We need to be studying the market every single day. Our industry, our markets, our customer, our technology, and our landscapes are changing every single day. At the end of the day, clients are looking for information and to sort data. Therefore, we need to stay ahead of our clients and be studying hyperlocal data.
We all know a stable market won’t last very long. In a stable market, no one has the advantage so motivation will drop on both sides. The market gravitates and shifts to a buyer’s market or a seller’s markets. It is important to know how to price when the market in shifting. We must create the motivation.
7 Rules for Pricing in a Shifted Market
Be a student of the market.
Focus your main comps on actives.
a. Solds are a backward indicator of the market.
b. Compare pending to the actives.
i. If your market is moving quickly, pendings can be a backward indicator.
Be a student of property. Preview homes!
Keep your presentation current.
Prequalify for motivation.
Price ahead of the market.
Always secure price reductions in advance.
In a shifting market, less people will be motivated, so we need to find more opportunities to motivate the ones that are. Elevate conversations in a different way; asking more questions, know your market, and have patience with persistence.