This train of thought started as I was talking with a friend in the real estate business and she said she's telling her clients that many of the houses currently on the market will not sell, period. I was taken aback by this. Not because she said something inaccurate. In fact, she's certainly correct. I just hadn't thought to put it as starkly as she did.
Then I got some data from my broker showing that only one in five homes is selling, period. Not that the other four take longer to sell. Not that they go on to sell with another agent. For right now, at least, they're just not selling! So 20% of current sellers will sell. 80% of sellers will not!
We're in a market where it will not be uncommon to see listings that have been for sale for a couple of years. I've already seen a few. There will be more coming.
So, given this, what changes about how I do business? What changes about the behavior of buyers and sellers?
First of all, if you're a seller, don't throw yourself off the roof yet! In any kind of market, some houses will sell. The trick is to make sure it's yours. That means aggressive pricing and your home is in tip top shape. Don't be afraid to consult a staging professional. (It's a service I frequently offer to my clients.) If you're not willing to inconvenience your family in order to make your home look really great, reconsider how badly you want to sell!
If you think that sounds harsh, I'll tell you that I already know I'm the kind of person who should only sell my own home in a really hot seller's market! I know I don't want to be that inconvenienced for that long! You need to know your own motivation and tolerance for pain!
For myself, it means once again reexamining how I explain current market realities to my clients. It means always making sure I've got the latest market data so that the information I share is not solely based on my opinion. And it means being able to deliver hard news without seeming alarmist! "Yes, it's a tough market! Yes, we can still sell your home if you really, truly want to!"
For buyers, all I can say is, what fun?! I don't know how long this will last, but life is good in your shoes right now!
My friend is right. A lot of homes currently for sale will not sell and eventually will be taken off the market. Clearly in those instances the owners really didn't NEED to sell right now. We're all relearning the difference between wanting to sell your home and needing to sell your home!
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