First take a look at what I call the “Reality Graph” This gives you a 3 year at a glance look. Not the day to day terror of this troubled market, but the big picture… the forest and the trees. Notice the roller coaster wave of green bars are the listing inventory. But look closely at the red line of Pending Sales. It’s steady… no big ups and downs… no seasonal highs and lows. In spite of the panic you feel from time to time… sales have remained steady for the last 3 years..
You won’t like the realities I’ll point out from this graph. Most agents hold these myths to be true. They blame their success or failure on these myths. So, if you’re like most… these realities will be hard to face…. but be courageous and read on….
Myths:
#1 Myth: December-February are slow months. Summer months are the busy months.
Realty: Pending sales actually hold steady through these months. Your sales can be just as consistent in December-January as they are in June. You have less competition in the “slow” months as because competitor agents believe this myth and work less. Summer months have increased Listing activity but no real increase in actual sales.
#2 Myth: The news media effects real estate sales
Realty: Sales have remained consistent the last 3 years regardless of good or bad news reports
#3 Myth: Low interest rates and low prices cause people to buy houses
Realty: More people bought houses when interest rates and prices were higher than today when prices and interest rates are low. (remember 2000-2004?)
Don’t believe the myths. They are dis-empowering beliefs or excuses that undermine your confidence and keep you from taking effective action on a daily basis.
Actual pending sales have remained consistent, steady, and stable for the last 3 years regardless of how much other activity in the market comes and goes. However, individual agents business varies widely month after month. The conclusion can only be that the business is distributed differently each month. The size of the pie never changes… how it’s divided and to whom varies.
Your income as an agent can remain just as stable and solid as that red line on the graph. Every day, I coach agents to avoid the ups and downs of the market by focusing on the right things. Let me know if I can help you off the real estate roller coaster and into a stable career in real estate!
- Tom Pelton June 2011
Helping SELLERS Get Realistic About Price
Filed under: Uncategorized
