In Q1, vendors often had to lower their listing prices to meet current buyer affordability, indicating the market is still struggling to find a balance between sellers’ price expectations and what buyers are prepared to pay.
But it isn’t just reductions that saw a jump in the first quarter of the year…
The rise in price reductions had a direct impact on other areas of the property market, with around 74,000 of Q1 withdrawals having undergone at least one price drop before exiting the market altogether. This indicates that approximately one-third of sellers were open to lowering their property price, yet still found interest low or offers inadequate.
How to thrive in the current market
While increases in reductions and subsequent withdrawals could sound like bad news, they actually present a huge opportunity for agents to win instructions and grow their market share.
That’s because second-instruction vendors are more realistic about both pricing and market conditions, meaning they're more open to appropriate listing prices and taking agent recommendations onboard.
In fact, second instructions are actually 66% more likely to sell than first instructions. And, listings that switch agents after 8 weeks typically sell at an average of 14% higher than those that reduced after 8 weeks and remained with the same agent.
But how can you effectively win those second instructions?
1. Bolster your core strategy with reactive marketing.
While most agents may be aware of shifts in the market, they might not feel able to quickly adapt their prospecting strategy in line with recent trends, because of the time it takes to write new letters or produce specific campaigns.
Quick content generation is the key here. With tools like Spectre AI, agents now have the freedom to quickly adapt their marketing and refresh their letter content in just minutes to match current market conditions - beating their competitors to the post and, ultimately, securing more instructions.
2. Target motivated vendors when they need it most
The current market movements this year - especially in relation to reductions and withdrawals - present a huge opportunity for agents to win instructions, so long as you’re targeting vendors at the most optimum moments.
Important milestones in a property’s time on the market, as well as key events like a price reduction, are the perfect time to approach vendors who are motivated to sell but struggling, and offer your agency’s support.
With the right prospecting tool, you’ll be able to send relevant, personalised and engaging marketing collateral at moments when vendors are feeling discouraged with their sale.
In Spectre, for example, the most successful agencies are targeting their competitors’ withdrawn and reduced stock. This year so far, our withdrawal letter trigger has been the one of the top performing touch points, along with the triggers sent ‘x’ weeks following a price reduction. Interestingly, the letters sent weeks after a price reduction perform better than those sent straight after a price reduction, presumably as vendors at that point are hopeful that the price reduction will be successful in generating the interest they need. .
3. Nurture withdrawn listings so they’ll relist with you.
On average, almost 50% of withdrawn listings return to the market within 12 months - you have the power to put yourself in prime position to win those instructions by nurturing withdrawals, so when they do decide to relist, it’s with you.
In order to do that, you need a solid marketing strategy. I urge you to check… does your current prospecting supplier allow you to send follow-up letters weeks or months after a withdrawal or reduction? Are these touchpoints turned on in your account? If not, you could be missing out on valuable instructions, because the most successful agents are using the high levels of withdrawals and reductions to grow their market share.
The right prospecting tool will allow you to follow up key activities, like a withdrawal, with a full nurture campaign, meaning your agency can build a rapport with motivated vendors to bring them back to the market and, more importantly, before your competitors get the chance.
The market is always changing, so it’s critical that agents are flexible with their tactics when trying to gain first and second instructions. Not all prospecting tools are built equal, but the best software will help you take advantage of the market’s current pain points to continuously win instructions.
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