Saw this on Twitter from @TonyRobbins
I wrote this a while back in a different market. I thought some of my realtor buds in different cities would find it useful.
When going after a new listing, it’s easy to get caught up in the “I can sell this place no problem” mindset. You must after all convince your potential client that you can in fact sell their house quickly and for top dollar. From the moment of your initial listing presentation, with your own words and posture, you are selling yourself on that very concept. Then 2 months, 20 showings and no offers later, you are talking price reduction. Here’s a simple way to get it gone quicker: Think like a buyer.
We all hear a lot about curb appeal and that is important. But what about porch appeal? There is an anxious moment when the agent is fiddling with the lockbox and the buyer is standing there looking around. What does he see? Cobwebs or freshly cleaned light fixtures? A recently power washed exterior or mold left over from last Spring? Dull and dreary or a little pop of color? This first impression is even more important than what they think when they pull up.
Once they’re inside, buyers tend to look for problems rather than solutions. Especially couples. We are married therefore we disagree. If one partner is getting fired up about a place, it’s kind of the other one's God given right and responsibility to put the brakes on. When your wife shows you a pair of new shoes, what’s the first thing on your mind? “How much?” When your hubby says he’s going out for poker night…same thing right? If one partner is looking like they are ready to spend $500,000 over the next 30 years, you better believe the other one is looking for reasons not to! Be that partner for your seller. Why would I not want this house? What little nit picky stuff can I find to object about? Walk around with a note book and write down all the little details you’d be reminding your starry eyed spouse of. Take those to your seller and be honest first, kind second.
But do be kind. This is in fact, your seller’shome. It means more to them than it does to you. No matter how much you value the listing or how important the commission is to your bottom line, this home and getting it sold is vastly more important to your client than it is to you. It’s their kid’s new school district on the line here. They’ve made memories here they will never forget. And it can be tough to detach emotionally from that. They are also the ones who must put their lives on hold and clean like their Mother in law is coming at the drop of a hat. It’s tough having your home on the market. So do be kind. But remember, they will only see it as kindness, they will only see you as a trusted friend if you can be honest enough to get the job done. Otherwise, all you really did for them was throw them into emotional turmoil for 6 months. Keep them focused on the end goal. Help them understand that it will all be worth it once it's done. And remind them and yourself that the only way to achieve that goal is to think like a buyer.
At Hale Family Real Estate, we do the bulk of our work here in SW Wake County. This report covers Morrisville, Cary, and Apex Real Estate. Source- TARR Report.
Is traffic increasing or decreasing?
There were 28,663 showings during the quarter in the combined areas, an increase of 16%. Housing located in Preston and Lochmere were the most shown during the quarter.
What is happening with inventory?
Combined inventory decreased by 16%, new home inventory increased 2% and resale inventory decreased 21%. There were 1,181 houses listed during the quarter, an increase of 2%. The number of expired listings decreased 8% and the number of withdrawn listings decreased 9%. The number of sellers who have dropped list price from original decreased by 27% and account for 24% of total inventory. Price dropping sellers accounted for 28% of 1Q/14 inventory. The average price drop was 4%, versus the 4% discount provided by 1Q/14 sellers. The average days on market for the active listings decreased to 61 from 68. The average list price increased 20% to $462,800.
Is anyone committing to residential real estate?
Quarterly listings with a status change to pending increased 36%. March pending sales accounted for 91% of active listings versus 54% seen in 3/14.
What happened to closings?
Quarterly closings were up 10%, new home closings were up 3% and resale closings were up 13%. The average days on market for the closed sales was 46 compared to 70 days during 1Q/14. Quarterly closings with reported financial concessions increased 57% and accounted for 67% of the total. Quarterly closings with terms of sale reported as cash decreased 26% and accounted for 12% of the total. Re-sales with LADOM between 1 and 30 increased 23% and accounted for 59% of re-sale closings. Based upon quarterly closings, the months of housing supply in the combined areas is 2 months compared to the 3 month supply at the end of 1Q/14. An undersupplied market is noted when the supply is 3 months or less.
Is correct initial list price still important?
Yes it is. Closings analyzed where the final list price was less than the original list price sold in an average of 102 days at 94% of original list. Closings analyzed where the final list price was equal to the original list sold in an average of 28 days at 99% of original list.
What are the home builders doing?
First quarter permits in the combined areas were down 12% compared to 1Q/14. This was a bit of a head scratcher given the 2% inventory increase and the 3% sales increase. I guess we can blame the adverse winter weather in February for this one. I hope this was a one quarter weather influenced anomaly and not a trend we are going to see during this year. As the metrics above indicate, this sub-market is in desperate need of inventory.
The takeaway from this report is that the market is great! If you are even thinking about buying or selling, call us! We can help you get the most money for your home or get the most home for your money.
Father to two wonderful boys, husband to one smokin' hot wife...this Marine vet did better than he ever should've :-) Or...maybe this is Christine writing this one. See if you can tell :-)