Listen to Episode 16: Prepping Seller’s Expectations In This Market
On this episode of Agents Unfiltered, we’re talking about prepping seller’s expectations (vs. reality) in this current market. Be sure to check this out!
It’s still a sellers market, but it doesn’t feel like it because everyone is shooting for the stars still. It is definitely sobering conversation to hear what it WAS selling for. That’s what makes it hard with comps because if you go back you have to drop it 10%.
Even a month ago if you were looking currently on the market or currently pending it still wasn’t landing in the right spot.
Finding good comps
This is SO HARD right now! We can’t go back more than 2 months right now because it has changed so much. You have to start at a good price otherwise you have to keep price dropping. You have to price well, but then sellers have to be convinced.
“You could price here, but let’s have a plan if we need to lower it”
We are going to start seeing agents taking listings and pricing them way high just because they want to make the seller happy and they want to get the listing.
I had a bad dream I gave a price to my brother for his house and all of a sudden he said I already sold my house because a guy said I could get double what you said so I did. I think it is because I had a listing that I gave a very fair price to and it sat for a very long time (in the Spring market), but went for more than I thought it was going to and the agent only took 1.5% and took photos on an iPhone.
It’s always hard when you’re giving the best answer you can, but you wonder what if it is the one time I am wrong. At the end of the day all we can do is educate people. If people decide to take offense to it, that is on them. We are just helping them make an informed decision.
Are the interest rates going to keep going up?
The market doesn’t stop you just have different types of buyers. We saw interest rates over 7% so sellers need to be aware of that? We just need to prepare the sellers what does that look like with buying power, with a loan, etc. We can do the best we can and it still doesn’t go as planned. I called so many agents with pending’s for one of my listings and then the market took a turn and we had to do a price drop and the seller was super disappointed.
I made a spreadsheet that broke down “if we come down to the price I am recommending now at this interest rate (because they’re trying to buy also) this is what you net, this is what your interest rate is, this is what you’re paying. If you wait a year when interest rates are potentially going to be as high as XYZ, then your home (potentially) will be coming down even further and you will have a higher interest rate.” Yes you can wait until the spring market but there is dangers to that too. I think if people see the dollar amounts that is very helpful. Here’s a $70,000 difference if projections are correct (instead of 1/2 a percent or 5% down) it makes it easier to make a decision.
Helping sellers get a grasp of the market – it’s not normal to have this much equity in your home this fast. In the last 2 years it has been over 20% in the increase in inflation and cost of homes (instead of 3%) and a lot of people missed that magic time, but that’s not normal.
In the past people would sell after 5-10 years (7 years) after owning their home. Now you can own your home for less than a year and make enough to pay your fees and have extra money and people have gotten greedy. For the most part people haven’t even done anything to their homes. A listing price doesn’t mean that is someone else values your home at.
At the end of the day all we can do is educate
This is what the market is telling us. If you want to go higher, let’s shoot your shot. The one person coming from out of town who loves the house and has cash, great, but if that doesn’t happen, here is what you should expect.
We don’t want to overpromise and underdeliver.
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ABOUT US -🎙 Agents Unfiltered is a podcast with the goal of connecting and building community between realtors nationwide. Get ready for some relatable and relevant information about “The Do’s, the Don’ts & the What The Fuck’s of Real Estate.”