In our markets of Plymouth & Cape Cod and with our home sales, I began to see a market shift last fall. Namely, experiencing low inventory, prices climbing, multiple bids, bidding wars, buyers submitting offers immediately following a vist to a property and buyers anxious to put in offers fearing they would lose to other buyers. I wrote about this in my blog and began to speak of this to sellers, a pleasant surprise. It is now clear, certainly we are seeing a shift in the market favoring sellers. I am approaching this with both caution and excitement! As a Realtor, it's terrific to be in a postion to see this happening and have a hand in the change!
It is the understatement of the past several years to mention the profound impact a true housing market turnaround will have on the economy and our confidence. It can be the game changer we all have been hoping to see. No one can be certain this is sustainable notwithstanding the daily efforts of the media to convince us this is the direction. At least it's a positive story for a change. And econometric firms are betting their reputations on forecasts favoring price growth and relatively low interest rates. So what are we to make of this? And what are we doing to help.
Let's look at this through the following questions that are strategic to running our businesses. I will appreciate any and all comments and/or arguments. After all it is the dialogue that is important.
1. How will this shift affect buyer agents vs seller agents?
A: Buyer agents will need to alert clients upfront that time is of the essence. Decisions may need to be made quickly to avoid competition from other buyers. And buyer agents will need to do their homework just finding appropriate homes and with pricing to help clients not overpay if it can be avoided. Though the market is shifting, take the time to know what you're buying. Sellers agents need to advise clients on pricing for maximum activity and help with negotiations where multiple offers may be the case. Seller agents will also need to help clients move into the market and help them determine if they can sell and move on.
2. What marketing strategies will you need to change?
A: The challenge is to get more sellers into the market to provide needed inventory for buyers. Yes, sellers can hold onto prices a bit more than in the recent past and yes they will see more activity. But strategy should be to educate sellers and buyers and sell yourself as a resource to help them bridge the market shift and be successful. You need to set market expectations for clients and have clear plans in place for likely scenarios. Best to have these discussions upfront or in your blogs rather than during negotiations. Each situation is unique so get them to talk to you. Focus on local.
3. What are you already experiencing that is causing you grief in your current efforts?
A: Lack of inventory or inconsistent inventory across price points. Sellers may wait for more price gains to list their homes. Many buyers still on the sidelines and unsure of market. Lots of website activity but slow to translate these into feet on the ground.
4. What fears, if any, do you have about this change?
A: Not a fear just a concern overall of sustainability due to economic forces outside the control of the normal person that could affect confidence, mortgage lending/qualification and interest rates. Media is positive now but this can change.
5. What are the top three things a buyer's agent or seller's agent must do to be successful in the new market?
A: Be an informed resource in your local market, get clients talking about their situation, recommend a course of action that is ethical and honest. I would add a fourth in terms of getting the word out that you are the informed resource.
Feel free to give us a call if you are on the South Shore in Plymouth or Cape Cod and are looking to buy or sell a home.
We inspire success and help you enjoy the process.
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