According to the National Association of Realtors, real estate agents and brokers are looking at a substantial increase in sales driven by the 11% income growth.
What does this mean for your team or brokerage?
According to the National Association of Realtors, real estate professionals can expect an 11% increase in total average consumer income in 2017. Any statistics forecasting changes in basic indicators is usually unreliable and not of much use. However, this 11% increase in income is absolutely imperative information to know as a broker or team leader. Here’s why:
- Any income increase is a sign of a growing economy. As the economy expands, more people are looking to buy houses, and thus more realtors are able to close deals. This spike in income signifies that the US economy is on the rise and real estate agencies should take advantage of that while it’s possible.
- Seasoned players will thrive now more than ever. The National Association of Realtors also reported that real estate professionals with numerous years of experience have benefited from the income increase more than those new to the field. This is not surprising since experience breeds proficiency, which, in turn, leads to bigger profit margins
- Clients may be more willing to sign a contract. If a client sees that the real estate market is booming, they may be more likely to close a deal than if the market was down. Now is a better time than ever to look for clients who wish to sign. This accounts for many more sales in your future!
Overtime is partly what’s driving the growth
In a recent study conducted by Realty Leadership, it was revealed that one of the root causes of the annual income growth is overtime. About 44% of the participants said they work 3 to 8 hours of overtime every week. This means that the average homeowner is spending less time at home, so the quality of that time is now more important. It prompts people to think about selling their current house and buying a more spacious and luxurious one to finally enjoy the quality of life they have earned by all their hard work.
How to Make the Most of Your 11%:
- Educate your potential sellers:
There’s no better time to sell than when all the buyers interested in purchasing a new home have enough money for it, enjoy low interest rates, have access to the Internet and public sentiment on the real estate market is optimistic.
- Don’t keep it a secret from your buyers either:
Renting or living below their means is possibly the worst mistake anyone can make in today’s market. Whether they are making their landlord richer while they could be virtually living for free, or whether they are postponing moving into the house of their dream, the reality is that the house prices are going up faster than their income is. It’s true that the best time to plant a tree was 10 years ago now when you are craving shade in the heat of the summer. But the second best time is right now.
While there’s no surefire way to guarantee sales (even in the growing economy), now is the time to start closing some deals. Seeking out new clients and following up on old ones are a good way to begin the process. It may even be beneficial to jog your sales skills by trying new approaches.
If you are an experienced team leader or broker, you know what works and what doesn’t. If you don’t, now is the time to do your homework and research the best strategies for closing deals. Hospitality, convenience, and technology are three pillars customer satisfaction rests upon. Analyze your client base in order to see what they need and deliver it. Then you can go about making more sales – and making the most of your 11%.