The state of our current housing market is creating the need for sometimes challenging real estate questions between Realtors and clients.
Twenty-five to 75% of all agents are new to the business and have never experienced a change in the market like what we’re dealing with today. With soaring interest rates sticking around for the time being, Realtors should know how to address the hard topics surrounding mortgage.
Tracey Velt, editorial director for RealTrends and host of the Real Trending podcast, recently sat down with Alexis Bolin, broker associate with Keller Williams, to unearth some valuable advice she’s gained during her 44-year career.
1. Remember that you can’t control the real estate market, only yourself
As much as real estate agents would like the power to shift the tides of our housing market, there’s no way to avoid the ebbs and flows that move mortgage rates. Since the housing market is cyclical, most Realtors are bound to experience both highs and lows during the course of their careers. And knowing how to handle buyers and sellers during the lows is essential.
Tight times for the mortgage industry can lead to real estate questions with customers but keeping in mind that the state of the housing market is beyond your control can help these conversations go smoothly.
“We can’t control the stock market. We can’t control the weather. We can’t control the interest rates. You have control over yourself,” said Bolin.
“And so I made a decision back when rates were climbing to double digits, and the agents were complaining that I couldn’t change it, so what I needed to do is find a buyer who could qualify to buy something and then find a seller who was willing to sell. And my job was to put those two people together, regardless of the rate.
2. Connect the right buyer with the right seller
As Bolin said, connecting the right buyer with the right seller is really all it takes to make a deal in a tight market. While the theory is simple, Realtors need to have a solid network and strong relationships in order to make these connections. But in a rising rate environment, buyers may need a reminder that interest rates aren’t forever.
“Buyers now are gasping for breath because they’ve just seen 6% when they saw 3% a couple of years ago,” Bolin said. “That’s why right now you just need to marry the house and date the rate.
3. Know your stats
Coming prepared with data can go a long way in challenging conversations. Buyers and sellers alike want to know about listing prices, price ratios, interest rates and more.
Bolin asserts that the best strategy is to have an arsenal of market analysis ready in advance.
“You take it in the house with you or when you sit down with buyers to explain the market and to show them what’s going on so that they understand.”
4. Have answers to the most-asked real estate questions
There’s a good reason most buyers and sellers rely on the expertise of a Realtor rather than taking on the process themselves.
Lean on your experience and position yourself as an expert by coming to every meeting prepared to answer the common questions among buyers and sellers. And have the market analysis to back it up.
5. Ask questions and take notes
Having all the answers for buyers and sellers is important, but so is asking the right questions.
“I’ve got answers to everything you may ask me. It’s in a folder. But I’ve got a legal pad, and I’m asking questions,” said Bolin.
“Where are you going? Well, how soon do you have to be there? What’s the most important thing you can get in the house sold? Is it the price? Is it the showings? Is it the fee you’ll have to pay? Is it the closing cost?”
Taking the time to ask these questions also shows you’re invested and helps foster long-term relationships.
6. Respond to emotion with logic
A house is more than just a house to the owner, it’s their home. It’s filled with memories and is often the product of very hard work. While this adds emotional value to the property for the owner, it won’t for the appraiser.
“When people are emotional, you need to have logical answers,” Bolin said. “You cannot answer a million questions with emotion. You must answer emotion with logic. They’ll set emotion aside when you show them something logical.”
7. Educate yourself with the help of a local expert
“Connect yourself with a local expert in your marketplace,” said Bolin. “And do it without the expectation of being paid.”
Learning about handling difficult dialogue from those with more experience can wind up being invaluable and there’s always an opportunity to learn.
“Take advantage of whatever education is going on in town at your local board or any of the broker’s offices.”
To listen to the full conversation and learn more about how to tackle tough real estate questions from your customers, click here.
