realtor

What’s up with our market?

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There are home buyers out in Northern Virginia but they are savvy, price sensitive and condition critical.  As we have seen in the papers, read online, and heard on the news, the rest of the country is experiencing a double dip in home prices, and waves of foreclosures are going to hit the market spiraling prices even further.  All of this has made buyers in our area become very cautious and has lowered consumer confidence nationwide. 

Why do you ask are they this way?  Well, most of them are from someplace else and they have seen streets riddled with real estate signs, are from areas that have a 41 month supply of houses versus our 3.1 month supply of houses or have friends and relatives who have been unable to sell their house in other parts of the country.  This has an impact on their buying decision here and yes, they hear our area is different and understand the underlying reasons why our market is strong but they are still looking for “a deal”.  They scrutinize each property looking for excuses not to buy them versus finding reasons to buy them.  When there is a home that offers the right price (often below market)  that has been staged (painted in neutral or trendy colors, new carpeting and de-cluttered), in perfect condition (no broken window seals, leaky faucets, etc.) and in a great location (backing to trees, end of cul-de-sac, etc.) they swarm on this property like vultures.  Many times we will encounter multiple offers on these types of properties and see them escalate above list price.

If you are a seller and your home hasn’t sold, what should you do?  Lower the price – it is the least common denominator and makes up for many areas where the home may be lacking such as in condition or location.  Get the home staged, by a professional.  You could also offer a higher commission to the buyer’s agent as an inducement to sell your house.  Many sellers or listing agents are offering a lower commission as many buyer agents have accepted lower commission rates in the past few years  as a result of short sales and foreclosures (banks) only paying a lower fee so paying more can set you apart from the competition.  Be ready to negotiate to get your house sold.

If you are a buyer, what do you do?  You should be ready to be in competition if you are looking for the perfect house at the perfect price and be prepared to include an escalation clause with your contract.  As was mentioned early, these properties are typically seeing multiple offers that go above list price.  Buy a new home – pick your own colors, location, and avoid the competition.  Many builders have adjusted to the market and are priced to sell.  Make an offer on an almost perfect house and see what happens.  Often times, as homes stay on the market and sellers have many visitors with no contracts, they tend to be more reasonable with what the market is telling them in regards to pricing.  The idea for buyers is to just buy.  The housing affordability index hasn’t been this high since 1979!  Interest rates are at their lowest level this year and prices are reasonable plus, we have jobs and stability in our market place.

If you need to sell, this is a great time to do so.  If you are a buyer, you shouldn’t delay – prices and rates are not going to get lower in our area making this an opportunity of a lifetime.  Contact your RE/MAX Gateway professional today and get packing!

Don’t just survive…thrive!

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Here are some strategies to help you not only survive but thrive in today’s market as shared by RISMedia panel members.

Provide a newsletter that has helpful tips whether you do it or you pay for a service, get a monthly, informative newsletter or market update to send to your sphere of influence.  Don’t let someone else be the buzz in your client’s ear.

Explain the numbers, your knowledge of the market and get the business – you have to educate yourself on market trends so you know what to say so you can differentiate yourself from other Realtors.

How do you answer the question, “how is the market?” – What’s your answer?  Think about this, become an access point for relevant up-to-date information to everyone you encounter.  Don’t just respond – it’s unbelievable or I’ve never been busier or it’s great and I’m never too busy for your referrals.  Provide them with information.

For sellers

Ask questions and listen when you are on listing presentations:

  1. What is it you want to do?
  2. Why is this move happening?
  3. How soon do you want to act?
  4. Who is responsible for making decisions?
  5. What has to happen to make this happen?
  6. What is plan B if the house doesn’t sell?
  7. What is the worst case scenario?
  8. What is the best case scenario?
  9. Tell them, we want to get you the highest, most realistic price.

The market is not reacting to your price so we are now getting closer to your plan b – is this ok with you?

Take professional pictures and use full screen photos on the internet.  Buyers go to the internet first so you have to make the best first impression on line.

Position yourself differently in the market place.  When listing the house you will be merchandising, staging, and pricing the property to sell.

For buyers

When working with buyers, use the housing affordability index to motivate buyers to buy.  Housing affordability is at its highest point since 1979.  If you are working with Millennia’s state, there has never been a better time to buy a home since your parents bought their first home.

Only work with committed people

Don’t do it for the money…Educate the buyer or seller and focus on their goals and the money will follow…

Commit to make a difference in someone else’s life.

Excellent tips to build urgency in buyers:

Remember, it is always about the consumer:

  • Convert wants to needs
  • Lifestyle marketing – appeal to the lifestyle of the buyer you are looking to sell to.
  • Ask “right” questions to learn more about them, their needs and to better serve them.  Schedule a buyer interview to set yourself apart.
  • Younger Consumers want Community – build urgency through the ability to be in their community – bike to work, coffee shops, environmentally friendly buildings, free Wi-Fi, etc.

Know why your people buy.  In a recent survey of home buyers and their Realtors – look how they answered these question of why they bought.  85% of Buyers bought for appreciation.  89% of Agents who sold them their houses said appreciation wasn’t a reason why they bought.  Get to know your buyers and their reasons for buying and the referrals will follow.  Don’t and they won’t.

For you to think about

You set the temperature for your future – don’t be a thermometer and respond to the temperature.

If you are not already on Linkedin – here are some reasons why should be:

Seven Reasons for utilizing Linkedin:

  1. Highest household income of any social site
  2. 45% are household decision makers
  3. Can import/export contacts
  4. Professionals involved in this site, not kids, college students, etc.
  5. Social way of contacting professionals
  6. Target “groups”
  7. It can be automated

Continually ask yourself and assess yourself by asking:

On a scale of 1 – 5, 1 being the lowest and 5 being the highest, how would you rate yourself on the…

  • Use of technology
  • Prospecting
  • Sales skills
  • Negotiations
  • Average sales price

Get with a coach or mentor and work on the areas you need the most improvement.

Important things to keep in mind to grow your business

  • Build Your Skills
  • Shift your mindset
  • Agents cause their own market
  • Show up and use what we provide
  • Hold up a mirror and ask – are you doing all you can?
  • Become intentional about leads

Now that you are armed with a few additional pieces of information, take the time to implement one or two at a time to make yourself a better listing agent, buyer agent or business person.  Get it?  Got it?  Good!

Now, go sell something!

 

 

 

 

 

 

 

Selling your home? Avoid these mistakes!

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Top 12 Seller Mistakes and how to avoid them if you are looking to sell your house:

  1. Selling on your own.  There have been so many changes in financing, contracts, and regulations that it is difficult to keep up with if you are not in the business learning and keeping up with these changes you can get burned at the last minute.  How will you navigate the process when things go wrong with no experience in how to handle the types of problems?  The business is changing exponentially virtually daily.
  2. Not hiring a true professional.  A true professional in the business is someone who is actively selling houses and participating in continuous training – not just someone with a license.  Nearly 40% of licensed Realtors did not sell a house in the last 12 months.  Be sure your agent is a true professional who is keeping up with the changes in the market, trends, contract changes and all other aspects of the business.
  3. Not listening to the advice of your professional.  Some owners will hire an active agent in the business, listen to their advice but then take over “the driving” of the listing by dictating the pricing, condition, showing details, negotiations, etc.
  4. Not hiring a stager.  Some sellers fancy themselves as decorators, interior designers, etc. saying they know how to put their property in the right condition to sell – well, it doesn’t help in most cases.  If your agent isn’t an Accredited Staging Professional – hire one and do all that they tell you to do to sell your house.
  5. Not doing what the stager or professional suggests.  Yes, some people will hire professionals and not take their advice or delay in making the changes suggested.
  6. Not following the advice of feedback presented by agents who show the property quickly or in a timely manner.  Agents who are actively previewing or showing properties have the best perspective on the market.  Their buyer’s feedback is the heart of the market and its conditions so their input should be carefully considered and followed – with the advice of your agent.
  7. Not maintaining the “right” condition of the property during the sale process.  Many times, especially as time goes on in the marketing process, sellers won’t make beds, load the dishwasher, keep the blinds open, etc. and that is when the property will be shown.  It is a difficult process but it must be followed because you don’t know when the next showing will occur.
  8. Pricing the house a little high for negotiations.  Pricing is extremely critical.  What happened last month, last year or when you bought your house doesn’t matter in today’s market.  Buyers are looking for houses that are priced right – which in many cases, is a little below what the last sale was in the neighborhood.  Pricing a little low may also generate multiple offers and allow you to attain a higher sales price.
  9. Not utilizing a lockbox to grant access – appointment only will hurt the number of showings and thereby extend the length of time the property is on the market which will lead to frustration on everyone’s part.
  10. Not leaving during the showing process – it is uncomfortable to the buyers and they won’t provide the best of feedback.
  11. Not negotiating contracts that come in – no matter how low.  Sometimes buyers or their agents will see how low they can go before they will agree at a reasonable price and terms.
  12. Not making the contract work and get to closing.  Often times both buyers and sellers will need to negotiate all the way to the closing – home inspection items, HOA violations, appraisal issues, title issues, and so many other things can become stumbling blocks.  Remember to keep your eye on the end goal of selling the house.

By avoiding these costly mistakes, you can get your house sold in virtually any market in a reasonable time.