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- Category: Market Updates Market Updates
- Published: 02 October 2006 02 October 2006
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The gist of this article written by Will Dylan at BrokerAgentNews.com is that when the market starts to make people nervous, they turn to the most trusted real estate agents in the business. This is a time when professionalism and expertise really counts the most.
~ Don
Have you seen the headlines lateley?
MSNBC.com ran this headline in late August - "On Housing Front, It's Beginning to Get Ugly".
CNN.com followed with this one in early September - "Sharpest Home Price Pullback since 1975".
In business, there's a saying - "perception is reality". That means reality isn't looking so good right now from your client's perspective.
All of the negative news that your clients are reading and hearing on a weekly basis creates something I call the "Headline Effect". Whenever any kind of market is confused/scared/concerned thanks to negative headlines, there's a natural inclination for clients to choose established market leaders over alternatives when doing business. This is related to a client's need to feel that they have made a "safe" choice in an unsafe environment.
It Happens on Wall Street...
For example, when the Headline Effect hits Wall Street, people tend to sell their investments in lesser-known companies and put that money into blue chip stocks (think GE, Coca-Cola, Microsoft). In the face of negative headlines about the market, they want their money to be invested in relatively safe, proven performers.
The result - smaller, lesser known stocks take a short-term beating.
Leaders Usually Win in Slow Markets
The same effect can be seen in the real estate business. Clients will choose the safety that comes from the "10 years of leading the local market" agent over the "I offer really friendly service" agent almost every time in an uncertain market.
So here's the tough question - in the eyes of your clients and potential clients, which one are you? Are you a leader in the local real estate business, or one of the crowd?
The Leader's Strategy is Clear
If you're a leader in something within your local market (volumes, listings, sales, a particular ethnic community, experience, etc) then you are well positioned. In fact, now is a great time to flaunt your experience and local market leadership.
Thanks to recent negative headlines, the demand for credibility, expertise, and proven performance is going up. As a leader, you've probably got them all, so make sure this fact is well promoted in these uncertain times. If you are the volume leader in the local area, tell people. If you've been through similar real estate market ups and downs in your 20-year career, tell people. You'll be planting your flag on the leader's spot in the market and staking claim to your territory.
So what if you're not a Leader?
If demand is up for expertise and proven performance, then demand is certainly down for real estate marketing lines like "Call me for great service". When people are worried about not getting fair value for their property or the bottom falling out on a real estate investment, the friendly service angle loses what little appeal it may have held.
If you can't lay a leadership claim to your market or a part of your market, you need to start thinking about how to present some of those "leader" qualities in your marketing.
Act Like a Leader
A good place to start building trust and credibility is through statistics. What happened in your market after the last dip in the market? Did it mirror the national trend, or did your market fare better or worse than average? Did you market pick up again quickly, or remain dormant for some time while other markets recovered?
A good handle on stats like this will provide instant credibility for you when meeting clients, or when marketing to a particular area. In uncertain times, people will grab on to any good, factual information they can get their hands on. This is part of the reason they turn to market leaders - they trust the information they get because they trust the source. If they can get the information from you and you can demonstrate that you understand it, you just became a leader in local real estate information.
Another option for building credibility includes building your local media profile (now would be a great time to get on a local radio or TV show and take questions from residents about the market - it's a hot topic). Nothing says credibility and market leadership like a good performance in the media.
This Just In...Your Market is Changing
Like it or not, today's flow of bad news is changing your market. Client confidence is being eroded and potential homebuyers are being forced to second guess their assumptions about the real estate market.
When headlines create doubt, clients turn to trusted, proven market leaders. Leaders should be turning up the volume on their marketing efforts now to ensure that they are firmly established as a leader in their market.
Those who aren't leaders can still break through, but it requires a credibility boost. With negative headlines everywhere, people want good information from reliable sources. Turn yourself into that source and you'll make giant strides forward in your business.
Either way, you can't change the headlines, but you can capitalize on the Headline Effect.
