It’s a challenging new market you’re in today. More than ever, you need to understand what motivates your client and how to push them through their process, so my Coaching Tip today is all about understanding market cycles. I’m going to tell you what’s happening in the current market and how you can make the best of it.
Most buyers are also sellers. That’s important to remember, especially for adapting sales and purchases to this changing market. Right now, anyone who bought in the last eight months probably overpaid compared to what the market would repay today, because any growth that happened in that eight-month cycle has probably come off.
An interesting dynamic is, if you sell first and then buy into the same market, technically there’s no difference in pricing. In fact, it’s probably cheaper to do the transaction today than it was eight months ago. The truth is, the market has been softening. If you bought back in November, your property appraisal will be lower now than it was then. The good news is, the price of that property you wanted to buy before is now trimmed as well.
As an agent, you need to assess the motivation of the consumer and understand why they are looking to buy right now. Given the new regulatory framework around finances, what we’re seeing is that it might take four, six, or even eight weeks to get finance approval. If the client is ready to buy, then it’s a good idea for you to explain why the timeline is occurring this way and encourage them to get their financing preapproved.
Understanding market cycles helps you adapt boldly to the conditions of the day. I want you to be able to get yourself back on the front foot towards building a great business, no matter what kind of market you’re in.
I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.