2005 vs 2021 - When will things change in Real Estate?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

"What a Real Estate market", is all I can say. But, remember whose head you step on on the way up as you may need their hand on the way down. Here in the Manchester NH Real Estate Market, we have seen many years now of more Buyers than Sellers. Values that have sky rocketed. It is a reflection of 2005 all over again with a couple of differences.  

 

In 2005 values also sky rocketed. However there was an ample amount of homes to sell every buyer that wanted one. Mortgages were easier to get. Listings were plenty and sales were through the roof. Here in 2021, we have an unlimited amount of buyers, but much fewer homes to sell them. 

 

In 2005 agents worked together. Listing agents loved Buyer agents and Buyer agents loved Listing agents. I will get back to this relationship soon. However here in 2021, we are seeing the worst in things. Listings that are held from being seen until an open house 1-2 weeks away. A waiting period of 7 to 14 days to look at offers. Asking prices $20,000 to $50,000 lower than what the seller is willing to take to inspire bidding wars.

 

How many offers do you need anyway? 10, 20, 50 or 100? I just do not get why anyone needs to gather offers for 2 weeks before looking them. On my new listings i can have 20-30 showings in the first 2 days. I can have 5 great offers, 5 good offers and 5 not so good offers all in 2 days. No need to wait to weeks. No need to wait for 50-100 offers. I see some of the best offers are the buyers who rush to see the home and make their best offer quickly and up front the first day on the market.

 

The not so good parts of this market are agents that do not answer their phone. Do not return calls. Do not answer messages, emails or texts. It is not by accident and do not tell me 15 seconds to return a text will take too much time. Then we have new agents, untrained and thrown out to the public not ready for this complicated but great job. The thing is, buyers and other agents are paying attention. They remember how they are being treated. One day things will slow. One day there will be more homes for sale than buyers to buy them. One day order takers will go hungry as buyers are no longer lining up to give them offers. 

 

One day Buyer agents will be courted by listing agents to pay attention to their new listings. Home sellers will wish they sold in 2021. Home sellers will also wonder when their house will sell. Those that put up a sign, put the home in mls and wait for buyers to come to them will starve. Buyer agents will smile and reach out to those agents who treated them fairly and respect.  This is not like 2007, there will not be a great crash as the situation that caused that is no longer what we face today. Inflation and the government spending more money than they have will some day cause interest rates to rise sharply. 

 

 

BEFORE ANY HOME OWNER HIRES JUST ANY AGENT TO SELL THEIR HOME: They should meet with A GREAT LISTING AGENT. (Not just any Listing agent) One who is "well experienced" who will stand by the through each step of the Selling process. One who will look to see what that home is worth and price it properly. Over "real" advice. Provide a great marketing plan. Lastly, one that makes the seller comfortable through out the selling process. That agent can be ME.

 

 

 

 

THE MORAL OF THE STORY is that in the end, the most important thing in Real Estate for me is provide GREAT SERVICE. I want to stand out from the crowd. My philosophy is simple. To provide more personal and professional service to guide my clients through each step of the selling and buying process.

 

All agents are not created equal and every consumer should take the time to hire the BEST not just the biggest agent. Let me show you there is a difference. Please Support locally owned and operated business.

 

Locally owned and operated since 1985.

 

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 35 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

 

 

Comments (17)

Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

HI Scott you've got a lot of smiliarities going on in your market as we do here in Phoenix market. New (er) agents continue to ask for help in learning how to 'win' bids as they're loosing out time after time as are their buyers.  There will be a point (sounding sooner rather than later) that interest rates will start to go back up if the spending continues on the same path.   The good news is your right, this will not turn into the market of 2008 as all buyers are well qualified and in fact many offers are all cash or a lot of cash down.

Sep 29, 2021 03:37 PM
Scott Godzyk

Thank you Anna Banana Kruchten CRS, CRB, Phoenix Broker. Yes i would say more than half of my sales are all cash.  

Oct 01, 2021 05:36 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Scott- well done!  And as you said, there will be a day when the pendulum will swing and listing agents should remember that. 

Sep 29, 2021 05:41 PM
Scott Godzyk

I was talking to an owner of a large franchise yesterday Kathy Streib and they had a comment that stuck in my head. It was agents thinking they are bigger than they are giving the great listing agents a bad name. Satisfaction to me is not only my client telling me it was a great transaction buyt when the buyer agent tell sme teh same. I know they will be bring future buyers to my future listings

Oct 01, 2021 05:40 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Scott - in rising price markets there are usually those who want to be pigs.  Eventually, they get gored.

Sep 30, 2021 03:44 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Yep. Things will change. And the agents that have not been professional will... well, they will be remembered.

Sep 30, 2021 05:11 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Hello Scott, The pendulum will always swing in the other direction.

I am appalled at the behavior of some agents in my market as well.  Their behavior is unthinkable. I often wonder, who hires these clowns?  

Sep 30, 2021 08:32 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

FEATURED IN CRAP-TACULAR

 

Mr. Crappy Says

We Remember an Agent's Bull Crap!

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Sep 30, 2021 08:34 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Scott Godzyk I was around for the Sellers Market of 2005, and the increase of home prices back then.  However, those increase here in CT pale in comparison to the increases we are seeing this year.

Sep 30, 2021 11:52 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Oct 02, 2021 05:54 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Scott. Picking an experienced quality agent with an impressive track record is the only way to go. Enjoy your day.

Oct 03, 2021 05:27 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Scott - things are constantly changing.  Both in subtle and not-so-subtle ways.  Certain things are long remembered.  Make sure "those" are the right things.  

Oct 03, 2021 05:44 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Prospective home sellers and home buyers are in very good hands when they seek your professional real estate advice and assistance.

Oct 03, 2021 05:54 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Scott Godzyk -  Very interesting!  Our Sedona seller agents are doing like you do - 2 to 3 days for viewings and then taking the best offer.  I can't even imagine underpricing a home to try and create a bidding war or holding off for 1 to 2 weeks for an open house.  I question the ethics of agents who do this.

However,  there are agents who say they will let buyers see a property for the next 2 or 3 days and then get 3 or 4 offers and close everything down without sticking to the 3 days.  I would never do that.  I had a client make an offer of $50,000 over ask and lost out to someone who offered over $100K over.  

Oct 03, 2021 11:11 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Scott:

I am seeing some of the same issues here in my area. We know that the market will shift in some way at some point, we just don't know the timing. Seems this market has brought out some bad behavior in some people.

Jeff

Oct 03, 2021 04:32 PM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

This market is nothing like the market back in 2005 that lead to the lending crash  A lot of safeguards in place now and banks are more cautious about their loans as well.  The gents that take the time to talk to their clients and treat them like people will always succeed and the order takers will have a tough time

Oct 04, 2021 09:27 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yes, very interesting comparing 2005 or 2007 to our current marketplace.  I just off a weekly economic zoom, seeing the national trends vs. local trends in housing starts.  All great data.  Of course all real estate is local.  I appreciate your comment to Anna's message! 

Oct 04, 2021 02:47 PM
Bill Carroll
Corcoran Real Estate - Westhampton, NY
IN REAL ESTATE, REPRESENTATION IS EVERYTHING

Scott- All I can say is You nailed it!!

Oct 06, 2021 04:16 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Timely and appropriate post. It echos my thoughts on the market and what to expect when things change.

Oct 07, 2021 07:25 AM