The unseen downsides of a red-hot housing market — and how agents can build their business in spite of fickle sellers and low-cost competitors
It may seem a little crazy to imply that the housing market can move too quickly. After all, there’s nothing worse than a property lagging on the market while the homeowners grow annoyed or desperate.
But in today’s low-inventory market, listings are quick to sell… and hard to win. So when a home sells before you’ve even had time to put a sign in the ground, it isn’t always cause for celebration.
Despite the headlines about the booming market, most agents aren’t sitting around counting their cash. They’re struggling to identify and win over new prospects — and the fast-paced market is actually making this problem worse.
Here are three distinct downsides today’s red-hot housing market and how agents like you can overcome them to build a booming seller pipeline.
Three issues listing agents face in a fast-paced market
1. Agents struggle to generate new seller leads
Most agents offer a robust seller marketing plan, which is meant to draw in possible buyers and build up their reputation as a local listing expert. When homes sell instantly, agents lose the opportunity to:
- Send “Just listed” postcards to other possible sellers in the area
- Write an impactful blog post that drives in local traffic
- Host an open house where they would meet potential buyers or sellers
And of course, during the COVID-19 pandemic, many other in-person activities meant to generate hyperlocal leads — such as neighbor-only open houses or doorknocking — are also off the table.
When agents can’t use one listing as a way to market their services to an engaged local audience, they may not be able to fill up their seller pipeline.
2. Agents lose business to lower-priced competitors
And even if an agent is able to schedule a listing presentation with a potential client, they may run into a prevalent, troubling mentality among today’s sellers.
Though we may know better, a common belief among homeowners in a red-hot market is that most houses sell themselves. If a seller doesn’t believe in the inherent value of hiring a professional to represent them, they’re more likely to go with an agent offering discount services.
If an agent can’t make a case to share their value and defend their rate “when the house is going to sell anyway,” they risk losing business to those who will do it for less.
3. Agents may not earn future business or referrals
While an agent never wants a home to stay on the market for too long, some sellers need to see an agent go above and beyond in order to justify their commission fee.
For these clients, agents may host an exclusive backyard wine tasting event, help to negotiate a higher offer from a low-ball buyer or even convince the seller that it’s time for a price reduction.
But when a home sells overnight or in multiple offers after just 2-3 days, homeowners aren’t likely to credit their agent with the success. Instead, they often begrudge the hefty sum they’re paying for someone they’ve only worked with for a short time.
This doesn’t just sour the immediate transaction, it also makes it hard for the agent to create a client-for-life relationship that can lead to future business and enthusiastic referrals.
What happens when agents believe “a house will sell, anyway”
Of course, it’s not just sellers who have been known to say “the house will sell, anyway.” Some agents have this mentality, too. And that’s dangerous, because it means that they:
- Don’t understand how to reinforce their value to prospects who may hire a lower-priced agent.
- May not recognize how marketing a listing can boost their local reputation and drive in potential seller leads.
- May not care about satisfying their seller or building a relationship that leads to future business and referrals.
How listing agents can thrive in a fast-moving market
Shy of slowing the market down or an unlikely shift in new inventory, what can agents do to leverage their listings and prove their value to leads and clients alike?
At Boost by HomeSpotter, we believe the answer is simple: Agents can run digital ads that target potential buyers and sellers in the area… and impress the homeseller, too.
Boost ads are:
- Fast enough to automatically detect and run new listing ads the moment a property is listed on the MLS — meaning agents can even advertise and leverage fast-moving listings.
- Smart enough to target the home seller with their own ad — helping to reinforce the idea that their agent is doing everything in their power to drive in traffic and potential offers.
Yes, the house will sell anyway… even if you don’t run a targeted, local ad campaign. But in a market where sellers have the advantage and are hard to win over, a digital marketing campaign can help you build a reputation as the savvy local specialist worthy of a top-dollar commission rate.
About Boost by HomeSpotter
Boost empowers agents to run effective, automated digital ad campaigns. Whether you’re looking to build a strong relationship with current clients or get in front of potential new leads, a Boost listing campaign can help you stay on top in today’s fast-paced, low-inventory market.