By following a few best practices and tailoring your message based on real-world conditions, you’ll be well on your way to effective client communication. The real estate and...
By following a few best practices and tailoring your message based on real-world conditions, you’ll be well on your way to effective client communication.
The real estate and mortgage markets are constantly changing. But one thing you can pretty much always count on? One constant in a notoriously variable industry? The impact and importance of customer communication.
For mortgage pros, learning how to communicate with customers is critically important whether the market is struggling or soaring.
After all, virtually all consumers (98% of Project.co’s 2024 survey respondents!) believe it’s important that a business communicates effectively with them as a customer.
So, whether you’re brand new to learning how to communicate with customers or simply brushing up on your skills, here’s what you’ll want to keep in mind in any real estate market:
Lead With A Few Best Practices
When it comes to learning how to communicate with customers, there are a few best practices you’ll want to follow regardless of the current state of the market.
These include:
- Being proactive. Don’t just wait for clients to reach out. Instead, get ahead with regular updates.
- Using multiple channels. Consider phone calls or face-to-face meetings for big updates, emails for documentation, and texts for quick check-ins.
- Setting clear expectations. Early on in the process, try to define key timelines, identify potential roadblocks, and always clarify the next steps.
- Educating continuously. Work to provide value by offering bite-sized market updates, FAQs, explainer videos, or printed checklists to streamline the process.
- Handling tough conversations effectively. Deliver any bad news with empathy and solutions, face conflict head-on, and stay mindful of impact versus intent.
- Practicing active listening. Always seek to understand your client’s unique concerns, fears, or hesitations. Consider mirroring language, asking clarifying questions, and summarizing what you’ve heard to confirm understanding.
Tailor Your Message for Different Market Conditions
Once you’ve nailed the general best practices, it’s time to get a little more specific.
If you’re new to the real estate and mortgage industries, start by determining what kind of market your local real estate ecosystem is experiencing (seasoned pros who know the market like the back of your hand, you can skip on down to “Hot Market”).
Research local figures, paying close attention to inventory and demand. These numbers will help you determine whether it’s a:
🔥 Hot market, characterized by low inventory and high demand.
🧊 Cold market, characterized by high inventory and low demand.
❓ Uncertain market, characterized by a period of flux.
Once you’ve gauged the temperature of the market, you’ll want to adapt your communication tactics, fold in some statistics, and strike the right tone to best serve the buyer in each specific market.
Hot Market
When you’re dealing with a hot market, try to emphasize urgency without creating panic. Your messaging should center around moving quickly without cutting corners or tripping over stumbling blocks.
You’ll also need to set very clear expectations. Make sure to discuss the high competition clients are likely to see, strategize for any bidding wars, and lay out timelines clearly, for maximum efficiency.
It’s also a good idea to chat about pre-approval as, in a hot market, a pre-approval letter could make all the difference. To really drive the point of urgency home, consider sharing stats on the shrinking days-on-market.
Overall, you may want to strike a tone that’s confident and energetic, so your clients will feel ready to move.
Cold Market
In a colder market, focus instead on building agency. The messaging here can center more around overall financial education, as buyers will generally have more time to be choosey and engage more meaningfully with the process.
Start by explaining supply and demand generally, segueing into how a colder market could mean more leverage in negotiations and what concessions might entail.
Sharing stats like climbing average days-on-market or average price drops could help grow their confidence quickly, too.
Then, make a point of keeping clients engaged with regular check-ins even if timelines stretch.
It might be good to strike an overall tone of contentedly patient.
Uncertain Market
If you’re dealing with an uncertain market, it’s best to lead with honesty. Explain clearly that things are in flux, but that there are still steps you can take together to best prepare.
Then, follow up with a personalized action plan. Stay in close contact with the client, providing updates and options as things change and shift.
Your messaging here should position you as a steady hand guiding them through these changing tides. Your tone in these kinds of markets should be honest, steady, and authoritative.
Wrapping Up: How to Communicate with Customers No Matter the Market
Always keep in mind that mortgage professionals are in the business of building relationships, not just completing transactions. That’s why learning how to communicate with customers in any real estate market is so important.
But by simply following a few best practices and tailoring your message based on real-world conditions, you’ll be well on your way to effective client communication.
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