It’s true, some of you sellers are being stubborn.
This may sting a little bit, and we don’t mean this to be abrupt, but we think it is time someone told you:
The market just isn’t the same as it was a year ago – it’s no longer the sellers’ market you might think it is.
Let’s Take it Back | June of 2018
We were seeing houses fly off the market, sometimes in a matter of days. This was great for sellers – you could set your price point, list it, and wait for a bidding war.
Fast Forward to Today
Buyers are a bit cautious. Why the cold feet? Every buyer is different but it comes from a combination of the following:
- Some buyers believe we have reached a peak, or we’re at least approaching one.
- Interest rates have dropped and keep dropping vs. last year’s rates that were on the rise and creating urgency.
- The upcoming election leaves little room for predictability.
So, what does this mean? It’s time for sellers to adapt:
Don’t worry, you’re still in the game. Homes are selling, the standards have just changed a little and you’ve gotta switch gears if you want to get in front of serious buyers.
Right now, we’re seeing homes sit on the market longer and price drops are more frequent – you don’t want this to be you. It cheapens the value of your home and leaves buyers begging the question, what’s wrong with this house?
Remember | Buyers are on Zillow, Redfin, and the likes – they’ve seen your home even if they have never been there. So stand out and attract to their wants & needs.
Price it right the first time.
This sounds obvious, but current pricing shows that sellers are pricing homes too high.
Another truth | agents and homeowners don’t set the price of a home, the market does.
The consequences of pricing too high…
You can, and undoubtedly will, find an agent to list your home at any price you choose. We call this, buying a listing.
Buying a Listing
This is a common practice when competing for listings. Sellers bring in a handful of agents looking for representation. At some point in each meeting, pricing is covered – cue, “buying a listing”.
A seller’s Achilles heel | hiring the agent that promises the highest sale price.
This leaves you, the seller, feeling happy and taken care of. But we’re seeing a struggle between buyers and sellers because of it. “It” being those higher prices.
In some, not all, but some neighborhoods, buyers are having a tough time meeting sellers at their asking price.
Buyers believe that interest rates will remain relatively low for the foreseeable future. And most are expecting local housing prices to stay flat or even come down a bit. Leaving them asking another question, what’s the hurry?
In other words, homes aren’t selling like they were last year. So, what do sellers do? P R I C E R E D U C T I O N. But again, this leaves buyers with the dreaded question, what’s wrong with this house?
It’s kind of like this ⇢ you walk into a BestBuy and see all the TVs on clearance. You ask yourself, why didn’t they sell in the first place? Do Vizio and LG not make good TVs? Should I bite the bullet and get this Samsung for full price?
You don’t want to be the home with the red clearance sticker.
A note to leave you with. And we’ll admit this is an industry win as we dance on the grave of Purplebricks. They tried this kind of approach – ignoring the voices of the market and buying listings at a discount rate. And as it turns out, it doesn’t workout in the long rung…
… as of early July 2019, PB is leaving the United States (cheers!)
We know you love your home.
You’ve created memories there. Shared holidays and birthdays. You’re attached – as you should be! That’s why we want to help you find a buyer to love it as much as you do.
To drive our message home… pricing is everything. We haven’t seen your home yet, but when we do, we’ll take our time getting to know the greatest (and even the not so great) parts your home. This way, we can set a price that not only makes you happy but also, brings in your future buyer.
