Don’t overreact! The market is shifting, there’s no CRASH. Tuck your drama in and get back to work! If you expect buyers and sellers to transact with you, you must be educated, motivated, and proactive.
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Fact: Some homes will sell immediately with multiple offers, sometimes over the list price. Some won’t. Be able to handle both situations with skill.
The market is not about to crash. It may SEEM like a crash to you if you believe that 30 days on the market is the end of the world. This time is NOT like last time. Many agents, buyers, sellers, and lenders were not even adults during the ‘last time’… the crash of 2007-2009. The elements are not remotely the same. Waiting to buy or sell because you think the market will crash is a mistake.
1. Set your seller’s expectations for two scenarios… yes, it MAY sell right away, possibly with multiple offers, however…if it does NOT sell right away, what does that do to their plans? Understand your seller’s motivation and time frame and discuss different scenarios (after you have the listing signed but before the first showing)! What are the average days on the market for the subject property? Don’t ASSUME that it’s 10 or less, or even 30 or less depending on the market conditions!
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2. Prepare your listings as if you have more competition. Buyers are getting more picky and will pass on a home that seems neglected. Buyers are starting to believe there will be more inventory soon and may pass on something that’s not quite right. Proper previous preparation prevents pitifully poor performance! (The 7 P’s). Make it shine, even if you think you don’t have to. Your seller will thank you.
3. You must be more careful about accurate pricing on your listings. Do three comparative market analysis’. A listing presentation you go on today, where the seller will take 30 days to prepare the home, will require you to revisit the price before you actually launch it as a new listing. In a shifting market, this may adjust up, down, or stay the same. What do the new pendings and sales tell you?
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5. If the seller HAS TO sell, you have to take the listing. Don’t lose it over being adamant about your price. The market still has enough demand that you MAY be able to achieve the seller’s higher price (within reason!).
6. Brush off your price reduction scripts…wait, what? You don’t have any because you’ve never needed them? Yikes! Yes, it is possible in today’s market to actually overprice a listing and have it sit on the market. This is called ‘aspirational pricing’ and is the #1 reason we see expired listings every day. Don’t let it happen to you!
7. Always speak to the listing agent when you’re representing buyers. Find out what’s most important to the sellers. Other than price, what will make your buyers THE buyers? The buyers who are still in the market after higher rates are more serious and probably more qualified. Assume you’ll still be competing most of the time.
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