Whether you’re in a major metro market or a small town and regardless of the country, the economy, or even the day and age in which you’re doing business, when you’re in the field of real estate, three core rules apply to your business:
Real estate is governed by the law of supply and demand
This rule is absolute and without exception. The appreciation of a market, the expectations of buyers and sellers, and the velocity of market sales are all dictated by the supply of — and the demand for — real estate for sale
What Buyers Want from a Real Estate Professional
Buyers can’t be lumped into a single bucket. There are different levels of experience and requirements. First-time buyers need a lot more hand-holding. Investors want lots of data. Most want transactional help, lots of interpretation of documents, and help with decisions.
In a vacation or resort home market, buyers need even more support. Many vacation home markets are in rural, internal or seaside areas. These are areas that often have strict environmental, developmental and building codes. Out-of-area buyers need skilled representation to be sure that they aren’t buying something with hidden future problems.
If you’re representing buyers in other specialised areas or property types, they will tend to rely more on your expertise and local market knowledge. Even when it comes to condominiums, the condo rules and financial particulars are extremely important. An inexperienced condominium buyer will benefit greatly from an explanation of how condo association fees are assessed and how they can be changed in the future, raising the cost of ownership.
When it comes to investor buyers, they often approach you with a great deal of market knowledge. What they value is an aggressive approach to helping them locate good investment deals and negotiating skills to help them get them at the right price. They highly value a real estate professional who can catch things they may have missed and bring them to their attention before an investment mistake.
What Sellers Want from a Real Estate Professional
The simplistic look at sellers is that they just want to sell their home quickly and at the highest dollar amount possible. It’s also true that sellers are less likely to be overly reliant on their agents for help in the process. They want marketing but know that the Internet has changed the game.
They are more likely these days to want to negotiate commissions and to go with the lower cost with roughly equal marketing options. This is less true at higher end property prices, but still, a consideration when you’re quoting a full-service commission.
Unfortunately, recent new online “review and referral” websites are creating some misconceptions on the part of consumers. One such advertisement has sellers happy that “their agent sold their home in two days for more than their asking price.”
That’s a rough quote from a TV ad. Professionals know that in this case the agent either had an easy job in a very hot market, or they underpriced the home listing. We must help consumers to know what we do and value our services.