Marketing and Selling are two different but compatible concepts. Marketing attracts the ready, willing and able buyer but that isn’t enough to get your property SOLD. This blog is really for the market we are moving into which is going to require sellers to work hard to get their properties sold unlike the state of affairs for the last nine years. Multiple offers, quick sales and little competition are a thing of the past so knowing how to market and sell your property is critical. Let’s face it many Realtors who don’t have the experience of selling in a buyers’ market will still approach selling your home in the same way – by the way that won’t work! As inventory builds, buyers have more homes to choose from and as the interest rate shifts their buying power is shrinking. The home that sold in 12 days last year may take 30+ days in 2019 and the owners aren’t looking at multiple offers at and over list price. Read on for a brief discussion about the market and tips from a Realtor that has been in the up and the down market and who understands the difference between marketing and selling in the current market.
Current Market Trends
In Los Angeles, we have enjoyed almost ten years of escalating prices, also known as a “seller’s market”. However, the tables are turning and the effect of this change is going to be devastating to some owners who are not prepared. Strategy, aggressiveness and responsiveness are critical in a market that is turning down because time is not your friend.
A buyers’ market is the toughest type of market. Here’s why:
- Most buyers are naturally indecisive, so having more choices makes this even worse.
- Properties sit on the market longer and prices decline steadily. With good reason, many sellers can be extremely reluctant to get in front of a ball that is rolling downhill.
But wait, it gets worse! Add a rising interest rate to the mix, as well as a cyclically slow fourth and first quarter, and you can just picture the next three months or so in real estate.
Selling and Marketing Effectively
The whole purpose of marketing is to gain exposure and get the right message across to your potential buyers. Through it, you’re hoping a buyer recognizes the value in your offer and chooses to explore the opportunity further. Many people mistake marketing as selling, and that couldn’t be further from the truth. Marketing includes using strategies like sending postcards and brochures, sharing pictures and videos, posting engaging virtual tours, hanging signs and flyers, holding a home open at an open house, and using social media to keep your customers updated and excited.
Selling, on the other hand, is the art of identifying a true buyer, understanding their needs and wants, and converting your opportunity into something that matches their needs. You need to ensure that your property is valuable enough to them to justify your price. Throughout this process, you’ll need to address objections to the purchase, challenges that have been identified in the product, and manage outside influencers like properties that compete for the attention of your buyers. Does this sound like something that a postcard, an Instagram post, or a sharp video can do? Of course not! That’s why you need well-trained, driven, and highly professional people to help you get your property sold in a declining market.
Don’t get me wrong—marketing is very important! It attracts and drives the potential buyer toward the agent or the property so that the property can be sold effectively. The two tactics truly do work hand in hand. The problem that I see often, both in owners and agents, is that they feel that marketing alone is enough to sell a property in any market. I have a surprise for those people.
Marketing alone is not enough.
At least, it’s not enough to get the best value and the best terms. As a homeowner, you may get lucky by simply using marketing; however, more often than not, you’ll likely lose out on value and opportunity. Don’t cheat yourself by settling for less because it is easy, because you can sign up online or get discount services for a discount price. Don’t be fooled into thinking you can get top of the line service from a nice but inexperienced, energetic but uninformed rookie with flashy marketing but few sales skills
Trusting Your Real Estate Professional
So now you’re thinking “now what?”
First, ask your real estate professional how they are going to sell your property once they get a qualified buyer in the door? How will they encourage buyers to both see and take interest in your property to call about it? How do they get them from viewing your property on the website to seeing it in person so that the selling process can begin?
Don’t let flashy marketing tactics distract you from the real question—does this well-dressed agent, with slick brochures and a good sales pitch, actually know how to sell? Don’t ask them to tell you what you want to hear and make you feel good, ask them how they will deal with the lack of curb appeal or the traffic on the north side of the house, ask them what they will say when someone questions your pricing or the condition of your home. Don’t be a pushover and be selective.
Factors That Are Important in Selling Your Property
The three things that impact the sale of property most are:
- The condition of the property
- The location of the property
- The price of the property
There are other characteristics, though, that can impact the sale of the property as well.
- Tax impacts
- The effects of loved ones, like parents, spouses, siblings, and more
- Balancing other investments
- Timelines and personal situations, including death, illness, pregnancy, marriage, and others
The professional that sells your home effectively has a better understanding of these characteristics and how to emphasize or de-emphasize them to manage price, marketing, and selling in light of them.
I hope that with this blog, you can now begin to understand why selling a home effectively in a buyer’s market really isn’t easy. So how do mediocre agents and sellers get things sold in this type of market? Honestly, it’s luck and lower prices. When it comes to real estate, pricing can conceal and compensate for ineffective selling. When you price a property aggressively low, you may sell your property, simply because of perceived value. The problem here, though, is that most people don’t want to leave money on the table and want to get the best price possible.
If you are a seller that wants fair value for your property, you must use a professional that has mastered effective selling and marketing techniques. For more questions about your property, real estate goals, or anticipated outcomes, call Teresa Mack at 323-377-9379. TeresaMack.com