In the past year, the real estate market has become familiar with chaotic qualities like low inventory, multiple offers, properties being snatched off the market, limited showings, and homes selling for higher than being listed. But this is changing, and here are a couple of ways to prepare for a market shift as the market starts to cool down.
- Keep in Touch
Now everyone who wanted to buy in the past year or so can now that inventory is increasing and costs are lowering. As the market cools down, remember these individuals and keep in touch! Now might be a better time for them to buy. Start by sending them relevant information about changes happening in your real estate market. Are properties on the market longer? Are there price reductions? Is there new construction where it wasn’t before? Providing this information to potential buyers will help them make an informed decision.
This doesn’t apply just to potential buyers! Remember your potential sellers too. Many were intimidated by how quick and competitive the market was, so they didn’t sell. Provide similar information to prospective sellers and follow up with them about their real estate goals.
- Buyers Have Control Again
One effect of a market cool down is the power shifting back into the buyer’s hands and away from a seller’s market. In this new market, buyers will have more time to make decisions on offers and homes. This will be especially true of buyers reentering the market.
Variations of the buyer in power could be them not wanting to put in an offer on every home they see, becoming more particular, and passing on homes. As an agent, this might look like showing more homes over a longer time but writing fewer offers.
- More In-Person Showings
Out-of-area buyers are more likely to travel to look at properties now than ever before. Even if they don’t find a property to make an offer on, they’re able to see the neighborhood and area. This will be a massive shift as virtual, and 3D tours became the second-best option.
- Not-Serious Buyers Will Return
Buyers who say they’re interested but really aren’t interested will make a comeback. The key is to identify these individuals early on, so you don’t waste your precious time. One way to tell if they’re a viable buyer is to ask them qualifying questions. Buyers and sellers will only volunteer information they feel is necessary. This is why so many say one thing and end up doing something else. Another characteristic of this particular buyer is when they buy something they claim was on a whim.
A way to counteract these not-serious buyers is setting limits on how long you will work with them. The more time you spend with them, the more your gut will tell if they’re serious or not. If any buyers cannot answer your questions clearly or aren’t excited about homes that match what they’re looking for, it’s time to move on.
Pricing will be a huge shift from sellers holding the control to buyers having the power when it comes to pricing. Especially with new agents, it’s important to get an accurate understanding on how to price properties to sell. Be mindful of current market conditions when you list the property. You can study comparable sales to get an accurate estimate of what homes are selling for in the area.
Another option to get an accurate list price is to contact agents with comparable listings. Reach out and find out what the new normal is. Ask how many showing they had and how many offers they received. Once you gather all the information, share it with your sellers to set reasonable expectations.
If you need help adjusting to this cool, new real estate market shift, we can help! Like we always say, “Focus on your strengths. Outsource everything else.” Contact us here and fill out the form or give us a call at (512) 400-2345 ext 1.