If you have been watching real estate market lately, you will have noticed that, on an international scale, we are experiencing a strong seller’s market. Sellers need agents now more than ever! Let’s look at what your clients can expect and how you can help them if they are entering this hot seller’s market.
A seller’s market happens when there’s a shortage in housing or there are more potential buyers than listed homes. The housing market is influenced by several factors including interest rates, economic conditions and consumer confidence. The pandemic has created a ‘perfect storm’ of these factors creating a strong seller’s market.
Selling in a seller’s market
Our agents have had their clients ask about how to move forward in this hectic market. Here are some of the ways that an agent can help a selling client, in a seller’s market.
1. Provide an objective view
Selling a home is an emotional process. It can be quite upsetting for the owners to hear comments made by buyers (and their agents) regarding the home. With an objective view, agents can act as the liaison during the emotional highs and lows of the process.
2. Access to professional networks
Good agents have distribution lists and affiliations with real estate portals that they use to publicize their listings. They have knowledge about the market, they promote the home on their social media platforms and their personal website. Professional networks are effective to capture new selling clients – an important factor in today’s market!
3. Attract qualified buyers
Agents work to determine whether someone who wants to view the home is a qualified buyer, a dreamer, or a curious neighbor. Real estate agents are trained to ask qualifying questions and to represent the client’s best interests.
4. Price Negotiations
Sellers are often facing bidding wars and multiple offers. An agent can leverage these and manage timely responses to them, as it can get quite hectic. Agents know what is driving current demand which is an advantage that helps them to identify factors that are worth negotiating.
5. You May Ignore Your Home’s Flaws
Agents are experts in what makes a home sell. Take a walk through the home and recommend changes that need to be made to attract buyers and to get the best offer. Sometimes the things that determine how the home sells will vary by neighborhood, by geographical area, and even by culture and country.
Agents offer broader exposure, have experience in negotiating and bring expertise to a complex transaction: all pre-requisites for a successful sale in a seller’s market.
Buying in a seller’s market
When your client is looking to buy a home in a seller’s market, they will need a plan in place. Buyers in a seller’s market can get what they want, but they need to be prepared. Here are some of the ways that an agent can help a buying client, in a seller’s market.
1. Have finances in order
The client needs a qualified buyer if they are buying in a seller’s market. This means that their down payment is ready, their credit issues are resolved, they agree to delay any major purchase until after their home purchase has been finalized and they have with a clear understanding of how much they can truly afford. Having a pre-approval from a bank is vital so that they can move quickly when they find a home that they like. This preparation takes place before they begin the search process.
Advise your clients that the deposit can be quite an important aspect to the seller. For example, if the seller is looking at two similar competing offers, they will almost always favor the offer that has the higher deposit as it shows confidence that those buyers intend to close on the deal.
2. Be vigilant
Your clients have decided on their home criteria and have identified their priorities. Knowing their absolute priorities will help them make purchase decisions, especially once they enter the search process. Be alert to local market trends, price changes and opportunities that are available on the market. In a seller’s market the communication with your buying clients can be ‘fast and furious’ when new listings, viewing schedules and deadlines need to be considered. With your guidance, you all can remain flexible, reasonable and pleasant despite being in a potentially high-stress situation.
3. Make your best offer
In a seller’s market, buyers need to make their best offer first as there is rarely a chance for a buyer to negotiate. Sometimes this means your clients should set their search parameters below their maximum budget to leave room for an over-listing-price bidding war. Help them to make their offer attractive and uncomplicated by eliminating conditions where possible or by shortening the closing date. Write an offer that is attractive to the seller. A seller may even accept a lower offer from a buyer who is easy to work with rather than a higher offer from an unpleasant buyer.
4. Make your move quickly
Your clients have found their new home and they are ready to make an offer. There is no time for delay in a seller’s market! When competing against other buyers in a fast-paced seller’s market they need to be a bit forceful. Everyone involved will be anxious to hear if they have successfully landed the deal and hopes will be high. However, it is not uncommon for buyers to get some disappointing news a few times, when they learn that they were not the chosen buyer.
5. Try and try again
In a seller’s market, quite often your buying clients will experience frustration when their offer has been declined. You will all regroup, get searching again and probably need some cheering up after a few ‘keepers’ have slipped through their fingers. Determination and repeating the steps above need to be applied until they win the offer and secure their new home.
The art of selling and buying in a seller’s market needs the expertise of an agent with a calm and analytical approach and who is able to set realistic expectation for the client. For homeowners looking to either buy or sell in today’s market, we recommend working with a savvy agent who understands the preferences, trends and demands involved in this dynamic time. Our Global Agents specialize in international real estate sales and will market listings to a global audience.
Obviously, the first priority of homeowners is for the agent to attract buyers for their home and to help them locate their new property. It also requires that you have a strong market presence online so prospective clients can find you and be impressed with your syndication list and the quality of your listings. If you have not done so already, check out some of the ways that Properstar assists with your marketing strategy. However, did you also know that clients in today’s market have an expectation to receive a high level of service.
Make sure you are following up on your leads from the Concierge service and taking the time to manage your inbox messages from your Properstar dashboard. By doing so, you will benefit from the agent who disregards these opportunities.
Today, agents are wishing for MORE LISTINGS. But besides this, there are some new and interesting aspects of the real estate market that are a direct result of the past two years of evolution, and agents can expect to see more of these in the coming months:
- Elaborate property websites and 3D tours
- Pre-sale inspections so buyers can write offers without this condition, (in countries where this is mandatory or recommended.)
- Comfy, lived-in spaces are highlighted rather than stark and staged rooms. Ex. Wrinkles in the throw with slippers by the couch, as if someone was just lounging there.
- Non-conventional floor plans like family rooms in more than one level of the home, and garages transformed into accessory dwelling units
- Emphasis on outdoor living and multi-use spaces
Agents can use these points to re-think how they would market and attract new or renovated property listings. Sometimes just using the up-to-date terminology will be what captures the attention of both your buyers and your sellers.
Real estate in times of crisis
We are closely monitoring the recent conflict in Eastern Europe and are vigorously hoping for a rapid restoration of peace. However, it is certain that the real estate market will certainly be influenced by this event. What is your opinion on the evolution of the real estate market in times of crisis? We are happy to hear from you.
More about Properstar
Properstar offers you all the marketing tools you need to attract buyers by giving you access to two real estate portal networks that increase the distribution of your listings to an audience of potential buyers that are best suited to your property listings.