Real Estate 2022 – A Space Odyssey
by Marilyn Urso, PMN
For anyone working in the real estate industry for more than 3 years, this is truly a very unusual time for our industry. Housing prices have gone “where no one has gone before” … and they keep going! Bidding wars, low inventory, and high demand for homes have made the past 2+ years very difficult to maneuver. Sellers can’t sell because they have no place to move to and buyers can’t buy if they can’t outbid the competition. When will it end?
In looking at these dilemmas that agents face daily, the best advice is the old scouting motto: Be Prepared. We must coach our customers and clients on what to expect whether they are selling or buying a home. And most important if they are selling and buying – how do they prepare for the chance that they sell quickly, but can’t find a place to buy as quickly.
Let’s look at the selling side first. Yes, prices are very high (up by approximately 18% across the country), but this doesn’t mean the average home should be priced that high. You need to make sure you get all the true comparable listings and explain to your sellers exactly where their home fits in. Also, talk to them about the importance of staging and preparing the home for the best possible showing. I’ve always said “You don’t get a second chance to make a first impression”, and in this market that is definitely true. The other idea to consider is that a more reasonable list price should encourage a wider audience of potential buyers which could create multiple offers.
While multiple offers sound enticing to a seller, it is definitely something you need to discuss upfront. After all, it’s not just about the price; the terms and conditions matter also. Are the buyers pre-approved for a mortgage? What type of mortgage? Will they provide Proof of Funds? When do they want to close? How much are they putting down? Go over all the scenarios in your presentation so there are no surprises.
But let’s face it, in this market selling is the easy side of the transaction. Let’s look at the coaching and counseling we need to do with buyers. Pre-approval, Proof of Funds, terms and conditions of their offer are all important. When do they want to close? So many questions.
You definitely need to explain the current market to them just as you did for the sellers. Yes, they may have their current home in contract, and they may be offering a great purchase price, with a small mortgage and great down payments, but if someone comes in with a similar offer and nothing to sell or perhaps an all-cash offer, they might lose the opportunity to buy that home. It’s definitely disappointing, but it’s up to you to prepare them for that upfront. It will lead to a better relationship for you and hopefully a successful transaction.
So, who has the crystal ball to tell us if we will continue to go “where no one has gone before” – I certainly don’t! Good luck to you all and happy selling!
About the Contributor
Marilyn Urso has been in the real estate business for over 27 years. She was a Broker /Owner of her own real estate office for over 22 years and is currently an active Associate Broker working for Homes by Mara Realty in Syosset.
Marilyn has been an instructor at the Long Island Board of REALTORS® since 2007. She has written and instructed various continuing education modules for LIBOR. She has also been an instructor for the NYS Association of REALTORS® as well as the National Association of REALTORS®.