Roadmap for selling real estate: A comprehensive guide to getting started
Feb 22, 202411 MINS READ
Real estate trends in 2024
If you’re a realtor, you would know that the past year threw its fair share of curveballs, from surging home mortgage rates to economic uncertainty. However, in 2024, cautious optimism is in the air, and several vital trends hint at a potential market shift back to normalcy.
If you’re selling real estate or planning to start selling real estate, now is the time to hit the market.
The global real estate sector is expected to grow steadily, with a projected annual rate of 3.41%, leading to a market volume exceeding $729 trillion by 2028 [1].
Realtors also welcome declining mortgage rates, a significant pain point for many prospective home buyers in the United States. After peaking at a daunting 7.79% in October 2023, the 30-year fixed-rate mortgage settled around 6.69% in late January 2024, this year, according to Freddie Mac [2]. This newfound stability could entice people into buying real estate, boosting demand and potentially stabilizing prices.
Adding to the decline in mortgage rates is the steady rise in housing supply. Apartment construction, for instance, is expected to top 460,000 units in the U.S. alone this year, in addition to the 700,000 units added since the pandemic began [3]. This increased supply could help improve affordability, resulting in more potential buyers.
Beyond residential, the commercial sector is also gaining traction. The return-to-office movement is picking up, with over 80% of employees physically in the office at least one day a week, compared to just 61% a year ago, according to leading real estate services company JLL [4]. This shift is driving renewed demand for office space, with projections of a gradual recovery in the US, Canada, and parts of Europe.
Top 6 challenges in selling real estate sales
1. Market fluctuations
While the market promises lucrative rewards for real estate agents, it also presents distinct challenges. The real estate market is sensitive to economic changes, interest rates, and global events. Realtors must develop strategies to weather these fluctuations to ensure stability and success in uncertain times.
For instance, commercial real estate prices have tumbled by 11% since the Federal Reserve started raising interest rates in March 2022 [5]. Analyzing historical market data and staying informed about economic indicators are crucial to overcoming this challenge.
2. Long sales cycle
Real estate transactions often involve a lengthy sales cycle requiring patience and persistence. For potential buyers, a home often means they must put down their entire life savings as a down payment. For this, they would want the purchase price aligned with their affordability.
On the other hand, the homeowner wants to part with the home only if the sale price matches their expectations. For several, the home value also factors in their financial, emotional, and physical efforts.
This means several rounds of negotiations over an extended period. In addition, you need to factor in home inspections, paperwork, closing costs, and other factors.
In commercial real estate, a higher number of factors are at play. These factors include underwriting, due diligence, and more, thereby lengthening the sales cycle and chasing an elusive closing date.
3. Evolving customer needs
Real estate needs are ever-changing as people’s lifestyles change with the times. For instance:
Home offices are becoming increasingly sought-after with remote or hybrid work and changing family structures.
In the aftermath of the pandemic, dedicated fitness spaces and outdoor areas are also in demand.
Eco-conscious buyers prioritize energy-efficient features, sustainable materials, and proximity to green spaces.
On the commercial side, spaces with plug-and-play capabilities have been gaining traction. Tenants are increasingly choosing newer, more modern buildings.
New commercial spaces are leaning towards IoT-connected heat pumps to boost efficiency and reduce emissions. Buildings can use local energy generators like rooftop solar panels to supply power during periods of peak demand, notes the National Association of Realtors (NAR) [6].
4. Tackling “For sale by owner”
Several home sellers try to go down the “For sale by owner” (FSBO) route to avoid shelling out agent commissions. According to NAR statistics, about 10% of homes sold fall under this category. Homeowners typically use the following marketing methods [7]:
Friends, relatives, or neighbors: 28% of owners use this to market their property for home selling.
Yard sign: 20%
Third-party aggregator: 19%
Social networking websites: 17%
As a real estate agent, you can educate home sellers about the pitfalls of the FSBO route.
FSBO homes generally have a lower asking price and, consequently, a lower sale price. The typical FSBO home sold for $225,000 compared to $330,000 for agent-assisted real estate selling. Getting the right market value was a challenge for 16% of owners.
Understanding and performing paperwork is a huge challenge for owners, as is home staging, holding open houses, and so on.
Even though FSBO homes try to avoid real estate commissions, the home sellers end up paying the buyer’s agent brokerage and shell out fees for a real estate attorney to draw up documents.
5. Generating quality leads
Home sales or leasing out commercial property is a saturated market. Today's buyers and sellers are bombarded with listings and information from every corner. Cutting through the noise and capturing their attention requires differentiation.
Focusing solely on generating a high number of leads can be a time-consuming trap. Target your efforts toward attracting qualified prospects aligned with your expertise and niche.
Social media, search algorithms, and email inboxes are fiercely competitive battlegrounds. Don't rely solely on organic reach. Utilize paid advertising targeted to your ideal client profile to boost visibility and attract relevant leads.
Leverage data and demographics to focus your outreach.
6. Aligning sales and marketing teams
While sales and marketing are two sides of the same coin in real estate, achieving alignment can feel like using the stairs to get to the top of New York’s tallest skyscraper.
Miscommunication, conflicting goals, and disparate data often hinder lead generation, conversion rates, and overall company success.
Sales and marketing often operate in isolation, each having valuable data and insights locked away in their own silos. This creates a disconnected client journey, where marketing attracts leads but fails to provide context or nurture them effectively for sales follow-up.
Marketing might generate leads that sales deem unqualified due to demographics or other factors, causing frustration and wasted effort.
Three key strategies to improve real estate selling
Here are a few ways to boost real estate sales and tackle the above challenges in real estate selling problems.
1. Build customer relationships
Treat clients as individuals, not just as sales opportunities. Learn about their dreams and concerns related to their move. This personalized approach fosters trust and builds rapport.
As a real estate professional, don’t disappear from the scene after you finish the open house. Stay in touch with prospective buyers regularly, even if it's just to send them a quick email or text to see if they have any questions.
Since the sales cycle is long, realtors can use technology to automate their outreach at regular intervals.
You can add value for potential homebuyers by sending them information on mortgage providers, comparative market analysis, pricing comparisons, or neighborhood information.
These will help you stay top of mind and show them that you're still interested in helping them find the right home.
2. Stand out from the crowd
While staying in touch and providing basic information is valuable, go beyond what every other realtor does to stand out from the crowd.
Don’t try to be everything to everyone. Specialize in a specific property type, area, or client segment. Become the go-to expert for first-time homebuyers, luxury properties, or sustainable living, attracting targeted leads and establishing authority.
Don't just list properties; educate and engage your audience. Create valuable content like blog posts, informative videos, or engaging social media posts that showcase your expertise, attract potential clients, and build trust. For instance, a blog post titled “Hidden costs of home ownership” or a video discussing DIY renovations and upgrades could engage and educate your audience.
You could offer to help potential buyers get pre-approved for a mortgage or connect them with other professionals, such as inspectors or appraisers. You could also connect them to professionals like interior designers or sustainability experts to offer added value and cater to specific needs.
3. Leverage CRM tools to boost engagement and productivity
Ditch sticky notes and cluttered calendars. CRMs can automate tasks and appointments, ensuring that nothing falls through the cracks.
A unified CRM platform centralizes all client data, communication history, and property information. This fosters transparency, allows sales and marketing teams to understand the full client journey, and enables targeted communication throughout the sales funnel.
CRM can centralize all communication channels, including emails, calls, and social media messages, providing a clear overview of interactions. This ensures that no communication is missed and ensures context-rich interactions.
With a CRM, you can easily access and share essential documents with clients, colleagues, or lenders–no more hunting for files across devices or email threads. A CRM also enables you to tag and store all property documents, contracts, offers, and communication records within the relevant prospect or deal.
Five must-have skills for selling real estate
As a realtor, you need to wear many hats with different clients at different stages of the deal cycle. If you want to know how to get started in real estate, ensure that you hone these skills.
#1. Clear communication
Articulate information clearly, concisely, and persuasively in written and oral communication.
Adapt your communication style to different clients and situations. Crystal clear communication is essential when conveying property details to clients, negotiating with stakeholders, or collaborating within a team.
Real estate professionals need to convey complex information in an understandable manner, ensuring that all parties involved are on the same page throughout the buying or selling process. For instance, you should be able to clearly articulate concepts like asking price, listing price, multiple listing services, and more.
#2. Skillful negotiation
Successful real estate transactions hinge on effective negotiation. You need to be able to navigate the maze of offers, counteroffers, paperwork, and more during the sale process.
Before meetings, gather comprehensive data on comparable properties, recent sales trends, and neighborhood details. Anticipate counterarguments and have data-driven responses ready.
Negotiation is about more than just clinching the best price. Clearly understand your client's objectives, deal-breakers, and budget limitations. Prepare negotiation strategies aligned with their specific needs.
Analyze the seller's or buyer's potential motivations, needs, and negotiation style. Predict their tactics and prepare countermeasures.
#3. Active listening
Go beyond transactions and connect with clients on a human level. Recognize and validate their feelings, whether it's excitement, anxiety, or frustration. Show empathy and understanding.
Start by putting your phone on silent and putting away distractions to give your client undivided attention. Show them you're fully invested in the conversation.
Avoid judging your clients’ opinions or interrupting them mid-sentence. Let them express themselves fully without feeling rushed or dismissed.
Periodically summarize vital points and paraphrase their statements to confirm your understanding and ensure you're on the same page.
#4. Using technology and data for better experiences
Embrace technology to give your clients the best customer experience.
Showcase properties effectively with high-quality professional photos, virtual tours, and 3D walkthroughs.
Use data analytics to get average prices in the housing market, closing rates for properties in the area, and other details. Share these with clients and set the right expectations.
Ensure you have documents like property information, floor plans, and purchase agreements in a digital format to enable easy client access.
#5. Moving with the trends
As with everything else, when it comes to real estate, change is the only constant. Keep yourself up to date with the latest in your industry.
Understand the latest expectations from buyers, be it IoT-powered homes or renewable energy-powered, sustainable homes.
Keep tabs on government regulations, market fluctuations, and economic factors that could affect deals.
Be aware of competing listings and market conditions to position your properties and highlight their unique value proposition effectively.
How a CRM can help you transform the sales experience
A CRM can help you manage the entire sales lifecycle on a single platform, allowing sales teams to track interactions from click to close.
Unify customer data
Don’t waste time juggling between tools. Realtors have to deal with multiple clients from different viewings and properties. Often, crucial client information gets scattered across multiple formats, and deals stall or slip away with a lack of personalized follow-ups. With a CRM like Freshsales, you can link all email, phone, and chat conversations to the corresponding clients, giving you instant context and the ability to have impactful, personalized conversations.
Surface the best leads
Not all leads are equal. Often, the good leads are those who have engaged regularly with your communications or consumed the content that you put out. For instance, Freshsales provides contact scoring, which can help you score leads based on their interactions with you and their level of engagement. You can also factor in demographics, real estate segments, and so on to arrive at a pool of leads with the highest chances of conversion.
Automate repetitive tasks
Picture your client telling you they’ll get back to you in a few days. A smart CRM can help you automate follow-ups, schedule meetings, send emails, and more. Set up nurture journeys for longer deals and add value with emails and other resources. Streamline the sales process by automating activities that typically have to be followed for every deal. For instance, automatically move the deal forward when the purchase agreement is signed, or the sale deed has been drawn up.
Close deals faster with insightful analytics
From monitoring leads’ website behavior to gauging the success of your marketing campaigns and deal insights, the right CRM helps you keep track of your teams’ performance with visual reports and dashboards. Drive decisions backed by data for better outcomes with an AI-powered CRM.
Perform activities on the move
A realtor’s day usually involves shuttling between properties and interacting with various stakeholders. With a mobile CRM, you can access client information in the palm of your hand and tick those tasks off your list, all while you’re still on the go. Stay updated with real-time push notifications, add voice notes, and create tasks and appointments. With an advanced CRM, you can even book an Uber to your next meeting!