Prospecting – Using Quarterly and Year-end Reports to Build Relationships
During the past 5-6 years there have been tremendous market swings in real estate both locally and nationally, that have been cause for great concern for all homeowners. With prices dropping more than 50% in many markets, buyers and sellers have learned to focus very heavily on prices. Most buyers and sellers consider themselves to be knowledgeable about real estate market trends because of what the media reports. Yet, this knowledge is based on severely deficient data.
Analyze key market indicators to determine the best time to buy or sell. Keep in mind, that without a review of these indicators, the only way for a buyer or seller to make an informed decision is to track market activity. In addition to their personal financial security being impacted, most homeowners should be interested in tracking real estate trends. Remember, a recovery in real estate will lead to an improvement in the economy, which ultimately leads to greater productivity in every industry. In many cases, even greater job security for homeowners. Be sure to share data about the following four-key real estate indicators with buyers, sellers, past clients, advocates, and your sphere of influence. In other words, everyone you know.
A. Sales Activity (Demand)- Determine how many properties sold last year as compared to the year before. If sales are increasing, prices are likely to increase as well, If sales are declining, prices may continue to decline.
B. Listing Activity (Supply)- If the number of homes for sale in your area is increasing using the same year-over-year comparison as above, prices are likely to drop to absorb the additional inventory. If the inventory is dropping, it may not be long before prices increase.
C. Month’s Supply of homes for sale (Absorption)- The standard is usually around 6 months for average priced homes. This number increases as you move into the higher price ranges. If the supply is over the 6 month’s average, prices may continue to drop.
D. Average Sales Price (Value)– Compare prices last year with a year earlier. If prices have dropped, they may continue to drop in the future. If prices have stabilized or have started to increase, an increase in the future may be at hand.
The following script is ideal to use in every prospecting situation including face-to-face contacts, phone conversations, direct mail, and e-mail contacts. If presented properly, it will be extremely easy to obtain contact information, especially e-mail addresses. This script should be used once the topic of real estate comes up (these days, that’s in every conversation).
“Are you familiar with what’s happening in real estate in our area now? I’ve been doing extensive research on recent market activity and comparing my findings to what occurred last year and the year before. There are some really interesting trends developing. If you’d like, I’d be happy to share this information with you once I’ve completed my research. What’s your best e-mail address? Or, if you prefer, I’d be happy to e-mail it to you.” This script should be used dozens of times a week. Under no circumstances do you share the trends with them verbally. Instead, respond with I want to verify the information before I share it with you. But I’ll get it to you as soon as it’s completed.
There you have it, now go use it!