Ok Realtor friends, the market of the moment has given us a short window of opportunity. 

Today, we’re going to discuss a strategy that is especially relevant in our current market climate: how to educate our home-buying clients, and in the process, create urgency for those buyers to make an offer in the next two weeks. Sound good? Let’s dive in!

So what is that short window of opportunity for buyers in today’s market? Well, it’s for two weeks, and it’s created by two market dynamics: 1) slightly less buyers in the market for a home right now; and 2) an imminent increase in interest rates. 

Interest Rates: They’re Going Up

For the past ~18 months, The Federal Reserve has increased the Federal Funds rates ten times, a pattern that was unexpectedly paused this July given concerns around the stability of larger-scale banks stability (triggered by the fall of SVB). This pause will last until the end of this month, when the Fed meets again on July 25th and 26th. It will almost certainly resume its rate increases. While we cannot predict that the Fed will raise rates again (to combat stubborn inflation and over-employment), they are sending all the signals that we should expect another increase in rates.

Why is this important for us Realtors, and more specifically, for our buyers? It gives us a  two-week window where mortgage interest rates will remain relatively stable. 

Peak Season Ends: Slightly Less Competition

The second factor in this window of opportunity is buyer demand. Believe it or not, the peak buying season has ended. With the passing of the July 4 weekend, we’re seeing fewer buyers in the market than we did 2-3 weeks ago. That means that our buyers will experience less competition when they are out shopping for homes. 

These two factors combine to create a unique opportunity for us to sell more homes by instilling a sense of urgency in our buyers.

Here’s How You Communicate: The Script

Here’s a script we are using at The Chabris Group with our buyers:

“Mr. and Mrs. Buyer, we have a rare opportunity in the market right now. Interest rates will stay the same for the next two weeks, and there is less buyer competition. If we can find a home you like before the end of the month, you’ll be up against less competition and can lock in a lower interest rate. I plan to find homes for two of my clients over the next two weeks before the Fed raises interest rates again. Would you like to be one of those two clients?”

This script not only conveys urgency but also offers a solution. This script is best used with buyer clients that have been dragging their feet or have consistently lost in multiple offers. Assuming your client answers “Yes,” you can then follow up with this script:

“Great! Let’s meet and review what we need to do to make that happen.”

What Needs to Change to Win?

By framing the situation this way, you create a chance for your buyers to reconsider their expectations. Meeting with them to review the market of the moment and the newly discovered urgency is your opportunity to have them re-evaluate their home search criteria. Here is when you have an honest conversation around what  compromises they can make on their ‘must-have’ list for their next home, whether it’s on price, location, or the degree of property finishes they desire. 

If they have been losing regularly in multiple offers, this is also your opportunity to have a direct and respectful conversation with them about what it will take to win in multiple offers.  What strategies around price, terms, or timing can they improve to be more competitive over the next two weeks? 

Urgency, Timing, and Offers

Creating urgency is an art, and with the current market conditions, we can use this to both our and our clients’ advantage. It’s about creating a new environment where buyers are receptive to revisiting their expectations and more open to compromise. By doing this, we are not only helping our clients find a home within their budget, but we’re also guiding them to seize opportunities and make decisions that are beneficial in the long run.

So that’s window of the opportunity that the market has created for both us and our buyers. Stay tuned for more insights and strategies to help you succeed in today’s real estate market. Let’s go find homes for two of our clients in the next two weeks! And we’ll be back in a week with another lesson in leads, listings, and leadership for Realtors of all brands, experience, and production.