In recent years, the housing market has become quite the topic of interest. Now, even people outside the real estate industry have probably heard the term “buyer’s market.” But what does it actually mean?
Simply put, a buyer’s market is what happens when the supply of properties exceeds the demand for real estate. In other words, there are plenty of homes for sale and not as many interested buyers. When the real estate market is in this state, the buyers have power over the sellers because the market must meet their demands.
During a buyer’s market, the cost of homes typically decreases, and they are likely to stay on the market for an extended amount of time. These conditions create competition amongst sellers to attract qualified leads. Sellers often drop their prices in an attempt to attract buyers and are more likely to negotiate offers to make a sale.
As the housing market ebbs and flows, sellers need deliberate action to close the deal. Here are a few tips to succeed in real estate, even during a buyer’s market.
Inspect and Make Repairs
To get started in a buyer’s market, take the time to complete the home inspection process before you list the property. In doing so, you’ll know early on what issues are likely to come up during the negotiation process. Armed with the correct information, you can make any deal-breaking repairs before the home is listed. Furthermore, you will be aware of any repairs that could lead to a price reduction.
If any major repairs are required — for example, to the water heater or roof — get them taken care of as soon as possible. Otherwise, you may need to lower the asking price later. Pay close attention to the outer appearance of your property as well. In a competitive market, the property must make a great first impression. Sprucing up the home’s paint job and repairing window screens can significantly affect the property’s closing price.
Maximize Marketing Tactics
When the market isn’t operating in your favor, now is the time to pull out all the stops to attract a higher volume of qualified leads. Leverage social media to increase the property’s visibility in the marketplace. 90% of home buyers search online during the buying process, which is crucial in attracting serious buyers. Ensure that the property you’re trying to sell is staged for optimal appeal, and invest in a professional real estate photographer to highlight the home’s best features. Real estate posts on Facebook and Instagram are most effective for appealing to millennial homebuyers, who comprise 65% of all first-time buyers.
Combining a solid social media presence with the power of experienced cold callers is another way to ensure success in a buyer’s market. Professional cold callers have perfected the process of warming up cold leads and inspiring a buyer’s interest. They are experts in the art of enticing your ideal customer with smooth conversation skills while highlighting the benefits of your property and services. If you’re serious about closing the deal in a buyer’s market, professional cold callers are an excellent way to support your efforts.
Price Your Home Competitively
Pricing a property in a buyer’s market requires careful strategy. If you price your home too low, it can limit your overall profit. However, pricing the house too high will make it near impossible to sell. The easiest way to determine a fair price for your home is to compare other homes recently sold in the same area. Find houses that are similar in size and location to get an idea of what you can expect to receive for your property.
When creating a pricing strategy, you can place the home “at market value,” “below market value,” or “above market value.” Pricing the home at market value means pricing the house at what the market says is fair. Homes priced below market value do so to lure in eager buyers. Although it is uncommon, some agents choose to place a home above market value. However, choosing to list a property above the market value typically isn’t effective in a buyer’s market and can impede your ability to attract buyers.
Offer Buyer Incentives
Another way to succeed in a buyer’s market is by leveraging buyer incentives. Buyer incentives are essentially rewards for doing business with you and can prove an excellent way to stack the odds in your favor. Consider offering the following buyer incentives to seal the deal:
- Include add-ons: First-time buyers are more likely to be receptive to add-ons they may not have otherwise thought of, such as a home warranty, lawn equipment, or even window treatments. First-time homebuyers make up 43% of the market, so it’s in your best interest to appeal to them. If a qualified lead appears interested in a specific add-on, add it to the negotiations.
- Pay closing costs: Closing costs are the costs required to finalize a mortgage, and they range from 3% to 6% of the total loan amount. In a cool market, buyers often request that the closing costs are paid partially or in full. Buyers that don’t have much liquid cash will find this offer especially attractive.
- Offer to fund repairs: Since you’ve probably already completed a home inspection, we recommend that you offer to pay for any significant repairs before the deal is closed. Another option is lowering the listing price to mitigate the cost of repairs.
Call Motivated Sellers
The housing market may not always be in your favor, but don’t let that stop you from reaching your sales goals. With the right tools, incentives, and strategy, you can still succeed in a buyer’s market.
If you’re looking to generate more qualified leads for your real estate business, consider recruiting a team of experienced cold callers. Call Motivated Sellers is an American-based real estate cold calling service, complete with a highly skilled sales staff. Leave the hard work of vetting your leads to us so that you can focus on closing deals and increasing profits. By partnering with Call Motivated Sellers, you can expand your reach without losing that human touch.
Ready to uncover new leads for your real estate business? Contact our team today!
Marketing by Joseph Studios