How To Become The Expert In A New Real Estate Market?

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690
http://actvra.in/558f

Hi folks. As you may know I have just entered a new market area. As the co-broker of Garden Views Realty in Winter Garden Fl. I am now starting from scratch in a  new market.

So...How Do You Become The Expert In A New Real Estate Market?

  • 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 Become The Expert In A New Real Estate 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 hotsheet 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 And while you are at it go ahead and solicit the expired and withdrawn listings.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?

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

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Margaret Woda 06/18/2017 07:42 AM
Topic:
Real Estate General Information
Location:
Florida Orange County Winter Garden

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Rainmaker
287,166
Diana Dahlberg
1 MONTH REALTY - Kenosha, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great Stuff!  Glad I had a chance to read this blog.  I will bookmark for future review and re-read.  Thanks!

Jun 12, 2017 09:18 PM #36
Rainer
102,230
Jerri Schick
ThirdCoastRealEstate.com - Galveston, TX

Hi Bryant! I know you!  I have only been doing real estate for the last 12 years and I hope to be doing this for the next 20 years at least! I can honestly say that the most important tool in my belt for being able to be the neighborhood expert and accurately estimate a property's real value is the many BPO's I have performed over the last 10 years! There is nothing like Digging Deep into a property, neighborhood, market and current economic conditions (plus RE Intuition that you can FEEL) to allow you to most accurately anticipate what a property will sell for!!! I feel so fortunate to be able to get inside information on the properties that are coming up for sale and to be able to track their progress through the sales process so that I can include them in the next CMA I do for a prospective seller or buyer so that they get the best sales/purchase price possible. That is my way of becoming a neighborhood expert!

Jun 12, 2017 10:20 PM #37
Rainer
102,230
Jerri Schick
ThirdCoastRealEstate.com - Galveston, TX

Great post by the way. Something that only is revealed after time in the industry. When I first started in RE I had no clue what was going on, or what to do to manage it!

Jun 12, 2017 10:25 PM #38
Rainer
108,310
Sam Kader
Pacific Coast Financial LLC - Seattle, WA
Real Estate and Mortgage Broker

Thanks Bryant! Great post. 

Jun 12, 2017 10:58 PM #39
Rainmaker
141,777
Pete Baranowsky Jr
The Castle Team at Maximum One Realty Greater Atlanata - Dallas, GA
Selling Good Homes, Priced Right, Quickly

Thank you Bryant Tutas , great info that is always new while always changing.  All the best in your new location!

Jun 13, 2017 04:47 AM #40
Ambassador
474,933
Tracy Santrock
Fonville Morisey/Santrock Realty Group, Inc. - Cary, NC
Raleigh - Cary Realtor

Bryant you are an expert in real estate so putting yourself out there and finding your niche through your Marketing will make the world of difference! It's like riding a bike - once you know how to ride your bike you just pull off the training wheels and ride it again :)

Jun 13, 2017 04:57 AM #41
Rainer
171,683
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

Great post. This information is very valuable and it's also what separates a good agent from a great agent. Good luck in your new surroundings.

Jun 13, 2017 04:59 AM #42
Rainmaker
234,985
John Wiley
Jones & Co. Realty - Cape Coral, FL
Lee County, FL Real Estate GRI, SRES,SFR,PSA

Great information for new agents and seasoned agents.

I believe that to be the expert you have to know the market inside and out.

To do that effectively you can not be an expert in everything.

I see the need for agents to move to the niche market that fits them and then apply your super list to that market.

Jun 13, 2017 05:32 AM #43
Rainmaker
1,253,318
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Good to see your smiling face again. Congrats on the featured post!

Jun 13, 2017 06:23 AM #44
Ambassador
2,357,777
Anna Banana Kruchten, CRS
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Bryant great to see you in the rain! Congrats on your new venture - pretty exciting stuff.  I figured something was up after I kept seeing your new and improved pics on FB.  All excellent questions BTW!!

Jun 13, 2017 09:03 AM #45
Rainmaker
26,949
Christina Steinhaus
Coldwell Banker Residential Property - West Palm Beach, FL
Real Estate Agent serving the Palm Beaches

Excellent post!  Thank you...saving!

Jun 13, 2017 10:09 AM #46
Rainmaker
451,445
Elva Branson-Lee
Solid Source Realty GA - Atlanta, GA
CDPE - Atlanta Real Estate & Short Sale Agent

Broker Bryant! Thanks for these tips. Good advice, as always.

Jun 13, 2017 10:09 AM #47
Rainmaker
296,929
Kim Peasley-Parker
AgentOwned Realty, Heritage Group, Inc. - Sumter, SC

Great post Bryant and so true.  Amazed how many agents are unaware of the market and parts of it.  I am floored when I go into a listing appointment and after 30 minutes the sellers tell me I have told them more in 30 minutes than the prior agent did in 6 months!

 

Jun 13, 2017 11:15 AM #48
Rainer
5,700
Sue Mailey
Coldwell Bankder - Lakewood, CO

Thank you, Bryant! I'm a new agent and have been searching for this very checklist! So important to know one's stuff...

Jun 13, 2017 12:16 PM #49
Ambassador
1,659,603
Tammie White
(615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN
Franklin Homes Realty LLC, Franklin TN

These are the same questions I tell sellers to ask prospective agents. If an agent can't answer these, then they don't deserve the listing. Sorry...

Jun 13, 2017 02:16 PM #50
Rainmaker
1,131,930
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

I hope it helps!

Jun 14, 2017 03:29 AM #51
Rainmaker
301,578
Brad Rachielles
CENTURY 21 Prestige Properties, Ca BRE# 01489453 - Upland, CA
REALTOR, CDPE, Upland, CA

Bryant,

For more demographics on a certain city, Wikipedia has surprising amount of numeric data about population, incomes etc.

Best of success. Changes like this are always challenging and fun!

Jun 15, 2017 09:15 AM #52
Rainmaker
488,121
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

I thought I'd read and commented on every one of your blogs since your return, but apparently not.  You've always been a great blogger to read and I'm glad you are back with great posts, advice and insight. You will do great in your new location. -Kasey

Jun 17, 2017 03:25 PM #53
Ambassador
1,010,595
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

This is just what I needed to give me a kick in the derriere and consider jumping into the Delaware real estate market. I am so unimpressed by what I've seen in my new comunity, I know I could help a lot of people here.

Jun 18, 2017 07:41 AM #54
Rainmaker
772,657
Jan Green
HomeSmart Elite Group,Scottsdale, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Good for you for starting in a new market.  I almost didn't recognize you :)  

Thank you for sharing this powerful list of data that needs to be reviewed daily. I so agree and do the same, but I like your list better.  My market is so big, 4 million folks, and over 400 square miles so I have to break it down to be able to separate each city in the Phoenix Metro Area.  A ton of information!

Jun 20, 2017 07:07 PM #55
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