Agents are generally optimistic people. A quiet month is just that, bound to be better next month. But what if your quiet month is the first indication of changing market conditions? What are the alarm bells that ring to alert you to it?
Whilst some of us are great at monitoring the monthly KPI’s (and some will be asking what is a KPI?) we are not always good at monitoring the trend and often miss the signs of a changing market until a few months down the track.
A lot of agents I know were amazed at how far over reserve properties were selling just a month or two ago. Ahhh, hate to break it to you, but prices went up, the market changed, it just took some of you a while to realise and change your marketing strategies accordingly.
In some areas of Sydney the market has started to change again and that can be dangerous at this time of year, because some of us have our hands off the wheel already.
So what are the Key Performance Indicators that alert you to the change? It’s not just the listings that you are carrying but the number of appraisals you are getting called out to as well as the number of appraisals that don’t come on to the market. The balance sitting in your sales trust account is also a great indicator of the picture moving forward. Get your accounts person to alert you when this balance goes below whatever the right number is for your office. It might encourage you to make changes just a little sooner than otherwise would have.
The sooner you realise the market is changing, the sooner you can change your communication with vendors and buyers, alter your marketing and canvassing strategies and potentially stay ahead of your competition.