A buyer’s market means one simple thing–buyers should be buying. Even though the opportunities are just about everywhere you look, buyer urgency seems to be at an all time low.  The thing on the mind of most buyers is FEAR (False Evidence Appearing Real). The fear of paying too much creates an “analysis paralysis” of sorts.

The biggest misconception in a buyers market is timing. Buyer’s think that they can time the market. They are fixated on getting the “most fantastic deal of all time” which causes them to miss out on all of the great deals that are possible.  Buyers need to understand that they can’t wait for the CNN  lead in story to say “BUY NOW”.  Unfortunately the media can only let you know when the time to buy has passed.

The  key to stop your head banging with buyers is to educate the buyer who are on the fence. If you take the time to  inform and educate your buyer prospects  of all of the “hot deals” and keep them “in the market” they will be ready, willing and able to “jump off the fence” when they they recognize a great opportunity that comes their way.

The theme of your education process is “even if you don’t buy at the bottom of the market, you can buy “right” and do well over time.”

Have you heard the saying “A boat is a hole in the water you pour money into?”  The same saying applies to taking an overpriced listing in sellers’ market.  How much does it really cost you to maintain that listing in time and money?  That’s time and money you will never recover because when the property does not sell, the Seller will blame you, fire you and list with another Realtor. (or maybe two or three more Realtors)

There are 5 Stages of Grief and Loss: These stages are based on the book ”On Death and Dying”  by Elisabeth Kubler -Ross.  In the real estate industry, most seller’s are experiencing these 5 stages of grief.  The stages  are Denial, Anger, Bargaining, Depression, then Acceptance.   When you meet sellers that are in Denial and Anger it’s next to impossible for them to be realistic on price.  They just aren’t mentally and emotionally in a position to sell because they are still holding on to “what was”.   It’s  better for you to tell the seller the truth about the market and walk away from the listing    If the Seller is persistent he will find someone else to list the overpriced property.

Later when  the listing expires and the property has not sold, the seller will remember your honesty and may give you another opportunity to list the property.  You will need to provide an updated education on the market as most likely the value of the property will have declined since you spoke with the seller last.  Hopefully while the property was on the market with no showings or offers the seller had time to process the situation and moved through the stages of grief  toward “Acceptance”

Acceptance isn’t all bells and whistles. It’s simply a decision to be at peace with the way things are; to know that no amount of denial, bargaining, anger or depression is going to bring the property back to its former value soon.  The seller begins to accept that this loss is part of life.  It isn’t good or bad…it’s just how it is.  It’s a decision to move on, to find joy in  life and to bring joy to the lives of others. ”Acceptance brings a knowing that if the the sale of the property is delayed, the value will decline even further in value.   The seller will be open and ready to list the property with you as the Realtor, at a price  ”ahead of the market” and move on with life.

The definition of insanity is “continuing to do the same things and expecting different results”. Could this be you and your real estate business? Are you still doing the same things you did in a Sellers’ market and are you expecting sales in the Buyers’ Market? You shouldn’t be. The real estate market has shifted dramatically. Sales volume and the number of closed transactions have fallen faster than the stock market. Inventory has multiplied quicker than caged rabbits. Buyers are scared senseless and fear paying too much. Your competition is dropping out of the business.  What worked in the Seller’s market is no longer working. What can you do right now that will have the most impact on your real estate business?

For starters, the mindset that the “sky is falling” isn’t the best option. By the same token, having an unrealistically positive attitude and wishing the market away won’t work either. You have to be willing to be realistic about the market and the opportunities in the market for you and your clients. “Change the way you look at things and the things you look at change”.