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While the residential real estate market has seen a bidding war in recent years, 2022 is more business as usual, with the rate of inflation slowing somewhat. But don’t be fooled, it’s still a very busy real estate market, especially in geographic areas that are considered “hot”, and agents need to keep up to date constantly.
Here are some tips on how to close more deals and grow your real estate business in a highly competitive market.
1. Work on your goals
Your goals for the year are set, whether it’s to be the number one real estate agent in a given area and/or collect x dollars from real estate sales. To achieve your goals, it’s important to measure the results of your plan—from your marketing collateral to your networking and relationship-building strategies. Review your plan regularly and make adjustments as necessary to account for economic changes, such as interest rates, which may affect the market and your sales forecasts.
Related: 7 ways to set and track goals for maximum success in 2022
2. Collaborate with other professionals who can boost your referrals
For example, try aligning your business with an insurance agency or brokerage firm that specializes in providing quality homeowners insurance for luxury homes, especially in tough markets like Florida and California. By helping customers meet their insurance needs, you provide a value-added service that can help close more deals.
3. Do your homework
To be successful in the real estate market, make sure you are prepared each day by keeping up to date with the latest market trends. Try to research new deals and programs that become available in your area daily and learn the ins and outs of the properties. Match the needs of your customers with the properties for sale and offer them a new perspective.
Related: What to expect from the real estate market after the pandemic
4. Show confidence in buyers and sellers
Let buyers and sellers know you know what you’re doing. They are great at helping people find their dream home while helping others transition to the next phase in their lives. You need to know you’re nailing a deal, especially when there’s a lot of competition involved. Everyone loves a confident person who is willing to help them get what they want.
Related: The 5 steps to building unshakable trust
5. Listen to what the buyer or seller needs and wants
Paying attention to what your buyer or seller is looking for in a deal sounds easy enough, but often realtors approach a sale with preconceived notions based on comps in a particular area and jump straight to discussing numbers. Get to know the needs and wishes of your customers.
For example, find out what type of home buyers envision living in—aside from knowing their square footage requirements and the number of bedrooms they want. Is the kitchen important to the buyers, as this is where the family often meets to do their daily routine? Or maybe the buyers love cooking and dream of a real chef’s kitchen. Are the buyers working from home and need a place to set up offices? Do shoppers want a neighborhood that allows them to easily walk to nearby cafes, restaurants, and local shops? How far are shoppers willing to commute to the office?
When working with luxury home buyers, remember that they tend to be experienced homebuyers. Buying a home is based on their desires and aspirations, not their needs. They want to find a home that fits what buyers want, one that fits into their daily lives. They’re not just buying a house, they’re improving their lifestyle and looking for an experience.
If you work with luxury home sellers, ask to hear their stories and how they relate to their properties so you can share their amazing experiences with potential buyers. They also want potential buyers to connect with these stories and imagine creating their own stories in their new homes.
If you really listen to what your customers need and want, you can likely narrow the search and show them homes that hit the mark the first time. There is nothing more frustrating for buyers than stepping into a potential home only to find it doesn’t meet any of the criteria on their checklist and wish list.
6. Know the area as if it were in your own backyard
Location is everything, and most buyers have strong opinions about where they do and don’t want to live. While real estate agents know the areas they are marketing in, dive even deeper so you can paint a picture and bring the area and neighborhood to life. For example, if your buyer likes to surf, find out any great surfing spots around so you can share the information with him or her. Take the buyer to a few places so he or she can immediately imagine living in a home a stone’s throw from the surf.
Related: 4 Ways Real Estate Professionals Are Getting Leads Through Digital Marketing
7. Be reassuring
When buyers have doubts about the financial investment involved in buying a particular property, talk to them about their problems, doubts, and pain points. Address any issue while being reassuring at the same time. If they get cold feet, remind them what they originally loved about the property. You may not be able to close that particular deal, but don’t close the door on later selling another property to the buyer. Keep in touch with your customers – they are your best advocates.