It's Conditional
WELCOME
Hello! It’s Spring Break week here in Atlanta so it’s a bit of a ghost town. Everyone with kids has taken off for the beach. I never mind a quiet week because it gives me time to re-group, plan ahead, and look at my systems to make sure they’re all flowing smoothly. (True downtime is a myth, am I right?)
Today we’re going to cover something I’ve never seen so emphasized in the market before and that is a home’s condition. I just did an Instagram Live about this so I’m going to share what y’all have to say about this, too. Let’s get to it!
If you’re looking for your buyers this week, here they are. Photo by Prescott Horn on Unsplash
THE REALITY OF REAL ESTATE
Everyone’s Asking, “Now What?”
The biggest thing on all of our minds right now is still the fallout from the NAR settlement. Per an article I just read on CNN, potential clients are reacting to this news in different ways.
Some buyers are holding off with their search because they think they’re going to see lower prices after July. (Spoiler alert: they won’t.) Conversely, some buyers may jump into the market now, specifically to avoid all the changes. And the reporter quotes one seller who’s decided to take a different tactic. Per the article:
“After the NAR settlement was announced, though, [Hanley] changed course: Instead of offering to pay a commission that would be split between his agent and his future buyers’ agent, he asked his agent to write “0%—negotiable” as the buyers’ agent commission on his home’s listing page. ‘Why wait for the settlement? This is common knowledge now,’ Hanley said. “I’m going to try to be at the start of this bell curve.’”
I’d be lying if I said I weren’t invested in seeing how this works out for him.
Now, if you want to listen to an expert and not some guy who does not sell real estate for a living, on Yahoo!Finance, Barbara Corcoran predicts:
“If interest rates come down another point by year-end, everybody and their in-laws are going to look for a new house, and the competition’s [going] to be so fierce that house prices will have to go up.”
So for now, we wait, we see, and we keep concentrating on the fundamentals that have kept all of us in business thus far. As always, the best thing you can do is to inform your clients on how this is going to impact them.
STORY TIME WITH GLENNDA
A Small State of the Union
I did a brief Instagram Live Post from the Porsche on Monday where I talked about the biggest factor driving home sales right now. Now, there’s always three pillars that make up the formula for a home’s sale: price, condition, and location. It’s the holy trinity.
In my experience, price is most often what drives the market, with location being the occasional second. But oh, my stars and stripes, I have never in my career seen a home’s condition become as important as it is right now.
I can’t say for sure why this is happening, but I’d guess it’s that buyers are suddenly looking for the Amazon Prime experience, or maybe it’s that HGTV expectation. I’m seeing buyers exclusively who want to do nothing more than bring their toothbrush. People are taking a hard pass on anything that isn’t in complete shiny penny condition, even when the home’s price is off-set by the current condition. I wondered if it was just my market, so I asked around and here’s what y’all had to say:
@blondeem in Kansas said: “I’ve started thinking it’s because our society’s just stuck in instant gratification mode (this applies to all generations and ages, not just with the younger ones) and this isn’t just with homes. We have gotten to the point that disposable is the norm… The thought of a ‘starter house’ used to mean you’d expect to put some sweat equity into it over the years, even if that meant just painting walls! Now that expectation is move-in ready with zero maintenance.”
@homeapprovalteam in Dallas said: “I believe we’re gonna see that more going forward, especially with this new ruling. If buyers are going to have to start paying their agent commission, the money they would normally use to make repairs/improvements they will no longer have, so now it’s going to be on the seller to make that condition drive the price and warrant the payment.”
@kimfaganrealtor in Pensacola said: “I think it has to do with the buyer feeling the financial crunch of the higher homes’ prices, rates and household budgets tightened by higher consumer prices in general… there’s no money left to update, repair, or remodel to make the space fit their family size.”
@_oxjustjessxo_ said: “As a buyer, the interest rates are too high to move into something that needs a lot of work.”
@kellyszemborski said: “Chattanooga has become a flipper’s paradise, and people are 100% putting condition first. I’m seeing more people willing to drive further and max their budget to get a house that’s already perfect for them.”
@betsytaylorhomes said: “Condition is paramount in the DC metro area.”
@maui_jess said: “Out here in Phoenix/Scottsdale, it is absolutely condition. It seems our buyers at any price point feel they are spending so much that is what they require.”
@kfg_danielgale in New York said: “Condition is driving the market… plus the interest rates don’t leave any extra money in the budget for fixing anything.”
@kauaijamie in Hawaii said: “Now more than ever, I’m recommending pre-listing home inspections to sellers—if they aren’t prepared to address the aesthetics, at least the repairs are completed.”
So, it sounds like condition being the driver is not only universal, but also here to stay, at least for the moment. The good news is, we can use this information, we can strategize with our buyers and sellers about it, and we can hope our clients have the good sense to listen to us.
Insert heavy sigh here.
GLENNDAISM
Please Don’t Make Me Say “I Told You So”
This will be a lot easier if y’all just listen to me in the first place.”
GO HOMES.COM WITH GLENNDA
I have to tell y’all how pleased I’ve been with the way that Homes.com has stepped up to the plate this year. They have made themselves invaluable to me and to my clients, and I am so appreciative on how it’s my listing and my lead. If you’re looking for unmatched exposure for your listing and your brand (because it’s more important than ever), I highly recommend a Homes.com membership!
