We went from normal market to boom market to chaos market to what? What’s next? And are you ready? Let’s talk about preparing for future markets.
We’re talking specifically about new home sales today. Here’s the question. What happens next? What happens next in the market? Fact is, it’s tough to say. When we think about what happens next in the market, it’s very difficult to tell where we go from here.
We went from a normal market back around the middle of the last decade, 2015 or so, to a booming market in 2018 and 2019 to a chaotic market in 2020 and 2021 and then into 2022. But what happens next? It’s really difficult to say what’s going to happen next. There’s one question I’d like you to ask yourself right now.
Am I market-dependent?
Another way to frame that question is, do I need a great market to be a great salesperson? Hmm.
So what you really need to do is prepare for whatever market is coming along. It’s safe to say that it’s not going to get any hotter than what it’s been over the last couple of years. Let’s assume that we’re going to see the market soften. When? Again, tough to say, though it does feel like there are markets out there that are already feeling like a little bit of the bloom is off the rose.
What’s been missing in a market that has been marked by chaos? I would suggest to you that at or near the top of that particular list of what’s been missing is how to handle market-based objections. The fact of the matter is that you have not been receiving market-based objections, not really.
If somebody has said to you, I think your prices have gone too high, it’s been very easy for us to give them some version of, “Really? See the guy over your right shoulder with a checkbook in his hand? He thinks the price is just right. If you wouldn’t mind taking two steps to the left, I’d like to sell that guy a house.”
It’s actually feeling just a little bit sleazy at times, like psst, buddy want to buy this house? I’m not suggesting that any salespeople are being that glib about it, but the fact of the matter is we haven’t had to spend a lot of time talking about market-based objections.
Now, what do we mean by market-based objections?
What we’re talking about here is anything that’s related to market conditions.
- I think your prices are too high.
- I think there’s a bubble coming.
- I missed out on the low interest rates.
- I’m choking on the payment
All of these things are market-based objections. In a market correction, you’re going to get all kinds of market-based objections. The key for you to understand is that this is really all about confidence.
If you show me any great market, it is always marked by the amount of confidence that people have in the market. What we’ve seen over the last two years is that people are so confident in the market that they’re willing to go to great lengths, sit on waiting lists for a long time, pay more than the list price, and do whatever they have to do.
Why? Because that’s how high their level of confidence is in the market. When you get market-based objections, it means that the confidence is beginning to wane. It’s beginning to soften, and that’s where you come in.
It’s your responsibility to replace that confidence.
When we think about this, whenever you get an objection, well, how do we handle any objection? I want to suggest to you that the default to any objection you’re ever going to hear, I don’t care what it is, is always the same. You know what that is. Tell me more.
Tell me more. Why are you feeling that way?
You want to hear both the specifics of the objection and the intensity of the objection. Therefore, you always want to start with tell me more. You need to let them talk it out. But then you want to go back to that, go to mindset and the go-to mindset says get the home right. Trying to time the market is a very difficult thing to do. Let’s make sure that you’re in the right home!
It’s very difficult to time the market and the fact is that we never know when we hit the top or the bottom of any market until we see it in the rearview mirror. It’s impossible to guess what happens next with prices and rates. Let’s think about what matters most in the long run; let’s get the home selection right.
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Until next time, learn more to earn more!