Don’t Let Market Data Deter Your Customers from A Great Homebuying Opportunity

By: Collin Ellingson 

The data released this week from the National Realtors Association didn’t exactly paint a positive picture of the current market.  National sales for existing homes in July dropped to a 15 year low.  July sales fell by over 27 percent compared to June, and sales decreased 25 percent from July 2009.¹

So, your prospects and customers come armed with this information when they enter your sales center, open house, or new listing.  What to do?

• Listen – Your customer/client needs to know that you are a consultative ally in their home purchasing process.
• Acknowledge – In order to establish trust and credibility, you must acknowledge your customer’s concerns and fears.
• Question – Ask direct questions to uncover the true mental obstacles to a purchasing decision.
• Present a Solution – Turn each objection into a positive opportunity.

 Sure, July sales fell, but that is partly due to the wealth of closing activity which occurred in June as a result of the homebuyer tax credit.  Summer seasonality is another factor.  So, one could argue that the drop in sales was expected.

In addition, most of the favorable “buyer’s market” conditions which existed in the spring are still in place now:

Historically low interest rates: 

• Historically low interest rates:  As of 8/25, 4.5% on average for a 30-yr fixed, and 3.5% for a 5/1 ARM
• Housing affordability is still at all-time highs
• Sellers are willing to negotiate price and conessions
• Desirable inventory = choice

Most of the new-home communities we represent at CBNRTDA possess readily available financing options, including FHA and conventional project approvals.  

Also, in contrast to much of the competition, many CBNRTDA communities have surpassed 30%, 50%, or even 70% sold-out status.  

Show your clients why and how your listing and/or community is bucking the market trend. 

Use this information to sell from a position of STRENGTH, STABILITY, and SECURITY, and you will often see buyer hesitancy disappear.

 ¹ “Atlanta Housing Market Suffers Big Setback”.  The Atlanta Journal and Constitution.  August 25, 2010.