How do you Deal With a Bad Real Estate Market?

In many areas all across the country, the real estate market is declining. For some it seems like it may have come to a standstill – brilliant homes sitting there, just begging and waiting for some to make an offer.

Some lucky homes that have sold did not sell for their asking price – many as much as 10-20 percent lower than the list price. These sellers, just grateful to be able to get an offer, willing to take less sales price than pay for the upkeep or risk foreclosure.

Then there are buyers who want to buy a house – but getting financed is like pulling teeth as many lenders are also in deep financial distress.

And yet, despite this going on in many markets – there are agents still thriving, still selling, and doing just as well as ever before.

What is their secret? How do you deal with a terrible real estate market?

Here are some things they’re doing:

Find the sellers who need to sell, the buyers who need to buy: No matter what the market conditions might be, there are always people who NEED to buy or sell a home. They’re A-LIST clients, and usually need to act quick. These clients may come in the form of referrals, company transferees, or marketing to a specific niche of people.

Creative Deals: If you can offer something that is absolutely too excellent to pass up, it can make excitement in a down market. Some people are offering “Money Back Guarantees” – “Sell in x Days or we buy the house from you” or even “Buy one house, get one free” kind of offers. Auctions can also be a way to make excitement or buzz about a property. These may not all be in your best interest, but for some markets, they can be enough to help you slide through a tough market until things get better.

Become a Foreclosure Specialist: If your market is plagued by foreclosures, learn how to become a foreclosure specialist in your area. While it takes some time and practice to know everything from small sales to bank paperwork, it can be another way to get through a terrible real estate market – and service the customers who may be facing potential foreclosure or interested in picking up a few bank owned properties at a steal.

Don’t Say the Market is Fantastic if it’s Not: It’s vital to be upfront and honest with your clients and anyone else you may talk to. Be realistic when you talk to people and clarify what DOM and the list to sales price ratios mean to them. Show them you know the market and what you can expect, and they will trust you. If they reckon they’re home will sell in two weeks and it sits there for 4 months, you’ll probably lose the listing to another agent.

These are just a few thoughts I thought of from the top of my head this morning. Do you have any tips on being an agent in a terrible real estate market? I’d like to hear your thoughts in the comments below.