Buyers’ vs Sellers’ Market, Feedback Analysis, The Psychological Impact Of An Election Year

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Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• Buyers’ vs Sellers’ Market

• Feedback Analysis

• The Psychological Impact Of An Election Year

Buyers’ vs Sellers’ Market

We know the real estate market is cyclical. 

One minute you're up in the thick of a sellers frenzy and next, the buyers are calling all the shots.

It can happen in a flip of a switch. 

So you have to be prepared to operate in any market conditions and understand the different advantages and challenges that come with each market cycle.

Buyers’ Market

In a buyers market, the buyers are the ones in control. There’s an abundance of inventory, competition is low and homes tend to linger on the market.

Deals are easier to come by, sellers are more negotiable and it’s much easier to secure lucrative deals that are significantly under market value.

However, there's also a flip side

In a buyers’ market even very lucrative deals can be difficult to unload as the buyer pool shrinks and buyers become cautious about taking on investment opportunities.

Rather than prioritizing sourcing properties, focus on growing a network of qualified buyers who are sitting on a lot of cash and eager to buy at a discount.

Sellers’ Market

In a sellers’ market, the tables turn. With an abundance of eager buyers, limited inventory, and inflated prices, the sellers are the ones that hold all the power.

In a sellers’ market, properties tend to be much harder to source, and you have to be a lot more creative to secure lucrative deals.

However, when you can secure lucrative deals, they are much easier to offload since there are plenty of investors biting at the bits as soon as something comes across their desk.

In this market assigning a contract can feel like a feeding frenzy.

Rather than focus on growing your list of qualified buyers, prioritize sourcing properties as the good deals will be harder to find but much easier to assign.

Become a “niche ninja,” targeting probate properties, absentee owners, distressed assets, and high-equity homeowners.

Prioritize speed and make more aggressive offers.

Finally, remember that no matter the market conditions, the key to success is preparation and adaptability. 

By understanding the dynamics of both buyers’ and sellers’ markets and honing your skills, you can navigate any conditions and consistently land winning deals.

Feedback Analysis

Legendary business consultant Peter Drucker practices something called feedback analysis.

Basically, whenever he’s about to make a big decision – a new hire, a new strategy, a new project – he writes down what he expects to happen in 9-12 months.

After the time period passes, he compares his expectations with actual results.

What this exercise really reveals is your strengths and what you should focus on. For everything else, find a partner/hire.

At the beginning of your wholesaling business, you’ll be forced to do everything. That’s just the way it is.

But maybe after doing a little feedback analysis, you find that you’re okay but not great at dispo. Or could use a marketing partner.

I think this is a great exercise to do with hires.

Once you get a rhythm going and you’ve hatched together a system to find leads, acquire contracts, and dispo… you either have to hire to scale or hire to take yourself out of the business.

The way this industry moves, maybe don’t focus on 9-12 months. Shorten the period down to 90 days each and assess from there.

With hires, it’s better to find A-players as soon as possible if you’re looking to scale.

That’s why there’s the old adage of “hire fast, fire fast”.

Maybe you’re great at acquiring contracts, but you’re not good at dispo. Ultimately, you’re making the first hire in the beginning.

But maybe after doing a 90-day feedback analysis, you find that you’re not great at hiring closers.

If that’s the case, then that responsibility is better off outsourced to a staffing agency or a company that specializes in that role.

People tend to think they know their strengths. But they’re usually wrong.

A little feedback analysis can reveal a lot. The faster you can focus on your strengths, the faster you’ll be able to grow.

The Psychological Impact Of An Election Year

 Typically, we see a slowdown in real estate during an election year. And it’s mainly a psychological phenomenon.

There’s a lot of uncertainty over who will be sitting in the Oval Office. And buyers and sellers are “waiting” to make their move. 

But if rates are supposed to lower as predicted this year, this shouldn’t really affect buyers as much. As long as rates are down, they don't care who’s in the White House. 

Post-election is when all the action starts.

When the dust settles, all that pent-up demand will be released. Homeowners who delayed selling plans will now feel more confident to make their move. 

Depending on the political party in power could hypothetically affect the buy-boxes of investors.

If we look at history, Republicans are often pro-business. Their policies correlate with stimulating economic growth and expanding the housing supply. 

Democrats have a consistent commitment to affordable housing and tenants’ rights. They have the interest of low-income individuals and renters. 

But as a wholesaler, your job is just to adapt to the market.

At the end of the day, houses will be bought and sold. The types of housing in demand may change, but there will be deals as always.

Today’s Sales Objection

Last week’s sales objection:

“I want to find a place to move into first before I sell.”

Best answer: No worries, I totally understand. The best part with working with us is that we can close on your schedule. So how about this? Let me go get a few offers for you and if we can find a good price, we could disperse 50% of proceeds at the close of escrow, and give you an additional 1-2 weeks to move out? Would that work for you?

This week’s sales objection:

“I need my attorney to look at this.”

Reply with your answers! The best answer will be featured in next week’s issue. 

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

See you next week.

Team Business of Wholesaling