Most real estate trends are a reaction to the law of supply and demand. As you project trends, study your market analysis for hints of changes in your market’s inventory. At the same time, study your region’s economic growth and stability for hints at what is taking place to influence consumer demand.

In general, a low inventory of homes will lead to increased appreciation and more competition for "high demand" properties, which include homes that are in superior condition and in superior locations. In a low inventory marketplace, sellers can often overreach in terms of pricing. When inventory levels are high, the competition for buyers slows appreciation. It also extends days on the market and can even drop sales prices due to a lack of purchaser urgency to "buy now."

Most agents, even the good ones, are far from being experts in their field. They have created clients and sales through strong relationships rather than through superior knowledge and expertise. To differentiate yourself, acquire a deep understanding of current and emerging market trends and then share your findings with prospects, current and past clients, and others in your sphere of influence. Doing so will help you position yourself as a leading expert in your market area.

Whether you are making contact by phone or in person, get the conversation going by presenting questions that prompt interest, inspire urgency, and convey your market knowledge and authority. For example:

• Are you aware that we have less than two weeks of inventory in the price range you are looking for?

• Did you know that the average home price has appreciated over 15% in the last six months; that this same home you called about today would have been $25,000 less six months ago?

• Has anyone told you that on average, a high-demand house is on the market only 21 days in today’s environment?

Once you have seized their interest, immediately ask for an appointment to meet soon due to the market place inventory being low or high, or appreciation being low or high, or the days on the market being low or high, or other market conditions that work to your favor.

Let me share with you a script example:

"Bob, did you know that the average home price in your area has risen over 15% in the last six months? Here’s what that means to you. This same home we are talking about right now would have been $25,000 less if you had called me six months ago. Based on the trends in the marketplace, we should get together right away. I am sure you don’t want to lose another $25,000 in the next six months. Would Wednesday or Thursday this week be better for you to meet?"

The use of key statistics such as list price to sales price ratios, days on the market averages, and absorption rates, demonstrate your mastery of marketplace knowledge. It also creates a competitive gap between you and your competition by establishing yourself as the one who can use market forces to your client’s advantage, raising the probability of a higher sales price, a shorter the time on the market, and increased net proceeds.

To put your findings to work, take the following steps:

• Use your marketplace knowledge to prompt prospects to act now rather than to procrastinate until a time when market conditions may not be so ideal.

• Share your market analyses as a way to stay in contact with past clients and others who can positively influence your business. Most of these individuals already own real estate, so they are "vested" and interested in the local marketplace. For many, their single largest investment asset is their home. They care about the market’s equity position and appreciation. What’s more, most are not in their final home for life. They at least secretly wish for a better house in a better neighborhood. By establishing and reminding them of your expertise, you place yourself in position to counsel them on future home or investment property purchase.

• Quarterly, assemble and mail your most recent statistical findings to your business contact list. While other agents will be sending out recipe cards and other trash and trinket items, you will be sharing something of real value: the state of the real estate market and the state of your recipients’ major financial holdings– their homes.

Another way to enhance your credibility and public image is to publish your monthly or quarterly market analysis in the form of a newspaper display ad.

Well before the ad breaks, send or deliver your market analysis and trends projection to the journalist that handles real estate coverage for your local newspaper. Your findings may or may not make their way into a news story, but by furnishing the report on a regular basis you will establish yourself as a regional authority that can be called upon for real estate quotes or interviews. The effort will cost you nothing but will pay off by elevating your stature in the community. There is nothing better than a third party validation to cement of your status as an expert in your marketplace.

Position yourself as the leading expert in your market area by knowledge of your market. And then make it work for you by sharing your finding with your prospects, current and past clients and your sphere of influence.

Published: September 5, 2008

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Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. He's the widely published author of Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, Telephone Sales for Dummies®, and over 300 articles in print. You can get more information by visiting RealEstateChampions.com.