3 Tips On How To Know The Market Better Than Your Competitors

By
Real Estate Agent with Joe Manausa Real Estate 8508880888
https://activerain.com/droplet/5l4n

For those of us who use content marketing as the foundation of lead generation, "expertise" is often the commodity that we are selling. How many home sellers and home buyers are out there trying to find answers to their questions, and how often are we the ones providing the answers? Well, I can tell you from great experience that oftentimes, the answer to their question has something to do with local housing market conditions.

There are many ways to "know the market" when you are a real estate agent and most of us who have seen a few thousand homes or so feel like we have a pretty solid grasp on our local real estate market. But there are some simple hacks that you can prepare monthly to give you insight that will far exceed what any other real estate agent is doing.

Keep A Record Of All Home Sales

The first tip is to keep a record of all home sales in your market. This might be a bit intimidating at first, but I promise it is far easier than you might expect. All you need is a spreadsheet program like Google Sheets or Microsoft Excel. Some of the fields that you might want to track are the ones people most often ask about (location, bedrooms, bathrooms, square footage, acreage, pool, frontage, etc.).

If you take the time each month to download home sales to your database, you can create reports that update themselves over time. I started my spreadsheets back in 2003, so imagine the information that I have that nobody else has? But even if I were to start today, I can download all home sales in my MLS, which means my database would have more than ten years of records (plenty for my needs).

Create A Visual Representation Of Key Data

They say a picture is worth 1,000 words, and they are not wrong. Having good data is critical to understanding the housing market, but creating a visual representation of that data is the key to being able to understand and explain housing market conditions better than your competition. While this is not something that will happen for you overnight, it certainly is something that you can master if you commit a little time to the effort.

I started setting up my market reports and spreadsheets more than 15 years ago, and over that time I have developed hundreds of graphs that visually depict an element of current market conditions. This is great for content marketing because I can publish a graph and an explanation of what it means. If I publish on a regular schedule, I can develop a following that will ultimately result in sales from a customer base that truly believes in my expertise, even before we meet. Can you imagine working with people who like and trust you before you even meet?

Understand The Most Critical Pieces Of Market Intelligence

Of all the several hundred graphs and charts that I have on hand, I believe the most important ones directly relate to the supply and demand of homes for sale. You see, nothing impacts current value change more than the relationship between the supply of homes for sale and the current rate of demand, so my best intel comes from graphs that relate this information to myself and my readers. Here are a few examples:

Year Over Year Home Sales

One way to have a clear understanding of the demand for homes in your area is to monitor year over year home sales. This graph is simple but highly informative.

Year Over Year Home Sales Report

In the graph above, each month is compared to the same month the year prior. For example, September 2019 is compared to September 2018, March 2015 is compared to March 2014, etc. The change between months is plotted as a percentage (green if positive, red if negative). As you can see above, year over year home sales in September soared 30% higher. Demand right now is good!

Year To Date Home Sales

The year over year report is great, but to get a feel for how things stand, we also need a cumulative impact from sales each month.

Year To Date Home Sales In Tallahassee Florida

In the graph above, we see the total number of homes sold each year from January through September. This is a simple visual, but it also shows your reader something nobody else can tell them ... just how strong the current market is compared to past years. The graph above shows that 2019 is only a handful of home sales behind 2018, making it the fifth strongest year for homes sold going back to 2002.

The Relative Supply Of Homes For Sale

Are you in a seller's market? A buyer's market? Split? How do you know? Believe it or not, tracking all sales and listings in your market area allows you to produce an answer to this each month that far surpasses anything your competition can deliver.

Months Of Supply Of Homes For Sale

In the chart above, I show the non-seasonal months of supply of homes for sale for each price range in each quadrant of the Tallahassee real estate market. I refer to this as the "relative supply of homes," as the months of supply show current supply at the relative rate of demand. Anything over 6.0 months of supply is a buyers market, anything under 6.0 months of supply is a seller's market. As you can see, Tallahassee is in a strong seller's market (4.1 months of supply), but it is still a buyers market above $450K.

What's so great about this chart is that it shows sellers and buyers how negotiations will fare. Even better, this is a chart that auto-populates in my spreadsheet, meaning all I have do is bring in the new sales and the new listings, and it updates itself each month.

How To Get Started

Before you begin downloading the listings and sales from your MLS, I would first recommend you get comfortable with MS Excel or another spreadsheet program. Go online and take some tutorials. Learn how to graph data and customize those graphs to become marketing pieces so that they convey market information PLUS information on you (branding). Learn how to use pivot tables (confusing at first, easy once you do several of them).

Once you are comfortable with the spreadsheet application that you will use, take some time to determine what fields you want to track. While "the more the merrier" was my first thought, what I have found is that many of my spreadsheets are slow and burdensome, carrying too much data that I will never use. If I could go back to the beginning, I would track far fewer fields from my MLS.

Having learned the application and chosen your desired fields, all you need to do now is download the information from your MLS. It is important to create a recurring task to update your spreadsheets each (month or week). If you do a small bit each week, you'll find yourself learning more about the market than you ever imagined possible.

Good luck and tag me in your articles when you start writing about market reports. I would love to see what you've done and I'm always looking for new ideas and methodologies for tracking the real estate market.

Some Of My Content Marketing With Market Report Visuals

The following links take you to some of the graphs that I used in my content marketing plan in the past six weeks:

 

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Topic:
Real Estate Market Trends
Location:
Florida Leon County Tallahassee
Groups:
Realtors®
Bananatude
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Hyper-Local
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Tags:
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Rainer
57,528
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Some outstanding information, thank you Joe Manausa When we engage in educattion based marketing, we demonstrate expertise without sounding like a know it alls to our idela customers.

Oct 15, 2019 04:59 AM #1
Rainmaker
1,189,195
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you Leanne Smith and you are so right! They are out there, we just need to attract them.

Oct 15, 2019 05:01 AM #2
Rainmaker
1,992,634
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Joe Manausa - if you can't measure it you can't manage it.  When you do then you are about to educate and show credibility.

Oct 15, 2019 06:25 AM #3
Rainmaker
1,189,195
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

You are so right Grant Schneider ... and it's not hard to do.

Oct 15, 2019 06:37 AM #4
Rainmaker
748,796
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Ha! I just posted about how the numbers do not lie!

Good info, although consumers don't all digest so much so easily . . . bullet points!

Oct 15, 2019 07:25 AM #5
Rainmaker
1,189,195
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Good timing Candice A. Donofrio "Numbers don't lie. Women lie, men lie, but numbers don't lie." -Max Holloway

Oct 15, 2019 07:30 AM #6
Rainmaker
2,600,385
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Those are three very important points, Joe.  I especially like the first one about keeping a record of all sales.  I have done that.  A couple of years ago, I went to a crab feed.  I bumped into buyers I had sold to about 24 years prior.  When they gave me their names, I said, "I remember you.  Large corner lot, at 791 Larch Lane.  Their mouths dropped.  I had always hand penned addresses on marketing materials to past clients.  The process engrained the names, faces and addresses onto my memory.  

Oct 15, 2019 04:24 PM #7
Rainmaker
2,600,385
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Joe, on having this blog FEATURED in the Old Farts Club group!  

Oct 15, 2019 04:25 PM #8
Rainmaker
1,189,195
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Holy Moly Myrl Jeffcoat that is a heck of a memory. I can't remember what I did yesterday!

Oct 16, 2019 03:35 AM #9
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Rainmaker
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