Selling Real Estate In Today's Tough Market: Become A Student Of Markets

Unless you've been in the real estate industry for over a decade, you can't recall a real estate market as tough as this. It's not surprising, then, that what it takes to sell in the current climate is a mystery to a lot of real estate professionals. Yet somehow, somewhere, someone is still selling real estate. Here's how you can too.

Depressed Market Perception Makes Selling Real Estate Even More Difficult
In addition to the 'hard' causes of the real estate market decline, the selling environment is made tougher by the public's perception of market conditions. Conventional wisdom, whether one is in the market or not, is influenced by:

1. A continuation of declining real estate market indicators with no end in sight
2. The incessant way the media intensifies public perception of the problem
3. General fear and apprehension about what is known and predicted for the future

As a result, sellers grow depressed and discouraged while potential buyers often overestimate their market position-- making offers that insult even the most desperate sellers. This is the selling environment of today's market. It's tough, yes, but is it impossible?

Become A Student Of Markets
In his Boron Letters, Gary Halbert once told his son, "The very first thing to realize is that you must become a student of markets. Not products. Not techniques ... the first and the most important thing you must learn is what people want to buy."

With that in mind it's also important to remember that you're not really selling a product or service anyway. You're selling a result, a benefit, an outcome, and an advantage.

Somehow, Somewhere, Someone Is Still Selling Real Estate
So who's making money under these adverse conditions? Some very resourceful real estate auctioneers for one.

Having found a way to monetize declining real estate market conditions, property auctioneers' sales have, in some cases, more than doubled over the past 12 to 18 months. The ways in which they've accomplished this increase in sales hold lessons for other real estate professionals whose own sales have plummeted over the same period.

One way is by convincing owners of high-end properties --on sale in a declining market for a year or more-- to consent to an auction to a group of potential buyers. Many owners have landed 'a price that they can live with'; even if it's less than the price they originally hoped for.

You'll Have To Educate Across The Board
A lot of educating has to be done on both sides of the equation to get sellers to understand and accept a real market value of their property. They also have to be helped to come to terms with the probable opportunities cost in delaying the sale until sometime in the future.

On the other hand, potential buyers need to be taught the realities of their actual position in the market. They can easily overestimate their own market leverage if they come to the table with misconceptions formed by what they've heard or read.

Who Else Needs To Sell?
According to Crain's Chicago Business, amateur developers have greatly contributed to the 5499 finished, yet unsold, homes in the Chicago area. This, according to Crain's, has driven the amount of unsold new homes to its highest level in 17 years.

Many of them are spec built and take longer to sell, so the monthly interest costs eat into the profits the developers originally anticipated. Some developers are choosing to sell now rather than wait until prices fall further.

Opportunities Multiply When They're Seized (Sun Tzu)
Selling real estate in a depressed market is tough but not impossible. It requires the best marketing strategies, time management methods, and building the alliances and partnerships you need to deliver complete, value-added solutions to your clients.

Build a tightly targeted, high precision marketing strategy and you can sell your way to the top.

© 2006 Internet Knowledge Solutions

Kamau Jackson is a Chicago marketing consultant who helps business owners leverage their existing assets to dramatically increase profits—without increasing advertising costs. Get help with your online and offline small business marketing strategies at http://www.internetknowledgesolutions.com.