Agents often get questions about the future of the market from curious consumers. Knowing how to answer them is key to building trust and establishing yourself as an expert in your field. Here are a few ways to stay in the know and spot patterns and trends.
Market trends are ever-changing. During the past few years, cyclical patterns were proved wrong by global events and technological advancements.
One of the most popular questions for a real estate professional from a consumer standpoint is, “What is the market going to look like in X months?” Answering questions in an educated and smart way could boost your business and build immediate trust.
1. Data analysis
Analyzing data such as interest rates, inventory, days on the market and absorption rates are some of the business basics for a real estate professional. But how do we use the data and patterns to predict the days ahead?
Most economical trends are cyclical, but that pattern was disrupted by the COVID-19 pandemic, which drastically altered the curve. By looking at the data from the past, a pandemic should have sent the real estate market into a downward spiral. However, because of technology and the ability to work from home, it has actually boosted the real estate industry.
With this in mind, historical data is a great way to create a pattern; but to actually improve accuracy on predicting the future, it is also essential to be fully immersed in local and global news.
2. Subscriptions and memberships to news outlets
Media is everywhere these days, and it comes in all sorts of formats. Although the algorithm of targeted news may be fairly accurate, it is important to proactively learn about global and local information specifically related to your field of work. Finding customizable news outlets is a great way to save time and search for relevant material.
A few examples of news outlets specifically created for real estate professionals are Inman, RIS Media and Forbes RE. Inman’s slogan is: “Real estate news and analysis that gives you the inside track.”
For those of you who don’t know: Although Inman charges a yearly membership fee, it is the most comprehensive source for real estate professionals who want to stay up to date on market-related news as well as analysis and trends.
On the global news level, FlipBoard offers a fully customizable experience. FlipBoard’s slogan is: “Stories curated for you.” This app allows you to quickly catch up on daily updates without scrolling through pages of information that may not be relevant to you.
Reading the news on a daily basis is fundamental, but it’s also important to remember that market trends are typically cyclical or secular. A daily analysis on news and historical data will allow for you to create a pattern and even predict future trends.
3. Mastermind groups
What is the definition of a mastermind group? Tony Robbins, author, coach and speaker, states that a mastermind is “a group of peers who meet to give each other advice and support.”
There is often a misconception about mastermind groups. Most professionals will only choose to join or create such groups with the ultimate goal of coming up with new ideas or ways of doing business.
However, mastermind sessions typically start with an evaluation of trends and data. Being involved in those evaluations is an incredible skill set to possess and can definitely aid in predicting real estate market changes in the future.
For example, a mastermind group with the intention of brainstorming ideas for new cutting-edge real estate marketing and advertising can turn into a meeting where pertinent information is divulged.
To be more specific, a member in the group could announce a new development is coming to the area, and such knowledge could give you an immense edge when it comes to predicting the future real estate trend of that specific neighborhood.
4. Connect with experts in alike markets
Although real estate markets could differ based on location, it is likely that another market with similar characteristics is experiencing similar patterns. This is where you can leverage your connections with real estate professionals in other markets.
The best way to do this is to arrange a trip and pay a visit to our network partners, but a phone call or a Zoom meeting would be a good starting point. Face-to-face meetings are always best as they will also serve as a way to preserve and nourish relationships with the referral network.
This approach is also a golden opportunity for someone who’s new in the business to learn new things and create new connections.
5. Creating trends
Another great way to stay ahead of the competition is to “be the news.” If you are noticing a substantial change in patterns, write an opinion piece, and submit it to local and global publication sources.
If the piece doesn’t get picked up and published, you can always add it to your personal blog and send it to prospects via digital and printed formats.
The five items mentioned above can seem overwhelming, but in reality, they are all part of the real estate professional’s essential toolkit to succeed in the industry. Setting aside some recurring reminders to complete these activities is likely to not only increase your expertise but also position you above the competition.
Marco Del Zotto is a Global Real Estate Advisor for LIV – Sotheby’s International Realty Breckenridge, CO. Follow him on Instagram and Facebook.