The Massachusetts housing market is the strongest it’s been in years. That’s according to The Warren Group’s latest data – which shows the value of real estate is on its way up – after a year of double-digit increases in home sales. Many experts owe it to the strengthening local economy, and say it’s really impressive, given the continued low inventory, and fairly expensive homes that span the commonwealth, especially in comparison to the rest of the country.
With that momentum, it would seem a foregone conclusion that it’s going to be a really good year to be a broker. However, it’s just not that easy. It takes more than a hot market to be a successful real estate agent – and this year, those qualifications will be more important than ever.
Consider these criteria:
Great agents are real estate gurus. They become experts on the local market. They know the stats and what impact the data will have on a client’s decisions. They study the multiple listing service data, read everything about real estate they can get their hands on, and see as much property as they can. Great agents scour the web for helpful and insightful articles written by expert analysts to share with their clients about everything from market trends to the latest in kitchen design. The most successful agents understand, and can effectively convey, the impact of the shifting affordability index, the “real” unemployment figures and the changing mortgage climate on real estate values. This research becomes the foundation for being regarded as the local expert, who has at his or her fingertips a virtual cornucopia of information about our industry.
Today’s great agent will know that technology is our friend, not our foe. In the nearly 20 years since I first became a residential real estate agent, I have witnessed wholesale changes in the way we do business. Technology was originally thought of as threatening to our livelihoods – after all, if buyers can see everything on the “worldwide web,” why will they need us? The truth, however, is that the vast volume of information available to the average consumer can be overwhelming and confusing, let alone just plain wrong. Even Zillow CEO Spencer Rascoff told “CBS This Morning” last winter that their “Zestimates” are not always accurate, calling them a “good starting point, with a median error rate of 8 percent.” A successful agent in 2016 must be the one who can analyze the mountains of data on the web and synthesize it in a way that the average man or woman can understand and trust. The superstars also are communication mavens, comfortable interacting using modern multiple media to fit the needs of their clients. They know that technology phobia is the real enemy, not technology itself.
Really talented agents stay in learning mode 24/7. We are never too old or too successful to learn a better, faster, more efficient or effective way to conduct business. We must stay on top of changes – laws controlling our industry, evolving best practices and emerging technologies. Remembering to “sharpen the saw” on a regular basis solidifies that enviable status as the local real estate expert. It is always interesting to me that well-trained new licensees are often better prepared for shifting markets and changes in practice guidelines than the 20-year veterans who have not been in the classroom for way too long.
The age-old cliché that he who controls the listings controls the market has never been truer than it is in 2016. Listing agents who can sit back to wait for the buyers to flock to them are definitely in the cat bird seat. Current absorption rates indicate a severe shortage of properties for sale in Greater Boston, a problem that will be exacerbated by the influx of new house hunters resulting from the impending move of General Electric headquarters into the community. This means that successful agents will concentrate on finding the listings and sidestep the pain of working with buyers in an extremely unbalanced sellers’ market. We will inevitably see multiple-offer situations and the need to write several offers for each of our buyers in order to get them into a home. This is emotionally draining and time consuming, and the smartest agents know this. They will spend at least two hours every day on lead generating activities in order to corner the market on listings.
All the tips outlined here should come as no surprise and are likely a part of every agent’s basic training – but they are great to review, especially at this time of year, when forecasting and advance planning is being done. The really great real estate agents are the ones will do the work that the rest of the pack simply is not willing to do, and will always try to keep learning how to do it better.
Lynn Cohen is team leader at Keller Williams Chestnut Hill Market Center.
