Coaching not Closing. Serving not Selling.
It's the centering cycle of the real estate market between a “Seller’s Market” and a “Buyer’s Market” that more equally favors all parties, including real estate professionals.
According to Darryl Davis, this is the “sweet spot” for real estate agents. It’s the market change that becomes a great equalizer in terms of fairness to buyers, sellers, and agents.
Let's first define a seller's market: Listing inventory during this time is historically low which makes the "demand high" - and gives sellers the belief that their house is worth more. They also don't see as much value in hiring a real estate professional, because they think they can either do it themselves or, or in some cases, think they can do it better than an agent. This makes it tougher for agents to take listings and the pressure to reduce commissions is much higher.
Conversely, in a buyer's market... There is usually more inventory on the market so less "demand" which favors the buyers. Buyers then traditionally take much longer to choose the home for purchase, expect rock-bottom pricing and there is a high demand for real estate agents to negotiate better and better terms and pricing.
Currently we are not in a seller's market nor a buyer's market. Currently we are not in a seller's market nor a buyer's market. Right now, we're in the more equitable spot that is better for both buyers and sellers -- what Darryl calls The Agent's Market™. During this time homes are more often selling at Fair Market Value and buyers are more reasonable. Sellers once again recognize value in using an agent because properties are not selling quickly, they understand that they need the help of a real estate professional to help negotiate the best possible return on investment. Because there is more equity all around, there is less pressure for agents to reduce commission.
Like many industries, Real estate is cyclical. What goes up must come down. From exploding and abundant markets to bubbles and bursts, real estate will continuously be in a state of change.
The Agent's Market™, the delicately balanced time between the two extremes is the best possible time for real estate agents to do what they do best, and that is to be of service to consumers – both buyers and sellers.
“In our Power Agent Program®, seminars, and webinars all across North America, my audiences and coaching members are starting to feel the shift to the Agent's Market™," says Mr. Davis. "When a market changes, so should an agent's approach to their business. I liken it to a great chef at a high-end restaurant. A chef will make changes to their menu based on the season and the types of fresh fruits and vegetables that are available. This is why we believe the old sales training methods of 'find a problem or pain point and offer a solution' doesn't work for consumers anymore. If it really ever did to start with. We teach agents to COACH their buyers and sellers and NOT CLOSE them."
Let’s take a homeowner as an example. If you were to ask a lot of agents what’s the end result that sellers want, they will almost always say, ‘to sell the house’, and in the old world of sales training that would be a good answer. But in today’s world of real estate sales, our Power Agents® recognize that no homeowner sells a house JUST to sell a house. They are selling because they are committed to something bigger than the sale of their house. Selling the house is not the end result but a means to a bigger end. They may need to downsize for financial reasons, or their family is growing so they need a bigger home, or they have a job opportunity in another area, so they have to relocate. In other words, they are selling their home to accomplish their next level in life.
We are just on the cusp of the new market cycle, and some areas of the country will be quicker to come to center than others. What does this mean for real estate professionals?
As the market swings to the center, and both buyers and sellers more recognize the value of using a real estate agent, agents need to raise the level of value they offer to be competitive.
That means understanding full well that consumers no longer want to be SOLD. They want qualified, resourceful, trustworthy advocates who can help them make savvy decisions for themselves and their families.
That means developing the strongest possible communication skills. This includes learning to ask the right questions, LISTENING more than speaking, and using metaphors, analogies, and stories to create connections between agents and consumers.
It also means developing a strong listing conversation (preferred over 'presentation') will also take center stage. For today's consumers - that means keeping it REAL.
- Darryl Davis -
For some agents, particularly new agents or those struggling to get listings, it’s especially important to generate NOW business, so that they can ensure they will be around to reap the rewards of a full-blown Agent’s Market™.
In his sold-out webinar, BREAKTHROUGH Business Plan for Now Business, Future Business, and Financial Freedom, Darryl Davis shared the tools, strategies, and skill building agents need to create that necessary shift.
“To generate NOW business, agents should focus on calling FSBOs and Expireds. Next in line would be old FSBOs and Expireds, then For Rent By Owners.”
They also need to work more effectively and efficiently with buyers. With no time to waste, finding ways like using the Shiny Penny List to work the HOUSE, not the BUYER shortens the time spent driving buyers from property to property just makes sense. That way, agents can get BACK to the business of building listing inventory sooner!
The truth is, that the majority of agents don’t like being ‘hard-core’ salespeople any more than consumers enjoy being ‘sold’.
For most of them, it feels inauthentic. Uncomfortable. Pushy.
None of these things would make an agent want to jump out of bed in the morning and be excited about conducting business. Quite the opposite, right?
No one really wants to feel like they have to bully their way through the day to create a sale.
BUT – What does feel authentic, exciting, and more natural is to be in service of others. When agents have the opportunity to switch the narrative, not just with the people in their community – but frankly – in their own minds first, to serving, not selling – that’s when the magic happens.
Agents tell us it’s been a game-changer for them. “I’m excited about what I do again.” “You’ve lit a fire under me – and I love it!” “This feels so much more like ME!”
Coaching not Closing. Serving not Selling. That’s the heart of the Power Agent Program®.
The Agent’s Market™ is the perfect time to lean in for agents and showcase the differential. With interest rates, stock markets, and real estate news in a constant state of flux – what’s natural for consumers is to ask, “What does this mean for ME?”
All great questions – and all extraordinary conversation starters and ice breakers with buyers and sellers who are, more often than not, making some of the biggest financial decisions in their lives and that of their family when they are considering buying and selling property.
When the conversation – and the intent of the conversation – is flipped, and agents are paying true attention to the consumers they are speaking with, then it really does become about those consumers. It creates an opportunity for agents to truly be present and listening, so they can coach people to best realize their goals.
Help them find that place near the grandkids.
Or the best place to relocate for that new job.
Or the house with extra room for the nursery.
It’s an amazing thing – when agents make the shift. It allows them to get off the commission roller-coaster. Why?
Because they are no longer in one-and-done mode with each person they talk to. They are building relationships. Customers for life. Reputations for service. Even lasting friendships.
For agents that have been in this business through the best of times and the worst of times – the Agent’s Market, and a renewed sense of service over hard-core sales mindset, is a breath of fresh air.
The Agent’s Market is an incredible time to show up with the best of yourself and lead the way for agents in your area. Show them by your words, actions, and integrity level what it looks like to serve with a smile.
Helping agents show up as their best selves, develop powerful and long-lasting relationships, grow their businesses with solid foundations, and – of course – design lives and careers worth smiling about is the bedrock of OUR business.
We’re here for agents all across the globe with the tools, training, strategies and systems to help them realize their NEXT LEVEL®.
That’s what we do.
To leverage the Agent’s Market, it’s more important than ever to prospect with purpose, be a trusted resource that consumers consistently can turn to and develop the skills necessary to ensure a long-term successful career in our industry. This eGuide will help you create the connections you need to generate the business and client base for the new balanced real estate market. Download your copy today of the12 Best Ideas to Generate Listing Leads in the Next 30 Days!
Copyright 2019 | Darryl Davis Seminars Inc.