Earlier this year, a mansion in Maryland sold for $1,000,000 over asking, an offer nearly 30% higher than the listing price. Offers like these have become the norm in many places. For a typical house listed at $300,000, that would mean selling for $387,000.
Put plainly: we’re in an epic seller’s market. Seller’s markets are affected by many factors, including inventory, interest rates, and consumer behavior. The pandemic created a perfect storm of factors resulting in historically low inventory and interest rates, paired with surging demand, especially among millennials. And these conditions are expected to continue for some time.
Brokers are uniquely positioned to support agents during seller’s markets. These periods can be particularly stressful due to the intensity of negotiations, the likelihood buyers’ offers will be rejected, and less predictable commission income. Brokers can help by offering the best combination of services and support for their agents. Read on for ideas on how to help your agents be successful during these periods.
Brokers need to be equipped to help agents with seller’s market strategies. These include tips and tricks for locating new listings, maximizing buyer offers, negotiating the best terms, and finally choosing the winning offer. Strategic guidance from brokers will reduce agent stress and increase customer satisfaction.
Agents need a steady stream of buyer and seller leads, and their overall lead generation strategy should have specific seller lead gen tactics. Just one such tactic is automated home valuations (AVMs), which use real-time data and mathematical modeling to estimate listing prices in a certain area. AVMs can easily be added to your brokerage or agent websites to encourage potential sellers to provide their contact information and list with your team.
Listing prices are really important, even in a seller’s market. Aim too high, and you scare away opportunities that could drive the price up or improve terms. The trick to setting the right listing price is staying on top of local market trends. It is easier than ever for brokers to analyze their own MLS data and generate market intelligence for picking the best listing price.
Houses might sell themselves during seller’s markets, but agents should always aim to maximize buyer offers. The best way to get multiple offers is through high-quality and consistent marketing, both in print, online, and in-person.
A tool like a full-service print and digital marketing suite can help simplify and automate many of these marketing tasks, so your agents can offer stellar customer service instead of stressing about social posts. These same tools help take the place of yard signs when there are fewer houses on the market: an active social media presence propels your brand even when listings are limited.
Real estate transactions are complicated. An end-to-end transaction management system with electronic signatures will make your agents’ and admins’ lives a whole lot easier and help them focus on serving customers, not searching for files.
After working hard to close a deal, agents want to get paid the right commission amount on time. With the number of different commission plans and brokerage fees out there, paying commissions properly can be more complicated than it sounds. Luckily, there are highly customizable, intuitive, and flexible solutions like Constellation1 Commissions to help you make sure your agents get their money quickly and accurately, without worrying whether you did it right.
Home buyers and sellers rely on real estate agents for their professionalism and expertise to help them get the most out of their transaction. Agents rely on their brokers to provide the right tools, support, and fair compensation. When you give your team what it needs to succeed, you will have happier agents and happier clients, helping your brokerage grow into the future, no matter what kind of market you’re in.
If you’re interested in learning more about the tools you can use to empower your team, close more deals, and improve your bottom line, get in touch with us today.