Changing Market? Home Buyer and Seller Advice
Price cuts are becoming more prevalent, and inventory is on the rise. With this in mind, many are curious on how to advise clients who are looking to buy or sell.
We’re here with advice that you can give to your buyers and sellers.
It might not be smart to wait for big price drops.
The fact is that if buyers wait around for a significant price drop, they’ll be waiting for quite a while. They might even lose the property they had their eye on.
Every year, the selling market slows down in the fall and winter, but this year it will be especially noticeable as people are pulling out due to budgetary constraints and lofty interest rates. While home values will decline in these ‘off’ months, it won’t be by a notable amount.
Those small prices are made inconsequential by low inventory. When prices reach an affordable point, the buyer in question along with everyone else on the sidelines, will dive in – and that demand will push prices back up.
Take your time and choose the right home.
If you have a buyer who can afford to buy their dream home right now, it’s a great time to do so. You don’t have to waive contingencies or worry about bidding wars, and buyers are armed with the power of negotiating for the first time in a while.
Because buyers have this power of negotiation, encourage them to use it to their advantage. A buyer should take their time, think things through, and make sure they’re happy with the purchase before making decisions.
Remember what the market looked like before COVID.
Don’t just tell your buyers and sellers to look at the market six months ago. Take a bigger step back and remember how it was three years ago, before the pandemic and its effects.
While looking at the big picture, help buyers and sellers realize that the current market trends are not abnormal. It’s okay if a home takes a few weeks to sell, if you have to cut prices in the late summer, or if you don’t get a slew of offers.
In the end, you only need one buyer! Try to forget the feverish state of the pandemic market and take it for what it is in 2022.
One Step at a Time
Remind your buyers and sellers that the process is just that – a process, and it won’t happen overnight. Use this advice to help your clients get the most out of their sale or purchase.