We had another housing report come in that really wasn’t all that surprising, refinances are down, purchase applications are up, listed inventory fell another 22% from just six months ago. I am sure this isn’t a surprise to those in the field, but it sure seems like the main stream media is constantly surprised by the strength of the housing markets across the country?
The feedback I am getting from my clients is that they are very engaged in this market and that production numbers for them are considerably higher than this time last year. The number of transactions in contract and preapprovals out looking are significantly ahead of this time last year at the same time they are reporting the number of Realtors® complaining about inventory and multiple offer situations are increasing.
We have talked about this a great deal. When the market gets tight, the better people do better! More of the deals getting done are getting done by a smaller group of professionals. The example I think applies the best comes from the Denver market. In my opinion, there isn’t a tighter market in the country than the one in Denver! Yet, deals are coming together quickly when everyone is prepared! Yes, there are multiple offers on most properties, but for those people who have been well prepared; they are getting their offers accepted much more frequently.
So let’s take a look at a few of the reasons that the better people are closing a lion’s share of the deals:
- Buyers have taken the time to be fully qualified for their loan needs by a trusted local professional!
- Buyers are making competitive offers with quick closing dates!
- Buyers are writing personal letters to the sellers detailing why they want to own their house and make it their new home.
- Buyers agents have educated their buyers as to the real cost of property and what the market is.
- Buyers are looking for better situations than they currently have, not a perfect house!
- Selling agents know who the better lenders are and who they trust when it comes to a transaction timeline.
- Selling agents know that the cost of what their sellers are buying can be going up faster than what they are selling, and financing costs rising could easily consume a few thousand dollars they are waiting on.
- Selling agents are working their neighborhoods sharing with people in high demand areas the value of selling and moving on to their “Forever Home” to help generate new listings.
So instead of letting everyone around you just complain about inventory and multiple offer situations, share strategies that are working everyday across the country to acquire new properties for sale, generate better more qualified buyers; and put together real deals that will close quickly!
Some people are happy to sit and complain about how bad the market is! Just like those who complained about all the “short sales” or “foreclosures” just a few years ago. The media also warned about the next housing bubble because there was a giant number of bank owned homes that created this gigantic “shadow inventory” that was going to crush the housing market and start another “bubble”. Well news flash!!! If the banks had any kind of inventory at all, they would be on the market and SOLD by now!
You alone control the way you act and react in this market! You define the experience you provide and identify the people you want to surround yourself with to provide the best possible customer experience. You control if you complain about the situation you find yourself in; or take the actions necessary to establish yourself as the professional that gets the deals done! So you make the choice, complain about the market, or be the one who makes the market!
Questions or comments: Mike@IMTcoaching.com