbook is an RISMedia biweekly segment centering on what brokers and agents are doing to ensure they not only survive but thrive in these challenging times. Industry professionals explain the strategies they’re employing and unique ideas they’ve formulated. Tune in every other Thursday for another addition to the series.
The list of hats real estate agents wear can get extensive, but few compare to the educator cap everyone seemingly glues to their heads throughout the transaction process. As local experts in a given market, it doesn’t take long to find yourself amid an endless Q&A marathon, fielding an array of questions from clients.
Both the housing market and the U.S. economy are experiencing their fair share of changes, giving rise to headlines that can evoke a mix of emotions in buyers and sellers. As such, agents agree that many of the questions they’re addressing as they work their way through today’s market are focused on current market conditions plaguing buyers and sellers alike.
“One of the questions I get asked is: ‘Should I wait and see what the market does?’ says New York-based Corcoran agent Mary Elizabeth Smith.
Smith notes that consumers are nervous about market conditions against the backdrop of economic uncertainty fueled by inflation and the ripples it has sent through the mortgage environment.
“The more information that we can provide and discussions that revolve around data, the more they can understand and see the trajectory that the New York City market always rights and stabilizes itself,” Smith says. “Without data and information, I’m just giving them my opinion. Although they come to me for advice, I really need to have a foundation for that advice.”
Toward that end, Smith goes on to explain that she often leads with current market data and information during client consultations to “take some of the angst out of the process for (consumers).”
That’s a similar sentiment that Texas-based agent Elizabeth Riley of eXp Realty shares. She tells RISMedia that many of the questions she has received as of late focus on how the specific market is faring given current conditions.
“One of the questions that I keep getting is: ‘Do you think Austin is going to crash, or do you think there’s a bubble?’,” she says, acknowledging recent transitions in the housing market coupled with the current economic volatility as consumer concerns.
“You’ve got to understand why they’re asking that question and try to understand their knowledge and understanding of the market,” Riley explains. “We just have to be educated, knowledgeable, and ask a lot of questions and just not assume we know why they’re asking.”
In these cases, data and market trends specific to her area have helped guide Riley as she mitigates consumer worries about bubble bursts and market crashes.
Touting 18 years in real estate and having gone through the 2008 market crash, Riley notes that she has taken what she has learned during that era in real estate and implemented it into today’s market. As such, she sees recent shifts in the market as an opportunity for agents to thrive—if they are prepared.
“When you have the confidence, your clients are going to have the confidence that they’re buying at the right time,” Riley says.
She notes that leaning on resources and vendor relationships is another vital cog in addressing client concerns.
One of the most significant issues impacting the market is the low inventory of homes for sale, affecting market activity nationwide. That’s raised a few questions in the Massachusetts market, according to Jason Pincomb, an agent with Lamacchia Realty.
“Massachusetts inventory levels haven’t seen this low of supply since the 1940s,” he says, adding that one of the most significant questions he gets comes from sellers who are apprehensive about listing their homes.
“The biggest question I’m getting is from sellers saying, ‘I want to sell, but where am I gonna move to?” Pincomb continues.
Given the supply crunch that the market has experienced, Pincomb tries to find ways to buy his sellers time to find their next home with a couple of options.
“I have sellers afraid to put their house on the market because they have nowhere to go,” he says. “My ideal situation is I find a buyer willing to wait and give them the opportunity to find suitable housing. I expose them to our off-market list, and I’m constantly digging and looking for properties off and on the market, which means I’m door-knocking and doing whatever I need to do to find them the home they’re looking for.”
Key Takeaways:
- Lean on current and relevant data when addressing consumers’ concerns and questions.
- Before searching for homes, sit down and hash out your buyer clients’ financials (e.g., their budget, liquidity, bonus structures, etc.).
- Amid the uncertainty in the housing market and overall economy, connect with mentors and colleagues thriving during this cycle.
- Learn as much as possible and build relationships to help your business flourish regardless of market conditions.
- Be very intentional with the relationships and conversations you have.
