Picking up from yesterday's installment of things you can do TODAY to ensure a Happy Next Year, today's topic is how becoming a Master of Your Market can get you business. 
First, what does being a "Master of your Market" mean? To me it means that if someone tells me where they live, I get a mental image of their neighborhood or subdivision or condo building. I don't necessarily know how big their house is or what year it was built, but I can probably guess within a decade or two, and I have a general sense of the overall ambience, what amenities are nearby and even a personal anecdote or two about the area I can toss out.
What being a Master of your Market doesn't mean is that you're a walking encyclopedia of facts, figures and statistics (click here to read my thoughts on the irrelevancy of the DOM statistic). No amount of research sitting behind your desk will give you the level of intimacy and familiarity with your market that you'll need to be a master of it. Again, a good definition of a market master is the ability to visualize a neighborhood when given an address - and there's no way you'll get that from MLS research.
How does being a Market Master help you attract business?
Well, as a real estate agent out there in the world with your antenna up, what do you have to offer the Average Joe who strikes up a conversation with you? Does he care how many listings you have? Does he care how gorgeous your home brochures are? Does he really want to hear about your 32-step marketing plan for selling houses? Probably not. But if he's at all interested in what $300,000 buys you in his neighborhood (and you know), or how much it costs these days to get into South Park Hill (and you know), your ability to make intelligent conversation about the market will get him, if he's gettable.
But if the best you can come up with is something like: "I'm not sure about that, but I'd be happy to find out for you;" well, it doesn't have quite the same effect.
The same thing applies when you're sitting on floor time or at an open house. If the best you can do is hand a visitor a list of other homes in the neighborhood, but can't really make conversation about them, the possibility of watching that stranger walk back out your door just went way up. But if you can chatter about nearby listings or comparable neighborhoods, you just dramatically increased the chances that your visitor will ask for your business card.
When you're on floor time, or take a sign call, again, if you can speak intelligently about the market either surrounding your listing, or that your office specializes in, you'll easily capture those leads.
So, what should you be doing right now to ensure that you're a Market Master? Well, following the advice of Todd Clark in his featured blog: "How Long of an Article is Too Long?" I'll answer this tomorrow... but please share YOUR thoughts today!
Yes. Yes. Absolutely!! Being able to chat easily about the market in general and other homes for sale is essential!!
But sooooooo underutilized, don't you think? Knowing my market is one of my best prospecting tools.
I LOVE THIS!
This is one of the "secrets" of my success. When a prospective home buyer calls I can discuss housing with them for any part of my market area which is huge and covers most of Maryland and all of Northern Virginia.
I've put in many year and many miles to know my market.
I've often said that I don't even care if a listing has a photo, I know the area and can discuss housing in any area with a caller.
This is why experience counts.
Great post.
Ohhh, such good and basic information. I know I can get caught up in too much busy-ness to actually take a look at the neighborhoods I go through on any given day. Moving out of my safety range of several favorites moves to the fore now. Thanks Jennifer.
Thanks for this information. I think I will benefit from it as a new Realtor.
Lenn - I just sent your name to one of my readers who has a referral for "somewhere in Maryland or Virginia!"
Dave - YES! One of the most important projects you have as a new agent is to GO LEARN YOUR MARKET.
Sherry - Just staying on top of your favorites is a lot of work... but so worth it.
Hi, Jennifer. You are so right. I live in an equestrian community where alot of the cabins look alike, mine included. I spend alot of time driving around, studying each property, so when I meet someone on the trail who tries to describe a cabin that they've seen for sale, wanting to know more, I can place it. They love to hear, "I know exactly which one you mean!"
Leslie - YES - Exactly! Having that kind of knowledge makes "prospecting" so much easier - you just open your mouth and have a captive audience.
Jennifer, Do you stay on top by going to see the houses, like on caravan, or open house?
Deborah - stay tuned for tomorrow's segment!
Jennifer:
People turn to Realtors for all sorts of information. What is a nice area, the latest new subdivision, the best schools? We have to keep on top of this information to be effective.
Jennifer... this just makes sense to me, that it's common sense. To be able to relate to certain types of properties in specific areas, and not just be a stats person. What about for those in mortgages? ;o) And PS... I love the new picture. I almost didn't recognize you. And pps... St. Patty's is only 6 months away. It's so hard to believe that we met that long ago. Hope all is well...
Jennifer,
People are attracted to others who know their craft. I'm looking forward to tomorrow's post.
Mike in Tucson
I am so with you about DOM. There is no way to make sense of it.
Jennifer, I agree 100%. So much so, that for the town I service the most (the town where I reside) I created a community web site to promote all the wonderful aspects of the town. It is not an advertising site, I don't charge for it although I should, but it provides inside info that is not available on town sites or sites that only feature businesses who have paid to be on the site.
I get a lot of positive feedback from the site, and my clients are impressed that I provide a free resource like this. And the local businesses are thrilled to have a friendly face promoting them!
Hi Jennifer, you are right on, making intelligent conversations about the market is key, this might mean different things for different businesses. When a customer asks me for A Realtor referral I always choose a Realtor I know is absolutely knowledgeable about the area and market. The other key factor for me is matching personality/interest types. I believe er love to do business with people we feel we have something in common...
Thanks for the post today with this good information Jennifer.
Patricia Aulson/portsmouth nh homes
I think I am able to do this because I find it very interesting myself. Some times I tell my clients just to cut me off when they have heard enought, lol.
Jennifer: For a while in my career, I also was an appraiser. You can't believe how many times it helps me now that I'm back to writing loans! People are reassured and excited by the fact that I know where there home is and know and understand the neighborhood in which their property is located. It's definitely come in handy with the appraisal issues we are facing today too, as I've been able to facilitate some action and make suggestions as to comparables and more.
I guess my point is this .. being educated and being able to bring more to the table then another in your field is great for business because it sets you apart from your competition. I've found that it's not hard to do really. If you truly love what you are doing, being a "sponge" regarding every facet of the business comes naturally ... you want .. need .. and love learning it all!
Great post!
Yes, you really sound knowledgeable when you can tell your client that you have seen the property that they are interested in and that you can tell them about other homes that are for sale that they might like to see. I always go on tour every week to see what is out there, so I can talk knowledgeably with any floor calls too.
Jennifer,
I agree! Tha tis why previewing homes and seeing as many as possible is so helpful. Thanks for the good advice, as usual!
Jennifer:
I honestly think when face to face meetings occur (like at an open house), or a live conversation occurs (like floor time) the biggest sin we all make is blabbing instead of really placing a focus on the person and their goals and motivations.
I would place a far higher value on an agent that obviously cared about me, than one that knew about specific neighborhoods. I can do that research myself....
(I am basing this opinion on visiting hundreds of open houses and seeing how many agents do the me-me- me thing instead of just showing the potential customer they really care about their home buying experience)
Hi Jennifer, And don't think customers can't tell immediately when an agent doesn't know the market and can't speak with authority about specific listings !
Great post! Right now so many people are caught up in trying to get business that we forget to keep up with the inventory so that we are experts! Thanks! Looking forward to the next post!
Hi Jennifer~ You are so right. The most important thing is being able to connect with that specific client on their level and according to their interests, not ours.
As a newer Realtor only in the business for a couple years...I've made it a habit to preview every home listed in the small "equestrian friendly" Village where I live. I try and preview it within the first few days it's listed so when someone mentions another house is up for sale I know exactly what house they're talking about.
Thanks for the great advice!
Girl, you taught me how to be a Master of my Market and now I am. Preview, preview, preview and knowing it like the back of my hand.
Curious --why do you think DOM does not matter?
Jennifer,
I have been previewing proprerties like crazy ever since I attended your seminar on Mastering Your Market. In the last several weeks I can attest to you with 100% certainty that knowing the inventory makes a HUGE difference in my own confidence level.
I already knew that previeiwing was a good thing - but I had not really grasped how important it was until you put it in such clear perspective for me. It is now a part of my weekly plan. If I am not showing houses to clients I make it a point to preview at least 10 homes per week.
I had one floor time call on an office condo listing right after I started doing this. I was able to answer the caller's question without looking anything up. This enabled me to engage her in more detailed conversation. After a couple of calls back and forth with her over about two weeks we went out to look at condos. I've taken them out a few times and they are now narrowed down to 2 places.
Prior to speaking with me, she was doing her own research on line and calling listing offices for more information. I have no doubt that she chose me as her Realtor based on the first 30 seconds of our first conversation where my own expertise and confidence came across strongly.
There is so much to learn about any market that the typical consumer will know if you are bluffing. Nothing takes the place of experience!
Jennifer, it is all about being the Master, the "local expert." You can't fake that!
"Ahhh... Grasshopper, be the space between the spokes of wheel." When you know your market inside and out, there's nothing to hold up. Just share. An authority is one who has simply done the work of it, and knows. You have plenty of the 'right stuff' to talk about.
It's amazing how knowing the market makes one be able to speak authoritatively with confidence instead of back-pedalling. It's a great feeling and I love it!
This is necessary if agents want to be seen as the expert. It does take work and time but well worth it!
Always drill an inch wide and a mile deep. Know your market better then anyone else.
Hmmm...how many of us are really masters of our market and don't know it because we don't use the info we have in our heads at our disposal to good use? Thanks for the tips Jenn...now to go backwards and read what else you've been selling up...
Interesting concept Jennifer, almost a no brainer in my opinion. It's sad when I know the market better than some agents that my buyers come with, because I actively look for steal deals, but you can't do that behind a mouse and keyboard.
"will get him, if he's gettable." That has to be one of the best sales lines ever! Isn't that what sales is all about? Great!!!!
Your right on target! As a real estate agent, you are paid to be the expert. Our jobs are no longer to find the home but to educate the buyer about the market, recent changes in law and of course know and be able to regurgitate specific information about the neighborhoods, price points and pro's and con's of each neighborhoods offerings.
You should know your market. The problem is that agents sometimes try to sell and show in market areas that miles and miles away from their market area. Haven't you gotten that call from an agent who wants to keep you on the phone as you give them step by step instructions on how to find the listing? They don't know the area, they don't know the neighborhood and they don't know anything that would really be of assistance to that buyer if it isn't printed on the MLS data sheet.
Ziglar said"You'll never get anywhere as a wandering generality! You must become a meaningful specific(Master of your Market)!"
Thanks for this post. I have a home on the marekt for 225 days and it was on the market 12 months with some one else. I contune to read posts like yours for an idea on how to sell it. Thanks for all your great posts
Great post its always great to hear from you. You have some good ideas about mastering your market.
Jennifer - I sometimes tend to get too caught up in the numbers and analysis, and forget to just talk about the neighborhood in general, and the local amenities. Thanks for reminding me that buyers are interested in where they are going to live just as much as how much it is going to cost.
My first year in the business, I spent a LOT of time just driving to different parts of town that I wanted to specialize in. I looked through lots of houses in subdivisions, I got to know local eateries and shops and I talked to different people about living there. Nothing substitutes actually living in a spot, but I also believe that if you are going to claim to specialize in an area, then you need to know it!
This is awesome! Previewing is just not at all common here and people think I'm a tad off when I do this. I always preview competing homes before a listing appointment and others as I can. It seems to get put on the wayside when i get busy, but I definitely need to take this and not just prioritize it, but make it an active part of my marketing/education plan and a permanent spot on my schedule. Thanks!!
Great post, I will look forward to reading the follow ups to it. I have subscribed to your blog as well.
I love all these comments and I will get back to everyone. I'm having a huge sale ;-] at my bookstore today and haven't been able to get away (NO complaints, believe me). THANKS to everyone who has come to the party!
An agent I know was on floor time and someone called and asked him "What do you know about my community? I have a house to sell...." and he said - "I don't go out there much, I really don't know anything about it at all." He then hung up and the agent in the cubicle next to him nearly choked - and she demanded the person's contact info. She called her right away and got the listing (she did share it with the first guy...though I don't think I would have been that nice...)
Being master of your market doesn't necessarily mean you know everything about the community but it does require you to be a RCHB and know how to answer the seller's questions without looking like a dope.
What he should have said was "I know where that is" - (he did, but that's about all he knows, which is ridiculous considering he's had his license longer than me and it's a pretty commonly referred to community around here...yikes...). Then he should have put it back to her and said "Tell me about your house, and I'll look up some comps..." all the while looking up the community on the MLS at the same time to see what's currently pending and on the market.....
Meanwhile I sit on floor time and only get telemarketers calling...go figure...lol
Jennifer,
After you have finally got in touch with a prospect, you have to have something to say. You need to have absolutely the latest up to datye information at your finger tips. Otherwise, you'll lose your credibility.
Brian
Jennifer~
You are right, it is very important to be the 'expert' in our local markets. Thank you for your post
~Laurie
Jennifer-
Sounds like you're taking the consultative approach--good! Not only should it feel better, but it will result in more business.
This is one of the reasons I am out looking at properties in my area when I have free time. If asked I can talk about the foreclosure down the street and the new construction around the corner.
I got a listing today... I know the area! I had 2 good comps right off the top of my head. 2 other agents asked him for "a few days" to get their CMA together. I mentioned on the phone (as I was cruising the MLS on my laptop) 2 sales within 2 months, and the price the neighbors got. I got the listing right then and there. Know your market!
I think you are right on with this blog! I don't actually have the time to pre-view, however, many times I have already visited a listing with another client and if I can give another person "the scoop" they think I am a genius! I also don't specialize in just a few subidivions, I work all over the county and therefore I have a thorough knowledge of the neighborhoods and price ranges. Great post!
Well, you teased me just enough that you know I will be back tomorrow to find out what I need to do in 2010!
This is exactly what I am trying to do. I think it will be a life long activity!
Thanks for sharing this Jennifer. As a brand new sales associate I am close to entering all my contacts into a database for future marketing. I have been brainstorming where in town to market, and your series has shared some very good tips for me to be aware of and master when I begin the marketing process. Thanks for the instruction!!!
Great advice!
Thanks for the advice. I wrote my blog entry about previewing homes after reading your blog. I am subscribing to your blog now...