Do you dread analytical questions about the market?
Do you struggle with how to explain to clients how the market may affect the sale of their property?
Do you have over-priced listings right now that are stressing you out?
Keep reading, and I’ll solve ALL these problems for you.
Personally, I always thought that having a clear understanding of current market conditions was the #1 most important part of my listing presentation.
In my local market, we have a high percentage of analytical types, including thousands of engineers and other scientific people. But these are not the only people who appreciate this type of information. Studies have shown that a very significant percentage of the population have a preference for analytical thinking.
If you’re not giving these people what they want, you are most definitely limiting your potential.
It’s not as hard as you might think to put together a Market Analytics section for your listing presentation.
In fact, I’ll tell you exactly how to do it, right now. And if you still can’t stand the thought of doing it, I’ll tell you how to get ME to do it for you, every single month!
First, know that there is such a thing as Analysis Paralysis. This is where a person gets so overwhelmed with all the data in front of them, that they become completely incapable of making a decision.
You don’t want that!
What I’ve found is that the simplest way to explain the market is to restrict the data you present to Supply and Demand. Everyone can understand this concept, especially if you show it over a few years, so that people can easily see how the market changes from year to year, as well as seasonally.
How far back do you go? No more than 5-6 years, and then only if there is some significant difference in the market that far back. For example, in my local market (Calgary), 2014 was a banner year, so by starting there, I’m able to show how the market changed in subsequent years. This is powerful eye-opening information.
If your market hasn’t changed substantially in a long time, then probably 3-4 years of data is plenty. In this case, you can concentrate on showing your clients the differences in seasonal activity.
Your end goal is to have a set of illustrative bar graphs indicating the total sales compared to the total inventory (active listings) over time, month-to-month.
If you’re tuning me out already, wait!
If you can’t stand the thought of doing this work, get someone else to do it for you. ALL the information is readily available from your local board, so all they have to enter this data into a spreadsheet and then make a bar chart. These functions are built in to every spreadsheet program.
Now that you have your bar charts, you can add more data if you want. For example, here are my two pages for 2017 and 2018 for the Calgary market:
I’ve added in the “absorption rate” to these charts as well as the grey bar running across at the 33% level, which is what I consider to be a balanced market.
Then you just need to be able to explain to people exactly what is happening over time, as the market conditions change. Once you have these bar graphs, it should be obvious for any experienced REALTOR® to come up with the words you need.
In a negative market, when people understand what is happening, they are FAR more likely to listen to and follow your direction when it comes to competitively pricing their properties. This means more sales and less stress for you.
In a strong rising market, you can be the hero and suggest a little higher price compared to what you may have suggested under more adverse market conditions.
If you still can’t stand the thought of doing this stuff, then consider adopting the Knowledge First Listing Presentation, which includes all this data, automatically updated every month, and MUCH more, including a full script on how to present it.
I’m booking one-on-one presentations right now. Simply send me an email at [email protected] for more information!
Please note: Availability is strictly limited to a maximum number of agents in any given market.
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12 X RE/MAX Chairman’s Club ($500K+) all as an individual agent (2006-2017)
Now, I teach good REALTORS® how to be great REALTORS®
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