As the real estate market switches from a Buyers' market to a Sellers' market or vice versa, can be a challenge with younger agents. Anybody that entered the business around 2007 or later (just still being a Realtor shows you have been doing something right), will begin to see a market that they have never witnessed before. Hopefully the market does NOT get overheated as it once did prior to the bubble. Without sub prime lending, it is unlikely this will happen. However the market is changing from an extreme Buyers' market toward a Sellers' market in my area. With any luck, there will be a pause and the market will settle into more of an equilibrium. However it is impossible to generalize the entire market as it varies with price points, locations, style of homes, etc. even within the same geographical area.
The market shift will lead to Realtors finding Buyers to be more plentiful. This will put a premium on Sellers and quality listings. Buyers' agents will need to be more responsive to their Buyers' requests because homes will sell faster. This doesn't mean, that Realtors cannot have a life as well. However waiting for a few days can lead to missed opportunities. Another factor is the best Buyers' agent will embrace technology to send new listings to their clients as soon as they hit the market. This way your clients will at least have a chance to see the homes as they are listed. Nothing is worse than a Buyer calling 3 days after a home hit the market that met their needs to find out it was under contract and they never even were made aware that the house came to the market.
Sellers' agents need to understand the demand when setting listing prices for their clients. As the market heats, the demand will drive up prices. It is simple supply and demand. If a community usually has 5 homes on the market and nothing is out there, this must be considered when taking a new listing. Appraisals will still be difficult, but the Realtor truly needs to understand the market when consulting about the asking price of home with their Sellers.
My marketing strategies do not change in any market. I believe that it is always best to cast the widest possible net of exposure for Sellers. If the market is a Sellers' market, that doesn't mean that marketing is not required. All marketing should be done as quickly as possible and put in place as soon as any home is listed. If there are multiple offers, that is a good thing for Sellers. However the best offer is what we are looking for. That doesn't just mean the offer with the highest price. Other factors come into play as well when evaluating offers.
I really haven't experienced any grief because I have been through this market before. Some Buyers will become frustrated with lack of inventory and selection. However the good news in my market is that new construction in has come back into the market place. Therefore there are some new homes for Buyers to chose from as well. There are some multiple offer situations and they can become frustrating. However they are part of the business. As Realtors, it is our job to manage expectations. If there are 3 offers on a home and a Buyer wants to make an offer 5% below asking price, that is fine to try. However it is a good idea to make sure they clearly know what they are up against when preparing the offer.
I do not have any fears about the change. Real estate is like any other business. Adapt or fail. I think the last 5-6 years has honestly been as bad of a real estate market in recent history. After succeeding in that time, anything moving forward should be easier than what we have just had to deal with. Being too busy is much better than the alternative. Just keep a positive outlook and work hard and the business will be there.
The top 3 things for a Buyers' agent in my opinion are: 1) Embrace technology to help search for homes. Take advantage of auto-search systems. 2) Manage your clients expectations of the market. 3) Be available and responsive to your clients' needs in a timely manner.
The top 3 things for Sellers agents in my opinion are: 1) Get as many nice listings as possible. 2) Aggressively market every listing in your inventory. 3) Push the asking price as high as possible, but make the Sellers' aware the house will still need to be able to appraise.
Let's all home the market settles in a state of equilibrium. A skewed Buyers' market or a skewed Sellers' market can create stress for our clients and ultimately increase our stress levels as well.