Your words matter.
As a real estate professional, consumers look to you as an expert. If your words signal the market is a scary place, they will steer clear of buying or selling (or they’ll find another Realtor to work with).
Here are three phrases to stop using immediately – and what you need to do instead:
“There’s no inventory on the market.”
People keep talking about low inventory. But let’s take a look at the data:
- 6.12 million homes sold in 2021
- 5.64 million homes sold in 2020
- 5.34 million homes sold in 2019
Clearly, there are opportunities in the marketplace.
The reality is that properties are selling faster, with no stale inventory sitting on the market. The number of days on market is down across the country. This means the problem is not a lack of inventory. The problem is a surplus of demand.
By telling buyers ‘There’s no inventory on the market,’ people are scared off because a professional said there’s nothing to buy.
Instead of feeding buyers this inaccurate – though widely used – phrase, focus on providing accurate information and messaging for your local market. Show the number of new listings, active listings, and days on market. By explaining what these numbers mean, you are providing buyers with the education they need to make informed decisions.
“It’s a crazy market.”
When I’m making the biggest financial transaction of my life, I don’t want crazy. I want incredible.
We’ve seen incredible appreciation year over year. We’ve seen phenomenal amounts of offers coming in on homes. These phrases get people (especially sellers) excited, because they communicate the positives of the current market, instead of focusing on the burnout that many agents are currently experiencing.
Saying, ‘It’s a crazy market,’ is not going to make people want to jump in. And here’s the thing – we know it will hurt them to wait.
Source: Keeping Current Matters
As rates and home appreciation continue to rise, buyers who wait are missing out. And those who are renting are paying someone else’s mortgage rather than building their own equity.
“People are overpaying for homes.”
People are not overpaying. They are acquiring properties.
A home is only worth what a buyer is willing to pay. If multiple buyers are willing to pay over asking price for a property, then they are acquiring the home. Once acquired, buyers immediately start building equity instead of paying rent.
A lot of Realtors don’t realize what they say matters. By using words like “crazy,” “overpaying,” and “no inventory,” consumers back away from the market. In turn, agents are doing clients a disservice because they don’t have the stats and data to educate the consumer.
For the first time in a decade, the number of real estate agents is dropping. And given the current state of the market, it’s more important than ever to keep people informed of what’s actually happening.
In order to gain clients and last in this industry, you need to:
- Adjust your language.
- Become the knowledge broker.
Use real data from your MLS to show people what is happening in your market. By knowing your stats, you can educate the consumer by sharing real numbers instead of fear-inducing headlines. Ultimately, this will help your clients achieve what they want, as you gain credibility and consumer trust.