7 Rules Successful Real Estate Agents Must Follow in 2023 (& The Foreseeable Future…)

From 2020 to early 2022 the housing market was booming. Over 25% annual valuation growth in many metropolitan areas, record low interest rates (sub-3%) and record low supply (1.6 months of inventory) were the three main most significant factors. It seems as if all you had to do to sell a home was put a sign in the yard. Finding a buyer was no problem – though finding a seller was a challenge.

With a booming market, why was there a lack of inventory? The simple answer is sellers who wanted to capitalize on massive equity gains had nowhere to go. Feeding the housing shortage were underlying issues that have existed for years. Rising costs of materials, poor supply chain and a lack of labor further contributed to the US’s inability to keep up with rising housing demands. Factor in that institutional investors purchased 13% of homes – and as much as 28% in some markets – a perfect storm was created.

The market pivoted as it always does. Yet there’s still an inventory shortage. Normal inventory is 5 to 6 months, yet in Q1 of 2023 inventory sat just 2.6 months. The levels are healthier than the last two years, but still below what’s needed for normalcy. And, buyers and sellers are feeling the impact of low inventory. Homeowners who want to sell may be hesitant if their existing mortgage is significantly lower than it would be if relocating to a new home. Homebuyers who want to buy may be choosing to wait because their purchasing power has plummeted as interest rates have risen.

So where do we go from here…

At a recent Mike Ferry Action Workshop in Ft. Lauderdale, FL, Coach Ira Naditch said it best: “We must understand that our business does not depend on the market, it depends upon us. We must have a stronger approach and raise our expectations.”

Ira then laid out 7 Rules created by MFO to create a successful real estate business:

  1. Find Qualified Leads: You cannot have too many qualified prospects. Only one of five leads will execute so you must have a continuous supply of new leads. So where do you find qualified prospects? In today’s market, one source of low hanging fruit are expired listings.
  2. Follow-Up Daily: The more often the better. About 70-80% of lead conversion happens on the follow-up, not the initial contact. Ira asked, “Have you ever lost a lead because you followed up too aggressively?” If you’d like to hear how top producers convert leads to listing appointments, here’s a short video blog.
  3. Prequalify: You cannot know too much about your prospects. Sometimes agents fear to ask the tough qualifying questions, but if you hesitate, you will often find yourself with an unmotivated and unqualified prospect that is a huge waste of time. Keep in mind a doctor would never prescribe before qualifying – so why should you? If you need help with a prequalifying script, here’s a tried and true one to prequalify a listing.
  4. Present Daily: If you want to be a strong presenter, you need to present as often as you can. Your goal should be to present one per day, whether it’s a listing, buyer or price reduction.
  5. The closing is a natural process if you make a great listing presentation. But prospects want to be asked to “sign the agreement”.
  6. Handle Objections: Remember an objection is simply a question that remains unanswered in the mind of the prospect. While many objections will come up, you must master “price” and “commission.”
  7. Start Over: Everyday you must start at zero. If you want to build a strong, repeatable, and profitable business, embrace the repetitious boredom of performing the same tasks day in and day out.

If you’d like to participate in the Mike Ferry Superstar Retreat July 17-21 in Las Vegas, use promo code VENSSR23 to receive a $125 discount on your registration. For more information, visit https://www.mikeferry.com/events.

At ArchAgent, we are dedicated to helping you have the confidence to qualify your sellers – because we supply you with an unlimited number of leads. Check out our likely-to-list analytics,  which help you build your pipeline and make it easier to pass on an unmotivated or unreasonable prospects.