This is now: Homes setting on the market for weeks and months without any prospective buyers even walking through. Low-ball offers that sellers are glad to see. Real estate agents dropping out of the business.
Yet there have been no huge interest rate increases. Traditional motivations for housing changes are still there - growing families, shrinking families, new families, relocation, different needs. This is a puzzle for all of us, consumers and professionals alike. I have a theory, based on my 33 years experience and my observations.
It's the media's fault! Seriously!
The ol' story of record-breaking housing sales had lost its sizzle. The housing boom that was fueled by fear of price increases became "ho-hum". So it was time for a change to keep the real estate story alive. Media reports chose to quote the negative-thinking experts instead of the postive-thinking ones. (Both are ALWAYS out there.) They predicted a housing bubble and pending crash. And a lot of people DO believe what they read. After months of pushing the "housing bubble" theory, the story became self-fulfilling. 'Truth is, the factors which typically impact housing sales didn't change significantly from last year to this.
It doesn't really matter who's fault this is, however. Home buyers have retreated to wait for ..., well - I don't know exactly - but I'm going to venture a guess: an experienced real estate professional to lure them back into the market place.
It's true. Home sellers need an experienced real estate professional more than any time in the four decades I've been selling homes. Notice the emphasis on the word "experienced". Real estate agents who have been in the business for five years or less have never sold homes in a buyer's market. Buyers have come to them. Agents haven't had to prospect for buyers. Agents haven't had to SELL buyers. Agents haven't had to MARKET homes for sellers. This is no time for any home seller to base their agent selection on whom they like, regardless of qualifications. Home sellers need to focus on choosing an agent with home-selling experience in a buyer's market. It will make the difference between success and failure in their home sale.
Experience is defined as "the act of living through something" and/or "knowledge and skill developed through repeatedly doing the same thing". Fewer than 50% of licensed real estate agents in most market areas have been in the business more than 5 years, so home owners can't risk their home sale to just any agent. When you interview agents, don't just ask about their recent business accomplishments; ask about the sales strategies and tactics they used in the last buyer's market. Find out how many homes they sold in previous buyers' markets.
A real estate agent must be pro-active with an accurate buyer-profile, creative and consistent marketing, exceptional service, and patience to literally coddle them long-term until they make a buying decision. Home buyers are out there to be found, they're even willing to come out of their hiding places with a little courting, and they do still appreciate a home that is priced "right" and in good condition. But those are topics for another day.
Today's lesson is this: If you want buyers to find your home, choose an experienced real estate professional to represent you in your home sale.
Feedback or more information:
- Email: mwoda@remax.net
- Website: www.MargaretWoda.com
- Crofton Maryland Real Estate
Where have all the buyers gone?
Copyright 2006. All rights reserved. Margaret Woda
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