There is no denying that these are unusual times in the real estate market. The media reports that the number of homes listed for sale in many parts of the country remains abnormally low, with multiple offers at or above listing prices throughout the country, even in the luxury market. The situation has created a hesitancy to sell in the minds of potential home sellers.
The luxury real estate market is known to be a “buy-up market,” so motivated sellers may lack confidence in their ability to buy suitable new properties after selling their homes if inventories are low. The question that comes to mind for many potential sellers might be: “What can we buy if there’s “nothing” available?” or “Is it best to sell now or later?”
However, the generalization that “nothing” is available in luxury properties is simply misleading. New listings in many parts of the country are up (if only slightly) across many price ranges. The property’s number of days on the market has also increased marginally. Both prove that the buying frenzy and the runaway price escalation of the past two years have somewhat moderated. No one expects the market to change drastically, at least not in the next year or two. But there are ways to ease sellers’ fears about their options.
4 Strategies to Build Seller Confidence
Here are some ways luxury real estate professionals can help boost seller confidence:
1. Begin the conversation early about moving. Let potential clients voice their concerns about selling and finding a new home to buy. Address their hesitation honestly and quickly. Counter any fears they may express by citing statistics. Discuss the realities of today’s real estate market and affirm the importance of being able to act quickly. Note that preparation is the key to success, whether selling or buying.
2. Debunk the myth that NOTHING is available. Share with your home seller pertinent statistics that show new listings per month or within a recent time frame. Gather information that will help you educate potential clients about pricing, locales, and trends. Counter their fears by discussing how you can help find their next home as well as help sell their existing home.
3. Ask clients about their expectations for their next home. Depending on their situation and recent economic changes, potential home sellers might consider downsizing, simplifying, or making a lifestyle change. Other affluent clients might be looking to sell their second home or investment properties. Learning more about your client’s goals could help you manage their expectations and set them up for success with alternative solutions. Be prepared to respond to any questions and concerns that they voice.
4. Ask clients if they have a specific location in mind or a particular home they’re interested in buying after selling their property. It’s not uncommon, even in areas where no luxury homes are listed, to find that local owners might have some interest in selling. Consider sending a personal letter to gauge possible interest. You never know what the response might be.
Don’t be afraid to employ bold methods to help your clients achieve their goals. In today’s hot real estate climate, strategic partnerships in desirable markets can be particularly important. If your client mentions an area where you have already established a business contact, you have a distinct advantage of making an agent-to-agent referral.
The Importance of Networking
Members of the Institute have access to the latest information about the luxury real estate industry and gain expertise in handling the unique needs of the upper tier. Join the Institute’s growing online community of like-minded individuals who can help you excel in your market. Contact our team today for more information!