As we all read, the real estate market nationally is--finally--shifting, and in a positive way. I was asked to participate in the ActiveRain challenge to post how I will respond to this shift. So, here are my responses:
1. How will this shift affect buyer agents vs seller agents?
Seller (aka listing) agents will be the winners. As I've already experienced since the beginning of the year, I'm having problems finding inventory to match my buyers' needs. When they do find something, it is often already under contract or we have ended up in multi-offer situations. Take heed, home sellers, if you price it competitively, as many banks are doing, you may just end up getting an offer (or several) over your asking price.
2. What marketing strategies will you need to change?
I am targeting more sellers. I am doing so through my marketing and plan to do even more in the way of pursuing expired and FSBO listings. I will be prospecting expireds back a year, maybe more. As I have already done for one buyer, I will contact property owners who are not nor ever been listed, in hopes they will consider selling to one of my buyers or listing with me, since now and throughout 2013 will be a great time to sell.
3. What are you already experiencing that is causing you grief in your current efforts?
Getting lots of buyers and buyer leads without a commensurate number of listings/inventory to sell to them. Prospective sellers are still sitting on the fence waiting for spring or summer (and more competition) or are still upside down. I need to up my efforts to educate underwater sellers about short sales. Bank-owned listings (foreclosures) are still prevalent in our Montrose area real estate market and expected to continue to come on the market through 2013, adversely affecting home values; so, sellers expecting significant increases in value by summertime will be in for a dissapointment. Those who have expressed they will wait for the market to improve think it will happen in a few months or a year. In fact, it may take 3-5 years, or much longer. Home values in the Montrose area during the 2004-2007 spiked artificially and could not be supported. So, with recovery, we may just see the nationally historic 4% a year average.
4. What fears, if any, do you have about this change?
Absolutely none! Are you kidding? A positive shift after 6+ years of nothing but downward trends, foreclosures and short sales? I believe the shift I made to deal with this market the past few years has provided a strong foundation for me to do well and to implement quickly what ever changes I need to make to deal with this welcomed recovery.
5. What are the top three things a buyer's agent or seller's agent must do to be successful in the new market?
1) Know intimately your real estate market and be able to present statistics and market data effectively to both buyers and sellers.
2) Expand and stay connected with your database and referral sources, and ask for the business!
3) Get up to speed on and expand your technology knowledge and internet and mobile marketing--the consumer (sellers and buyers) have become so much more knowledgeable as a result of the Internet. The real estate agent needs to be where their prospective clients are and where they expect you to be.
This shift is taking place slowly but noticeably in my market on the Colorado Western Slope. However, I expect once it takes hold, it will continue to shift exponentially faster. The recovery is being noticed particularly by buyers now. Although I believe we are still bouncing a bit along the bottom, I have great expectations come this spring and into summer the recovery will be well underway. I can't wait and I will be ready!
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