Everyone knows the old adage when it comes to real estate - location, location, location. But when it comes to successfully marketing a listing in a softening market your mantra should be - differentiation, differentiation, differentiation.
As we should all be aware according to the National Association of Realtors Home sales are slowing as interest rates continue to increase, and this trend is not expected to change anytime soon. So, how does the real estate professional sell their listings in this softening market? Differentiation not marketing is the answer.
True, marketing is the first important step in securing prospects for a listing. But in a market where buyers are at a premium the question we need to ask is why should a buyer purchase your listing? The most obvious answer is price, and surely the listing should be priced at market. Assuming it is what can we offer a buyer to choose our listing over another?
Simple, offer the purchaser safety and security in choosing your listing over your competitors. Don't forget purchasing a home is a very expensive endeavor. And due to the run up in home prices over the last several years it is not uncommon for purchasers to be forced to invest nearly all of their available cash into their home purchase. Knowing this we are presented with a golden opportunity to differentiate our listing from the competition by offering to the buyer something as simple as a home warranty.
What is a home warranty? Home warranties protect against the normal wear and tear of major mechanical systems and appliances such as heating and air conditioning, plumbing, oven/ranges, refrigerators, washers/dryers, etc. When a problem occurs with a covered item, a service technician repairs or replaces it using brand-new, top-quality parts and appliances. The purpose of a home warranty is to give the buyer piece of mind.
Studies show that buyers are more likely to purchase a home with a warranty than without. On average, a homeowner will make two claims during the first year with a home warranty.
Many real estate professionals are incorporating a home warranty into their marketing plan. Oftentimes, agents will offer a warranty free to their clients to help them gain an edge over all other agents competing for the same business. The listing presentation is a time for the real estate professional to shine. In a home with older appliances and mechanical systems, a home warranty would be a perfect way to put the buyer's minds at ease.
Some home warranty companies provide free protection during the listing period - they cover items during the listing period at no additional cost. Contract payment is not made until closing and includes coverage for the buyer.
A home warranty can be the difference that closes the deal. Encouraging your clients to purchase home warranties helps you avoid last minute repair negotiations that can postpone closings and boosts your earning potential by helping sell homes faster at higher prices. For more information on home warranties, please visit www.hwaHomeWarranty.com
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