As the real estate market has changed from the insanely hot market of a few years ago; I have seen a big change in the consumers and their habits.
When the market was hot, homes would sell in a matter of days with multiple offers. If a home owner priced their home too high, I would tell them they are not overpriced they are just ahead of their time. The market would catch up to them shortly. Today they are just overpriced.
A few years ago consumers would shop for the cheapest agent they could find. They figured any idiot could sell their home, so why pay more? Almost every listing appointment I went on the big negotiation would break out over my marketing fees.
Today things have changed. Sellers and buyers alike have read the negative press. They have friends and family who have failed or are having trouble selling their home or getting financing to buy a home. Those consumers are approaching the market completely different. They are no longer satisfied with just any agent. They want the best they can find.
Sellers want to know how we are going to market their home. They want a superior marketing plan and want to know what the long range solutions are if they home does not sell. What is the pricing strategy? I am finding most sellers are listened and taking my advice more than ever. They want me to come in and give them homework to prepare their home for sale. They want top of the line photos, a virtual tour and a website for their home. Regular open houses and all of the carrots we can throw in. They also realize that out marketing costs have gone up considerably, especially when homes are on the market longer.
Buyers want an agent who is a neighborhood expert, who can protect their interests. They are also looking for referrals to the right loan officers, who can get them financed without giving up their first born.
I hear many agents call this a bad market. It is not! It is a normal market, at least hear on Oahu. It is a bad market for agents who are not good at their craft. It is a bad market for part time agents who are not offering top services and do not market themselves. It is a hot market for top professionals. It is a good market for consumers who team up with top professionals and do their homework.
Associate Broker, ABR, AHWD, CRS, e-PRO, GRI "Not Just Another Pretty Face" Hawaii’s VA/Military/ 1st time buyer’s expert. My aggressive marketing programs bring top dollars for sellers.
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I agree that it is not a bad market. We have had higher sales in the past month than a year ago in our market. Though the median prices were down by about 30% from a year ago this past month the median price rose again.
You are soooooooo right! Thanks for sharing another great post.
Jackie - Overall sales volume is down here, prices have held and my business has grown.
Jennifer - Thank you
Randy, I totally agree. The consumers are more informed now and not likely to move as quickly.
Betty - That is what I am seeing.
Buyers and sellers have to choose the best available - there is just too much $$$$ at stake!
Well said sir, In our market we have buyers and sellers and a little trouble with the lenders but it seems to working itself out just fine. cw
Randy, I don't see the bad market either. I am not a great blogger but a super Realtor.
Randy:
A very cogent discussion of the issues facing agents in today's market. Sellers, and rightly so, are most concerened about marketing and what they get for the fees they must pay. Some, however, are still adjusting to the realities of the market in terms of pricing. And for some their areas are declining in value due to the short sales, foreclosures and REOs; appraisals are coming in below value with more regularity in certain areas. Our value is knowing how this impacts the marketing and the pricing.
Jeff
Randy,
An informed client (and informed with accurate information) makes for a better transaction all around....thanks for the positive note
Hey Randy
Got your resonse abour Les Paul.
I will send you something if i can rememeber it.
Tommy
No doubt we all have to work harder and show something to seperate ourselves from the pack.
I agree with you its not a "bad market" its just different than I was last year.
Hi, there! I agree -- good to hear from your perspective.
Li
Randy this blog is right on the money. Buyers should always use a professional who knows what they are doing, but that is even more important in the market conditions that we are in today.
The market is holding steady here in western KY. Thankfully there never was a bubble created here for it to burst! Granted we didn't have the huge increases over the past few years, but we have held our own and are still doing so!
Your timing couldn't be better. I just started with new coach today and we were discussing that very subject. I don't want to be mediocre. I want to stand out and offer the best service. Good talk.
Oh and thank you for the warm welcome. Robin Chlad
Gary W. - I am definitely seeing more clients deciding on that basis these days.
CW - I have not had the lender problems with my buyers I have heard from so many others. I recommend a few top agents in the area and they have done a great job with my clients. I do run into some scary ones on the other side of some of my transactions.
Frank R. - You must be from the glass is half full crowd. :)
Jeff D. - Very well said.
Dan B. - You are right, it makes for a much smoother transaction.
Tom B. - Thank you, I look forward to it.
John W. - Absolutely, we have to give them a reason to choose us..
Mindy and Jay - How can it be a bad market? Interest rates are low and there are some good buys out there. Sellers can continue to move their homes if they are marketed correctly.
Li - Thank you
George - That goes for not just the real estate agent, but the loan officer and everyone else involved in the transaction.
Jamie - We did not have the predicted bubble here either. I never believed we would have one.
Robin - Sounds like you have the formula for success.
Robin - I am glad you are here and contributing.
WooHooo! It is a good market here! I know one thing....the buyers are popping up and the sellers are being more reasonable and listening.
Randy, I am a hard worker. I do promote myself and my listings. Here in Ka'u on the South end of the Big Island... it's a bad market. We have way too many listings and the buyers just don't get down here from Kona. I thought that working for a Kona company would help me to get them down here ... but so far I am not having much luck. I have a few buyers that hopefully will pan out in the next few months ... but nobody looking for right this minute. Well, that's a bit wrong... I have 1 guy looking for the now and he just wont pull the trigger on anything. He is under the impression prices will drop 50% as soon as he buys. But, I work hard and I will land on my feet.
Sally - Clients have definitely adjusted to the market.
Patrick - I saw a real effective set of advertising from one of our Active Rainers. He took out ads that read 150 homes under X dollars available, please contact me for details. He said it was quite effective.