Here are some tips to help educate sellers about the shifting market.
As a real estate agent, it’s important to stay ahead of the market trends and educate your clients on what’s happening in the industry. Many of your clients may be hesitant or have objections about buying or selling a property and want to wait until rates drop. It’s your job to help them understand the current market conditions and make the most informed decision possible.
In today’s market, interest rates are still at historically low levels, ranging from 5% to 6.5%. With rent prices increasing by 8% over the past year, make sure to educate your clients on the benefits of building equity in a property that they actually own. Waiting for interest rates to drop or for the market to calm down may not result in the best outcome.
“Regular updates with your clients can help determine if a price reduction is necessary.”
The market has shifted from a speed-based market to a skills-based market. Price is the most important factor in a successful listing, followed by condition and location. Overpricing the home could result in fewer showings and no offers, so it’s important to communicate with your clients and be prepared for the possibility of a price reduction. A rule of thumb is to consider reducing the price by $5,000 if there have been no showing requests after two weeks or if there have been 10 showings with no offers.
Communication is key in any market, and regular updates with your clients can help determine if a price reduction is necessary. It’s also important to reach out to the other agent and buyer before making any adjustments to the listing. If you would like to discuss this topic further, book a strategy call with me today.
