Hey guys, now that the market's becoming more competitive, one idea to help your sellers be more competitive is to use the "Buyer Eye Strategy."
What's the "Buyer Eye Strategy?"
When you're sitting with the seller and you've just listed to the property, you might say something like this:
"Hey, Mr. And Mrs. Seller, now that we got the property listed, here's what I'm gonna do when I get back to my office. I'm going to treat you guys as if you were a buyer for a property that's very similar to yours. So here's why I'm doing that:
"I'm gonna set you up an MLS on a search pattern that's gonna include your house, but also any other houses that are listed that are similar. This way, you're gonna see everything in real time, every single listing that's happening. Every price reduction, every pending, every closing that's occurring in your price category. And this will really tune you into the market.
"And if you decide, Hey, look at this as a new...
As we begin to price property, it's important to understand the difference between comp-based pricing and competitive-based pricing.
Comp-based pricing is what REALTORS typically do when they do a CMA, they do a comp based pricing analysis. What they do is they look at properties that have sold three to six months ago, very similar to what an appraiser does. And normally in a typical market, that's very effective. But we're not in a typical market.
When you're doing that today, you could have an inherent flaw in your data. And here's what it is:
Back in April and May, all indications point to the fact that we probably hit our apex point of the market. Meaning that home sales were indicating at 23-26% appreciation rate compared to the year before. So that was the peak acceleration of our markets.
Since then, we've been moderating. And what that means is that people aren't getting 23-26% compared to a year ago. Now it's down to about...
We are in what we might describe as a normalizing market. What does that mean?
We've been in an abnormal market for several years. Our market's been almost a vertical. We've had double digit appreciation for several years. And this has been a run that we've never seen before.
We're about 12 years into a 7-year cycle. So there's an expectation that we're starting to see the markets shift.
A lot of us are seeing a slowdown of showings and energy. And there's some data that backs this up. Here's some of that data:
New listings in the largest 50 metro markets across the country rose 5.1% last month.
And 17.3% of all listings in the country had a price reduction in the last 30 days.
That's in line with pre-pandemic levels, what you would expect in coming into fall. So that's like 2016-2019 levels. Last year, we didn't see that because the market was straight up. It was on a tear.
But right now sellers are starting to say, "Hey, wait a second....
Hey guys, the market is shifting. If you can feel it in your market, you're not alone. One study that's backing this up is a study that's just been done by realtor.com. It shows that of the top 300 Metro markets in the country, 45 are seeing significant price adjustments happening.
I'll give you a couple examples:
Des Moine, Iowa — 32% of the listings have had a price adjustment
Midland, Texas — 28% of listings have had a price adjustment
Toledo, Ohio — 26% of listings have had a price adjustment
Metairie, Louisiana — 24% of listings have had a price adjustment
Where I live, Portland, Oregon — 20% of listings have had a price adjustment.
So not every market's having this yet. But we're certainly seeing sellers starting to be wise to the fact that buyers aren't just going to pay infinity anymore. There is buyer resistance to pricing. We've seen the largest run-up in pricing. Prices have hit an all-time...
Are you having pricing conversations with your sellers?
The number one reason why a home will sell or won't is the price. As the market transitions it's important that sellers understand that the price is their ultimate marketing tool.
What we will cover during this webinar:
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Jim Remley is a nationally recognized expert in the field of...
In our changing marketing landscape we must adapt our strategy, our sales language, and our approach to advising and consulting with buyer and sellers to ensure they make informed decisions.
In a traditional market with the normal seasonality of a stronger selling season in the spring and summer and a slower selling season in the fall in winter - many sellers will consider taking their house off the market during the winter, and many buyers may wait for more inventory to arrive in the typical spring and summer surge.
We are not in a traditional market. The market today is undergoing a transition, a normalization which in many areas means more inventory is quickly flooding back into your local MLS.
Watch and learn how to coach your clients (buyers and sellers) on why buying a home now is a great idea and why keeping their home on the market is a smart strategic decision.
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To help sellers position their listing to receive more showings and more offers we need to provide our clients with the consultation they need to make good decisions. Often this comes down to learning how to explain concepts that can helps sellers help themselves. Watch this quick video to learn how to use Anchor Price Point Scripts, how to get more feedback from showing agents and open house attendees, and how to normalize price reductions.
Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate industry at the age of 19 he began an unlikely rise from college drop out to real estate Rock Star by becoming ranked in the top 1% of REALTORS® nationwide. Implementing game-changing strategies and deploying the latest technology advances Jim shattered sales records by listing over 150 properties in one twelve month period. At 24 he opened his first Real Estate Company and grew the company to 17 offices...
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