Do you believe that most people are inclined to enter the real estate market based solely on a capitalist venture? Or that life circumstances that call for relocation are the drive to move? The correct answer is, a little bit of both. The trick to investing, in any form, is to sell high, buy low. When you throw financing into the mix, this can change that equation. For the last couple of years, this has been the key marketing campaign for the majority of the industry – prices are high, but the interest rate offsets it in such a way that the 15-30 year total investment makes it worth it. To an extent, this is true! But we can dig deeper.
It’s true, low interest rates were able to combat rising sales prices for the past 2-3 years. Now that interest rates are on the rise, and currently sitting right around 5.25% (30 year conventional), how does this impact the consumer’s decision to purchase a home? News flash folks, this is still very good. Ask your parents what their first interest rate was. This brings us to another heavily advertised slogan that the general public hears on a daily basis. INVENTORY IS AT AN ALL TIME LOW, ARE YOU LOOKING TO SELL YOUR HOME? This statement, again, is true. However, look at that wording. Does that seem the least bit personal? Does that give off the message that you are looking to bend over backwards and serve a family looking to make one of the largest financial decisions of their life? The statement is true, but the consumer needs to know more about you, and your business before biting. Full picture.
How did you acquire your first client in real estate? How do you convince people to move when the climate of the world is (insert your tasteful word here). The answer is quite simple, almost silly. It is not my job to convince people to move. I have no business doing it. It is my job to educate on the climate of the real estate market. It is my job to display professionalism and provide a full picture of the integrity of my business. It is my job to serve the residents of the Greater RVA area better than anyone else claiming to do so. Will I be fortunate enough to represent every person looking to sell or purchase a home here? Not by a long shot – but there is plenty of business to go around. One person could not possibly corner this entire market. But I will (and do) stand out to the population of people that are looking for a new standard of excellence to help their family navigate a move from start to finish, and past that. They are looking for a resource that is everything homes. Everything contractors, everything handyman, it’s a lot!
Convince me to move. When I am asked this, it is typically by a prospective seller that I am not meant to serve, at least not yet. The response is direct and worded with care. Of course, capitalism plays a massive role in the market, in life as a whole. A good listing appointment will cover an all inclusive net profit for the seller, then the decision is in their court. This is not an industry for a hard salesman/woman, the belief is that age is over. The consumer wants someone that will actually look out for them. That will educate, but not push the limits. That will most likely confirm what they were organically going to do, with the assurance they are in good hands to navigate.
“People that can’t do, teach”. In my opinion, it could not be further from the truth. People that take the time to educate, establish relationships. They establish something that lasts. Don’t be convinced to move, and if your primary message to your clients is to “make them move”, stop! Think about why we entered the industry. It was not just a capitalist venture either, I hope.