As the Market Slows Down, Hiring the Right Adviser Becomes Paramount
When the market is hot, everything is an urgent frenzy. Buyers and their agents need to be the first to see new listings and then buck up to pay well over asking price. Sellers are relaxed and comfortable hiring their close friend or family member who just got their license, because after all, anyone can sell their home in a hot market. New agents enter the industry monthly, lured by the glitter of making easy money selling homes, — something anyone can do . . . and then the market shifts.
Today, we are seeing a decline in sales activity. Inventory is increasing, as is the average marketing time and the average listing-to-sales price ratio. Both buyers and sellers are recognizing that hiring a full-time experienced professional is prudent to making the best strategic decisions about what and when to buy or how to sell. In this market, expert advice on which home preparation investments to make as well as choosing the most effective pricing strategy based on carefully evaluating the most recent data in the market place is critical to capturing the most value from your home.
For buyers, watching the web and looking only at homes that appeal to you is not enough to make a half a million-dollar investment. Selecting an agent who is actively seeing inventory every week puts you miles ahead. A great agent can speak first-hand about being inside of each pending and sold home. They will follow the days on market, list-to-sales price ratios, and know the ins-and-outs of each transaction. This is remarkably powerful when you as a buyer ask the question, what should I offer and why? It is even more impactful when they represent your offer to the seller and the seller’s agent, as they “KNOW” and can speak directly to why your offer is exceptional and should be considered. A great buyer’s agent is often able to share data with the seller and his/her agent that even they did not know and negotiate a favorable agreement.
For sellers, home preparation and pricing are everything. All the marketing in the world won’t overcome a lack of preparation or inaccurate pricing. Buyers are just too savvy, and all of the market data is easily accessible for analysis. At ELEETE, our exclusive pricing model ensures our sellers can look at their home pragmatically in relation to the market and our brokers “KNOW” what key updates a seller should address to widen their buyer audience. From carpeting, painting, landscaping to staging, some homes need it and others don’t. The key to success is knowing where to put the money, when to invest it, what materials and colors to select, and whether you are paying a fair price. An experienced broker will collect the data for their seller, empowering each client to make informed decisions. From there, having a full-service team with a comprehensive marketing plan and long-term strategy is crucial in what we currently see as a softening real estate market.
If you are looking to buy or sell this year, starting the process now will ensure that you are educated, have your home ready, and confident when the time comes to execute your next real estate transaction.
