Today I will discuss the importance of the clear, educated mind needed to really navigate this market and win. Not just for your clients but for you the broker. Any confusion or lack of understanding will create hesitation, regret, and inaction… 3 traits you want to avoid at all times.
"The CONFUSED MIND SAYS NO."
Two weeks ago, one of our original founders of Jameson, Harry Huzenis joined our commercial meeting. Harry has been in real estate brokerage, development and investments for over 4 decades and has transacted in the billions. He was discussing the current state of the real estate market and made an incredibly eloquent comment as it relates to the current mindset of our clients. He said "A confused mind says no" and went on to explain that if you do not educate your clients on the market "in the moment" in a way that they understand it, they will not have the right information to make a good decision. The market conditions are getting more difficult for buyers due to lack of inventory, rising interest rates and a broader increase in inflation. You and your clients will start to hear the clickable, drumbeat of an impending housing crash and so it is imperative to explain what is truly happening in your micro market in the moment. We can't predict the future, but we can give current stats. Your clients are relying on you for this, and you need to know the information inside and out and update your knowledge weekly:
Talking points for buyers:
- Initial consultation is key: Are they ready to buy this week if they find what they like? Explain what it is taking to write a "winning" contract
- Inventory level in your micro market (price point and geographic location): Months of Supply. (5 to 6 months is a normal market)
- Average Days on Market
- Closed price vs. List Price
Note: Watch these numbers closely on the lower end of the price scale in the coming months. Interest rates and inflation has started to price new home buyers out of the current market.
If I buyer in this market is confused, they will say no. In this market, NO means they will hesitate and wait too long to act. Educate them.
A confused buyer says NO.
Talking point for sellers:
The same as with your buyer clients. If they are on the lower end of the price scale and are seriously considering selling, they may not want to miss this spring market.
- Pricing right is everything. If you price too high, it will still sit. Price it right and let the market work its magic.
- Inform your clients of your listing process -- from premarket to contract.
- Explain and educate them on what makes a "solid offer" and one worthy of their acceptance.
- Discuss their needs and concerns. Many sellers are worried about where they live if they do sell. Explain how the right buyer would be willing to give extended close and possibly a lease back. Most sellers don't know that this is even an option.
If a seller in this market is confused, they will say no. In this market, NO means they will hesitate, try to time the right time to list or not enter the market because they are nervous. Educate them.
Now, let's talk about you, the individual broker. I can tell you with certainty, that if you are not in sync (clear) with your 3-year vision and your quarterly goal, you will not do the work needed to move your business forward and win in this market. A confused mind says no.
A confused mind doesn't make the calls needed to stay in touch with their Hot List.
A confused mind doesn't make the calls and contacts to stay in touch with their Warm List.
A confused mind doesn't make the effort to consistently stay "Top of Mind" with their Top 100.
A confused mind doesn't make the calls to fellow brokers in the market to source inventory.
A confused mind doesn't maintain relationships with strategic partners locally and around the country to maximize referral opportunities.
A confused mind doesn't educate their clients consistently about their current micro market.
So back to the 2 questions I ask all of you to be able to answer intimately:
How do you want to live?
Who do you want to become?
Build a 3-year vision around being able to answer those questions and your mind will not be confused. It will be clear. When you are clear, you will become a better broker constantly improving yourself and not waiting for something or someone to solve your lack of action. When you are clear and in sync with your vision, those calls, those emails, those DMs and those text messages will be much easier to make.
THE CONFUSED MIND doesn't understand the importance of a CLEAR MIND. A confused mind is fearful and says no to action. A clear mind says yes confidently and with intention.
My whole goal is to help brokers take the confusion out of their business. If you or someone you know wants to get more, similar content on a weekly basis and are not currently on my weekly email, send me an email at [email protected] and my team will add you. You can also follow me at @askjimmiller on Instagram.
