I have a friend who’s looking for a new apartment at the moment. He is one of many people looking in his location. That high level of demand has made it difficult to find a new home, and has highlighted a problem with some of his local real estate brokers. It seems the demand has caused a bit of complacency to creep in.
My friend has contacted quite a few brokers and he’s had quite a few uninspiring responses. In many cases the brokers haven’t replied at all, while one of the better replies contained just one sentence, ‘that property is rented.’ It has left my friend both frustrated and loathe to trust another broker. While there are parallels in insurance, I have another topic in mind today.
If You Let Them Come To You…
The story reminded me a lot of insurance agency sales. We’ve encountered both buyers and sellers who were just as complacent as those real estate brokers. Whether it was a buyer who felt there were plenty of agencies out there or a seller who was sure there would be so much interest they’d sell whenever they wanted, the pattern is the same. They feel so secure in their position that they put little or no effort into the deal.
They didn’t go as far as ignoring inquiries or sending ‘thanks, but, no thanks’ responses. Instead they went into meetings half-hearted. They were waiting for the perfect buyer/seller to fall into their lap. Unfortunately, in many of these situations, that’s exactly what they got. An advisor or an eager party on the other side was able to make the deal happen.
What Happens When The Phone Stops Ringing?
However, that position is never sustainable. Markets shift, and the factors you relied on as set in stone last week become vague memories this week. When the demand for agencies dries up or when owners start to stick rather then twist; those complacent buyers and sellers will need to make a sudden change in approach. They will need to become more engaged and more proactive, or they won’t complete any more deals.
Even if they do, the change may come too late. In my experience, as soon as you fall behind the times, that’s where you stay. Complacent real estate brokers and agency owners are unlikely to change overnight and by the time they do, they will already be at the back of the line. Instead, they need to start thinking about what makes a good deal and focus on that.
If you give one hundred percent effort to a deal, you will be successful regardless of market conditions. Markets shift and demand is always temporary. While you can’t ignore market conditions, you should never let them influence your approach to a deal. If you do, you’re success will be temporary.
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