The housing market has a lot of particularities and you, as an agent, is expected to know every aspect of it. Even if you deal exclusively within the Commercial or Industrial real estate market, you must have quick answers to home buyer’s and home seller’s questions like: what are the best houses for sale near me? What are the fast-sellers in this area? And the slow-movers? What were some of the most recurrent real estate trends in this community?
An agent should be constantly perfecting his/her local market analysis so he/she can be at the right time and at the right place, getting the best deals for his/her clients. With that in mind, here’s a quick Real Estate Agent Guidebook that will help you understand the Real Estate Market, its Trends and Home Values:
Find the “Fast-Sellers”
Some houses for sale go almost instantly, while others take a lot of time to sell. That’s how the housing market goes. But you should investigate probable reasons behind those real estate trends. Be on the lookout for recent “fast-sellers” in the area. What caused the quick close? Was it the Real Estate Agent’s marketing efforts? Nowadays internet is a key factor for sales; Are you a social media savvy agent? Or was it the fact that the real estate agent put together an unforgettable Open House? Hosting an open house can be a great marketing tool to get clients to make an offer; Optimize your next Open House and go for the kill!
But, perhaps, what made the house sell so fast was neither the agent’s digital skills nor a result of an awesome open house, but the practical fact that its selling agent made a bad market analysis and listed the house under market price? Or was it because the house is located close to some of the Best School Districts in town, or near Hipster food markets, trendy restaurants or boutique shopping centers? Knowledge is power! Find out.
Identify which houses have been on the market the longest
You should also look for those stale houses for sale that have been sitting on the market for a long time. Are they overpriced? Outdated? In need of repair? Doing that kind of market analysis will give you a clearer indication of how to price your own listings according to home buyer’s demands, helping you better position yourself and your clients for better deals.
But don’t necessarily avoid anything related to “hard to sell” properties! Some properties can take longer to sell exactly because of a potential lack of specialized agents for that niche. Would you be suited to supply this demand? If so, you might be on the verge of a big break in your career; think about that! Here are two interesting niches you could look into: Vacation Homes and For Sale by Owner (FSBO).
Know that Real Estate Market’s History
If you want to make housing market predictions, look back at it’s history. Just like the stock market, the real estate market can go through cycles of booms and busts. The housing market tends to fluctuate from overvaluation to undervaluation depending on home buyer’s behavior and perception of value, interest rates, demographic growth and other conditions. If you try to go a few years back to track how all those factors have been behaving, you will get a broader picture of where the real estate trends are pointing to and will make better housing market predictions.
Envision the future
Sure, being aware of real estate trends is important for an agent to stay relevant within the industry. But a real estate agent’s big break happens more often when he’s looking at what comes next. Concurrently with the available houses for sale, be aware of the types of development projects currently being executed. Are they industrial, commercial, or mainly residential? Is the town perceived by its population or portrayed by the media as an “up and coming” location? Communities with booming growth in retail, hospitality, and commercial buildings are likely to see a spike in the real estate market, as it makes the community more desirable to live in. If you get to the future faster than your competition… the sky is your limit!
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