MARKET STRATEGY FOR THE TRIANGLE

If I said it’s a crazy market would you think I’m repeating myself?  Well, it’s a crazy market.  There’s a housing shortage folks, which makes it the strongest seller market I have experienced.  For the first time in my experience, all of my buyer clients (and one seller) are BUILDING their next home.  That’s because…duh…there’s as housing shortage, and people can’t find a home they want to buy!  If they find one, there are five offers on the table already! ALERT!  TIME TO LIST IF YOU ARE THINKING OF SELLING!!  I’ve said that so much I’m out of breath.  Again, you can make the MOST on the sale of your home now, while there are people clamoring for a great home to buy and who don’t want to wait six months to build!

Remember when I said I couldn’t wait until the pendulum swung back to center?  When I was tired of my sellers getting the pants beaten off of them?  Well, I’m glad alright.  Sellers are now in control.  Like I said, the universe WILL balance.  Never fails.

But like always, there’s a “but”.

I find that many real estate agents negate the power of supply-and-demand when pricing homes to list.  For example…one-level living is the hottest thing going right now, except for senior living communities…which are also one-level living.  So if you have a ranch style home, you are in the proverbial cat-bird seat.  Now that only applies if you home is marketable.  I’ll explain later.

Back to pricing:  Yes, look at the price range of homes in your zip code and focus on your comps.  Then search for ranch style homes in the MLS AREA, and see how many ranches are out there.  If you find ONE or NONE?  Instant benefit to you, Seller.  You may now price at the high end of the range and expect to get it.  I recently had an agent lambast me in her feedback telling me that my listing was priced TWENTY THOUSAND too high. Well, we sold that house for the price I set.  Booyah!  Pricing is my strong suit folks.  I get it done.  If she had listed the house, well, not a happy face on that one.  And it would have hurt the market for the community too.

When you meet with me, I will ask you this, “What is your selling goal?”  Now that might sound stupid, but bear with me.  If your goal is to get rid of the house FAST, that initiates a different STRATEGY for pricing your home.  In other words, we might aim a bit lower in price, or come up with some enticing concessions.  But if your goal is to get every last penny the market will allow for your property, well that’s another STRATEGY, and its my favorite.  That means we price you at the high end of your range, but we expect to MAYBE take a bit longer to sell.  I don’t know about you, but I’d wait two or three more weeks to net 5 grand.  If you are not in a rush, relax and focus on your bottom line getting BETTER.

If your agent doesn’t talk strategy with you…ask why! There is more to pricing your home than pulling up some comps and taking an average!  Supply and demand MUST be considered!  If you have the only ranch style home with an acre or more lot in the whole area?  You just hit the jackpot on pricing; I don’t care what the other homes went for.

Understand that pricing your home is a many-faceted operation that takes time, it takes knowledge of the greater market, your LOCAL market…which sometimes means your exact community…and it takes an understanding of what you, the seller, want to achieve.

My goal in any listing situation is to get you, the seller, every penny I can get for you on pricing.  But if you just need to move on, we can change that strategy.  It’s a team effort and your agent MUST know your needs, not just how to average the sale price of three properties sold in the last three months.

Now, back to having your home “marketable”…People sometimes hate to hear this, but here is the cold, hard truth.  If you want TOP DOLLAR for your home, it MUST be in top dollar CONDITION.  That means you have to roll up your sleeves and do some cleaning and re-arrange or maybe even remove some pieces of furniture.  Remember we look at houses ALL THE TIME.  We know what sells and what doesn’t.  You HAVE TO DECLUTTER.

Buyers are buying space, not your decor.  Don’t fault the professional real estate agent when she tells you what you have to do to get top dollar.  Is your decor worth ten thousand dollars to your bottom line?  I’ve seen people say yes to that time after time!  Amazing!   I don’t have that kind of money to spare, how about you?  If you do, don’t worry about making your home “marketable”.

So…remember that if you want top dollar, the house must be WORTHY of it. If you are not willing to put in the sweat equity to get top dollar, do NOT blame your real estate agent! Instead, look in the mirror.  Remember that selling your home is a team effort and you…let me repeat…YOU are one half of the team.  So get involved, know your strategy, and get that home spiffed up to garner the best price!  If I’m your agent, I’m going to work very closely with you to get you that price.

Let me just add one more thing: Don’t start getting antsy.  If you have chosen a savvy real estate agent who has clearly understood your needs and laid out a great pricing strategy, listen to her and settle down.  Selling a home is nerve wracking I know, but you will shorten your life by pacing around being nervous.  Relax and let the strategy work.  You can count your money and your blessings later, trust me. And if you can’t trust your agent, you’ve got the wrong agent.  Just sayin’.

The Latest Crazy Market Paradigm

Hi everyone!  Hope this post finds you well and I hope you’re planning on either buying or selling your home AND calling me first.  It’s a huge market out there and with an interest rate hike looming, it’s likely to get bigger, faster, busier. Crazier is probably a better word.

We’ve talked about how you can’t even get the offer on the table for consideration before the home goes under contract and now homes are selling BEFORE they hit the market.  Multiple offers have become the norm and it is a STRONG seller market.  Home prices are rising and builders are busy again.  Good to see.  But there’s something new and again, we need to be careful about this.

Sellers are demanding shorter due diligence periods in a market where getting immediate inspection services…for home, septic, well, HVAC, pests, roof…is impossible.  In some cases there’s a two week lead time to get someone out to inspect, and some sellers are asking for a three week due diligence period.  Impossible.  What this does is put undue pressure on buyers who are already incredibly busy getting loan approval and meeting all of their obligations as buyers.  Ultimately, it’s not good for the seller either; they end up with days to get repairs done, rather than weeks, so the stress boomerangs right back on them.

It’s hard to get through the due diligence period, followed by an even more difficult repair negotiation.  Let’s not be stupid about this.  Nobody’s losing anything if the home is under contract with a financially strong buyer and the home is well maintained.  Relax and give the buyers a chance to do their due diligence!  Agents, remember when you agree to this short due diligence period, you could very well be asking for an extension and your buyer might have to fork over more due diligence money.  The seller has a right to ask for it.

Shrinking Inventory in the Real Estate World

The Perfect Storm is looming.  Interest rates are creeping up; housing inventory is shrinking; people are rushing to buy, people who were on the fence for some time.  It’s turning into a seller market, for these reasons and one other one that’s HUGE.  Multiple offers are commonplace.  Great for sellers.  Not good for buyers who are used to insisting on paint color being perfect before they even buy, carpet being new in a ten year old house, the right smell, the right temperature.  Sellers, celebrate.  Buyers, take a deep breath.  The world we knew a year ago has flipped.

When sellers have multiple offers on a home you really love, suddenly their repair budget shrinks or yes, even disappears altogether.  Some offers are high with ZERO concessions.  Suddenly that decor isn’t so bad after all, suddenly sellers are smack dab in the middle of the driver’s seat.  And folks, as inventory continues to go away, it’s going to become even more dramatic.

For so long sellers were put through the wringer trying to sell, and now it’s about to swing strongly in the other direction, moving so quickly through the middle ground we’re likely to miss it.  If you’re a seller, it’s a great time to have your home listed.  Buyers, better get busy, because not only might you have to compete with several others to get the home you love, you’re going to pay a lot more each month as interest rates creep up.

I said, some time ago, that one truism is that the universe WILL balance.  It happens in all areas of life, and it’s happening in real estate now. Don’t you feel it?  Exciting times.  Don’t miss out on the still good prices and interest rates, people.  We’re about to see house prices, first on new construction, take a big leap.

Call me and let’s get busy!