Throwing Stones in Glass Houses - Issue 391

Interesting things happen when the market shifts.

We’ve been reporting the slide in sales in the local as well as the national housing market. Prices are still high relative to the 5 year and long term average. Interest rates, as we are all aware, have peaked and are staying put as long as inflation persists above the magical 2% mark. All these factors mean fewer people are stepping up to buy homes under the current conditions. Homes are staying on the market longer, inventory levels are slowly building.

It’s a tough market to navigate. And whenever a market becomes tricky to navigate and homes don’t sell as quickly or for as much as the sellers want, sellers become upset.

There are very few reasons why a home doesn’t sell:

The price is too high.

The condition of the home is not ideal (the price is too high).

The terms and conditions the seller wants are not appealing to buyers (the price is too high).

There’s too much competition in the neighbourhood (the price - you guessed it - is too high).

Most sellers won’t readily admit their home is overpriced or that the home is in less than model home condition. Instead, they’ll rationalize that the home isn’t selling for any number of reasons - which ultimately means the agent is to blame and needs to go. (Sounds like how professional sports teams work!).

There are a lot of agents getting fired recently and, no doubt, a lot will be fired over the next few months.

We’re often called in when an agent has been fired, taking over the sale of a home that has been languishing on the market. Some of these sales we can see that a few simple changes and suggestions will make the home more appealing and will result in a sale. Other times, the original agent has done a competent job and I don’t see what the original agent did or didn’t do to warrant being let go. Too often the homeowners would rather blame the agent than look in the mirror and admit they wanted too much for the house, or ignored the advice to stage, clean up, or paint to make the house more attractive to the market.

Don’t get me wrong. The real estate industry is saturated with agents and not all of them are effective. Often a change of brokerage and agent is necessary. Most times however that’s not the case and unfortunately a number of agents will continue to get fired.

Over the past 37 years, I’ve been on both sides of this equation. I’ve been fired more times than I care to remember, leaving the house with my sign and marketing materials knowing that the next agent on the way in would get a price reduction or convince the seller to make necessary repairs and, in short order, a sale would be reported.

Nothing stings more than knowing that the advice and knowledge you provided which would have resulted in a sale, has been ignored.

The challenge is that a lot of sellers will decide to list based upon who will charge the least amount and list for the highest price. The best option, of course, would be to work with a seller who values and understands the expertise and advice we can provide instead of using the agent as a scapegoat.

I don’t want to be the second broker on a listing. I prefer being the last broker - the one that makes the sale happen.

Enjoy the weekend. Only 10 more sleeps!

Paul

Appointment Calendar: https://calendly.com/homegrouprealty

Want to search for opportunities in your area?

Search for Homes Here