The market has changed. This is true. And, depending on how long you’ve been licensed for, you may not have had much experience in working a transitional/buyers market.
For the most part, and depending on which geographic market you focus on, we aren’t seeing multiple offers anymore. DOM have increased, we are seeing prospective buyers visiting homes more than once as they try to make a decision, ultimately resulting in buyers taking their time when it comes to committing to a purchase. This is not doom and gloom. It’s a changing market and one that requires a different mindset and approach.
At my last sales meeting, I was reminded of one important truth that has been somewhat forgotten over the last few years of a busy sellers market. We need to work together.
Listing agents – How many of you are frustrated with your listings not selling? Ticked off when a buyers agent brings you a “low ball offer”? I hear you! But, have you taken a moment to put yourself in the shoes of the buyers agent?
After many years of losing out on properties, placing multiple (sometimes up to 15) offers before “winning” a house that wasn’t your first choice – the buyers finally have a bit of space to breathe and think about their decision. Combine that with changes in mortgage rules, new taxes and impending changes in politics, buyers are understandably hesitant. Buyers agents are finding that they are spending a lot more time on education, more time sending and trying their pre-sell qualified listings to the buyers before actually being able to get them out there to preview the homes (sometimes showing the same home on multiple occasions), all to move them one step closer to getting them ready to prepare an offer.
Why am I sharing this? Because our business etiquette amongst our peers has diminished. We are not on opposite teams and we need to start working together. Instead of getting defensive when a buyers agent brings you an offer less than what your list price is, try thanking them. Who knows how long they’ve had to work with this buyer to get them to commit. Don’t shoot them down! And don’t have your seller clients sign back at full price … unless of course you want to kill any possibility of selling the home.
Markets like this require respect, co-operation and negotiating power. So instead of getting angry and defensive, start by thanking the buyers agent for bringing the offer. Acknowledge how much work it must have taken on their end to bring their clients to the table. It’s ok that the price is low. Its a starting point. It’s called “negotiation” for a reason. Let them know it’s not close to the sellers expectations but that you are going to work with them and try and get a sign-back. Even if it’s in small increments, keep the process going.
Working together will ensure you are moving towards an agreement, not away from one.
What challenges are you facing in the changing market? What tips do you have for managing them? Leave your comment. I would love to hear from you.