Every morning while sipping my freshly brewed cup of coffee I sit down and log onto our MLS (multiple listing service) to check my "hotsheets". My hotsheets cover two counties - Montgomery and Howard - since this is where most of my clients reside or are looking to buy. I keep an eye out for my sellers and buyers, but want and need to know what is happening in my market, too.
There are general trends, such as:
♦ the lowest listing activity is at the beginning of the week
♦ the highest number of pendings is also toward the beginning of each week
♦ we see an increase of "temp off the market" when listings have been flooded with offers (it gives us listing agents and sellers some time to sort through all, verify info and determine which one is highest and best)
But we also see a few anomalies in the hottest sellers' market! Price drops. Yes! They do appear, albeit in small numbers, and they just might be the opportunity (my) buyers have been searching for.
I always check the few listings under "price adjustments" before I scroll through new "coming soon" and "active". Another interesting category with potential is "back active".
In the hottest housing market, when competition is fierce and prices are escalating fast, those two little categories could hold the key(s) for my clients.
Why would any seller have to drop their price right now? There must be something very wrong with that house! I'm glad you asked. The answer is, yes, but not necessarily.
♦ condition: buyers want updated (to 2021) and well maintained homes. If a home is not all that but priced as if, then it could still sit for a bit with comparably few showings and no escalating offers.
♦ presentation: some agents have a 'talent' to only highlight the worst features of a home, or show it off from the weirdest angles, or not show it off at all! Cue, the "no photo" image, or the inside of a toilet bowl. Contrary to what it may seem like, homes do not sell themselves! It still takes preparation, decluttering, cleaning and staging, and a dedicated listing agent who will advise you properly and manage all the million details to get the most eyes on your listing and the best possible offer.
♦ supply: lots of happy home owners have regained lost equity - and then some - and are finally able to trade up. You may suddenly see a higher number of new listings in one particular community once it passes a certain price threshold. Or it may just be the time of the year, or no particular reason at all. In any case, there's a difference if buyers have one house to look at or five to choose from.
What's that? A price drop in the hottest sellers' market?
In times of fierce competition and escalating home prices, price adjustment and back to active may seem like an anomaly. But they still happen and these two little categories could hold the key. Mind you, they don't necessarily mean "no competition", but chances are it's less than that hot new listing that already has back-to-back showings scheduled for the next 4 days and an offer deadline on day 5.
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