Does working with buyers leave you stressed out?
I am not surprised. Being a buyer’s agent in today’s hot sellers’ market is really tough and not very profitable.
Buyers Agents Affected by Inventory Crisis
If you’ve been following the latest housing stats from the MLS you already know that June was not a good month.
Sales are down, new listings are down, and the inventory has continued to decline. A 21% drop in new construction permits did not help either.
The highlight of the June report was increasing home values. Good news for sellers, but terrible for buyers and their agents.
The only remedy to prosper in this environment is to focus on listings.
Why You Don’t Want to be a Buyers’ Agent
Many agents come into the real estate business because they enjoy working with buyers. It is very rewarding to see first time buyers excited and smiling ear to ear when they get the keys to their new home.
This enthusiasm is quickly gone when you spend all day showing listings as soon as they hit the MLS and lose the bidding war to a more desperate buyer.
Lots of showings, lots of offers, and many contract cancellations due to buyer’s remorse!
If you want to last in this market without being completely burned out, you have to become a listing agent.
Why You Should Focus on Less Expensive Homes
Let’s take a look at market conditions below $350,000:
- 79% of all sales occur in this market segment
- Homes usually sell quickly – average DOMs are just 18
- Sellers often receive multiple offers above list price
This is the segment of the market you want to work in.
Commissions for luxury homes may sound attractive. Who does not want a $21,000 paycheck on a $700,000 listing?
However, you will have to spend more money marketing upscale homes, and the pool of buyers is very limited. In June only 2.2% of all home sales were above $700,000.
How to Become Listing Dominant?
Watch Tom Ferry explain what you need to do to get more listings.
If you struggle with getting listings and suffer as a buyer’s agent, I invite you to click here and schedule a confidential strategy session!
I will gladly show you how we became listing dominant.