March 2020 was a time of great uncertainty and fear – the world was closing down. No one could have predicted what has happened in the real estate industry since that time.
Almost two years later, it continues to be a strong seller’s market. Housing supply is now measured in weeks, not months. From my point of view, there are two main difficulties faced by owners who are considering selling.
The first: Although a house may sell quickly, there may not be a suitable place to move to. Many times I’ve heard people say, “We thought about selling, but where would we go? » The inventory of available homes remains tight. And if someone has to sell their house first in order to buy another, the situation becomes more complicated.
The second situation involves the realtor as well as the landlord. In such a strong seller’s market, it is tempting for the agent to reduce marketing costs. The house is going to sell anyway, right? Why should an agent spend money on professional videos, glossy color brochures, and social media advertising? Why hold a private open house for real estate agents, lenders, title holders and receivers – spend the money on food, drink and live music?
This is where the dilemma lies. This line of thinking can put the agent’s self-interest ahead of the client’s, which is to maximize the equity in their home. Appraisers will tell you that the only leading indicator of a home’s value, above all else, is the purchase price. This requires the real estate agent to position the house in its most favorable light; to make sure it “looks like the part” to justify the purchase price to the buyer.
Both issues can be resolved with the help of a real estate agent who displays a strong work ethic and strong ethics. A buyer’s agent needs to dig deeper and uncover hidden gems that aren’t yet on the market. A seller’s agent must have the financial will (or ability) and marketing expertise to create greater demand for the home, which increases its value.
Next month, I will address the difficulties faced by buyers here in the Far North Valley.
To contact Darrell Doepke, email him at [email protected] or call/text 480.440.6946.