tutas towne realty

Hi folks. During one of my interviews this year a listener posed a question that got me thinking. The question was "How do you learn your market?". It caught me a little off guard. Not that I don't know the answer but that someone in our business had to ask the question.

  • Knowing our market is what our job is all about.
  • Knowing our market is why buyers and sellers need us.
  • Knowing our market is what gives us confidence in our business.
  • Knowing our market is how we know where and who to market to.
  • Knowing our market is how we plan for the future.

Knowing our market is so important that if we don't know it we will surely fail. It's just a matter of time.

But having said all of that......"How do you learn your market?" is a very good question and one that I'm going to try and answer. To begin with, knowing your market means being able to answer the following questions if asked. There are many more but these will get you started:

  1. How many properties are for sale in your market today?
  2. What's the average price?
  3. What's the average days on market (DOM)?
  4. What's the median price?
  5. How many properties sold last month? Last 6 months? Last year?
  6. How many properties are currently under contract (pending)?
  7. How many of the sold properties were Short Sales? Foreclosures (REOs)?
  8. What's the "sold price to list price" ratio?
  9. What's the absorption rate (Active listings divided by a month's average sales)?
  10. Are values declining or increasing?
  11. Is inventory declining or increasing?

These questions are asking for essential market information that buyers and sellers will want to know. The answers to all of them can be found in your MLS system. I check my MLS hot sheet every day first thing in the morning. I want to know what is going on in my market. Make this a DAILY activity. And while you are at it go ahead and solicit the expired and withdrawn listings. Kill two birds with one stone. This one little daily exercise will give you market confidence AND you will also pick up listings. I've done this daily for 15 years.

By answering this next batch of questions you will become even more of an expert on your market. By knowing the answers to these you will be able to laser focus your marketing.

  1. How many total properties are located within your market?
  2. What's the average age of the folks that live there?
  3. Who's buying property there? Are they relocation buyers? Move up buyers? First time home buyers?
  4. What mortgage products are they using? FHA? USDA? VA? Conventional? Cash?
  5. On average how often do folks move OUT of your market?
  6. Where are they moving to?
  7. Who are the largest employers?
  8. What Real Estate Company does the most business? What agent? Listing side? Selling side?
  9. What percentage of business do they have?
  10. Who sells the most REOs? The most Short Sales?

Folks, you may have to dig a little deeper for the answers to these questions. Some can be found in your MLS. For others you may need to contact your Chamber of Commerce. Or you can check online at sites like ZipSkinny.com (just remember these sites will be far more accurate once the census is completed).

So that's it for now. Hopefully this post will get you started in the right direction. Let me know if you have any questions for me. Does this help?

***By the way, I'm looking to hire more agents in 2012. I offer a fee based arrangement. OR if you just need some information to help you in your business feel free to join my network at TTRealtyNet.com. It's FREE!

****First published in August of 2010.

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

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Post is included in group: Real Estate Rookie

37 Comments on Tips To Help You Learn Your Real Estate Market.

20 Most Recent Comments Displayed Show All

JAN
03
2012
167,707 Points 4 Featured Posts Outside Blog

When I was new - many years ago, my broker told me how to learn my way around - pick a neighborhood and see how much I could learn about it.   (This is on a much smaller scale than your list, of course.)   I was so new to the area that she suggested a neighborhood for me, and Hillandale eventually was my home, as well as my special love.   There's a serendipity story there.   (See my very recent post, http://activerain.com/blogsview/2688414/serendipities-let-s-start-a-group-to-share .) 

This is a very useful list.   Thank you.  
9:30pm • #19
880,348 Points 48 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
I am so glad that I subscribed to your blog! You just pound out great stuff! :)))
10:26pm • #20
221,610 Points Outside Blog

Right on my man, great post!  Confidence comes from knowng your market and helps you sell more houses, lol.
10:53pm • #21
813,646 Points 243 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Not only are you damn sexy, you are an intelligent, erudite fellow as well. Excellent summary. You have to drill deep. 

There is stuff beyond the numbers too, and you get it from doing business. 
10:57pm • #22
171,130 Points 1 Featured Post Outside Blog

Awesome list Bryant.  I will bookmark this blog to follow up on.  I need to work on my reports.
11:06pm • #23
1 Featured Post Outside Blog Called Shot Master

These are great tips that a lot of people, myself included, need to harness and focus on constantly!

 

Thanks for sharing!
11:35pm • #24
JAN
04
2012
152,733 Points

Our business requires constant learning, in order to stay ahead.

Good post, thanks for sharing it.
12:40am • #25
805,327 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

Hi Broker Bryant - This is a superb list of questions that agents should know the answers.
12:53am • #26
365,266 Points 6 Featured Posts Outside Blog Called Shot Master

Yep. These are the right questions BB. Knowing the answers to these questions is what sets us apart from the rest. It's really not rocket science, just a lot of research.
1:03am • #27
1,100,762 Points 52 Featured Posts Outside Blog Called Shot Master

All the details of properties... what's listed, for how much, knowing that one just had a price reduction. And even recalling details on listings you sold years ago so when they come again for sale, you have back ground, experience and expertise to share. Recall, all the little details that many wonder how you do it, it's done because you are in the right profession. Love what you do. And hustle.
4:53am • #28
1,952,070 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

AND, preview, preview, preview.

 
5:35am • #29
1,394,269 Points 28 Featured Posts Hit Router Called Shot Master

Bryant, real estate is very local and knowing the local market means you have the facts.  That's important for any professional.
6:26am • #30
Hit Router Attended Rain Camp

Hows the market.  I think the most important thing in your post was calculating the absorption rate of properties sold on a multi time frame analysis,  Thats the only true way to determine the direction of the market.

 

Good luck

 

Greg Gillespie
7:25am • #31
975,855 Points 6 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Reblogged with this intro...

A lot of these answers are part of MLS Stats. I like the way ZipSkinny.com is also mentioned as a tool along with the Chamber of Commerce. Knowing  your market is a component of continued sales. Great article to start the Realtor day!
8:05am • #32
975,855 Points 6 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

All those market reports we do get us well prepared for the data we need to know right off the top of our heads.
8:07am • #33
715,935 Points 69 Featured Posts Localism Sponsor Outside Blog Called Shot Master

BB - I also try to stay on top of proposed zoning changes, developments, and local news.  Running a community blog forces me to stay on top of theses things, so that I can report them. 
9:40pm • #34
JAN
06
2012
1,208,483 Points 193 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Previewing in my earlier days have given me a ton of leg up in the market when compared to other agents who do not. These days, not so much time to do so, but on the hold, I'm seeing alot more houses (just with clients) too these days.
8:56am • #35
967,426 Points 60 Featured Posts Outside Blog Called Shot Master

Bryant... you have given lots of excellent ideas.  But one thing I was surprised you did not mention... was actually getting INSIDE of as many homes as is reasonable.

I think a great thing for a newbie agent... in addition to learning the things you suggest... is to preview perhaps three homes each and every day... or maybe every other day... depending on what works.  I only say three rather than five or ten because to look at too many... just for the numbers... well, for many Newbies... they all tend to run together if you try and see too many.

I have also used the "preview" idea when I am out with buyers and we have scheduled homes to see, and we come up to one, and the buyer says... "nope... I don't want to go in."  I will at least try... and say... "well, could you do me a favor and go in... just for me.  Seeing homes for me is the best way I can keep my knowledge of the current market up-to-date.

They usually say ok... which gets both of us into the home... and also does not tick off the seller by us not showing up.  Just some thoughts...
3:01pm • #36
JAN
08
2012
328,773 Points 5 Featured Posts Outside Blog

Lots of great information that you've provided and I am following your expired listing advice. Thankyou.
8:52am • #37
JAN
15
2012
200,780 Points

Great list - I also try to preview as many homes that I can.
1:15pm • #38

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Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

Poinciana, FL

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Bryant Tutas-Tutas Towne Realty, Inc

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