Based on our research, 9 out of 10 Realtor’s income would be affected during a slow real estate market. Out of the 9 agents, up to 95% would have less production and here is the interesting thing. The remaining 5% of these agents whose income were affected actually double or triple their income during this period. Most realtors know that there are opportunities during a slow market but why are most realtors business still affected? Here are the three things an agent can do today:
Target the Right Clients
Expired listings are one of the best sources of leads during a slow market. Up to 85% of these expired leads will list within the next 30 days. Almost half the agents I talk to already know how expired listing is a good source for a slow market. The next clients to target are For Sale by Owner (FSBO) listings. When the market is saturated with listings and transaction rate is low. FSBO listings will find it especially hard to sell. Last but not least, target For Rent by Owners (FRBO). After failed attempts to sell their properties, we see that there is a hike of homeowners leasing their property instead. Based on our agent’s results, one out of three listings that come from these leads will eventually sign with them.
Know the right Statistics & Tools to Help You
Listing agents are grabbing their hair because listings are getting very harder to sell. You will be surprise when I interview agents, most of them cannot tell me the statistics they need to know as a listing agent. To solve this, we recommend using Infosparks, a completely free tool available for MLS members. Just imagine the MLS having all these raw data about for most of the listings in the market. Well Infosparks gives realtors the ability to compile these raw data and make it easy to present it to their sellers. Here are some statistics to pay attention to. New and Active Listings will show you how many competitions are out there to compete with your sellers’ listing. % of Original price will show if sellers are reducing their original price to sell or selling higher than their original price. Average Price per sqft will give you a general idea on how do market is doing in terms of home value.
Do not be Afraid to Sign High Priced Listings
Most of the agents I talk to are reluctant to sign High Priced listings during this market because it is a waste of time and money since the listing will not sell in the end. If an agent has this dilemma, then they have bigger problems to take care of which is how to reduce price. Price Reduction skills and techniques will have its own article next week however, with current market being a buyers’ market and 40% of buyers buy directly from Listing Agent. You do not want to miss this chance. On the other hand, 30% of your Open House visitors are sellers which will open up a whole new source of lead for you.