You might wonder how a successful real estate team who just had breakout sales this 2019 season could call this year’s season a bust. The market wasn’t terrible, it just didn’t live up to many sellers’ expectations. This is the exact reason why the market had so many expired listings and fewer closings this season.
In fact, of the 12 market measures we track each month, all 12 went negative in March. This is the first time in as long as we can remember that every single measure went negative. Earlier this year we pondered whether season was going to mask the shifting market we were experiencing going into season, and the answer is in.
Sellers generally want to list their home with a Realtor that is confident and positive. There is a difference between being positive and knowing the market. The Ellis Team is positive in any market. We know marketing sells homes, and when the market shifts that becomes even more important. Sellers can’t discount the commission away enough to make up for what’s going on in the market.
Sellers often think if the market is slow, I’ll just list with a discount broker and that’ll enable me to sell. The reality is they’re giving up marketing, which is the precise thing you need when the market shifts. Saving a few commission dollars can cost you thousands on your sale price due to lack of marketing and limited buyers. Some Realtors hold a few open houses, place the home in MLS and a few hundred websites and call that marketing. That’s not marketing. Every home is on a few hundred websites. That part is automated by the MLS.
If you go back and read our Blog http://blog.topagent.com you’ll see we’ve been discussing the market for months and what’s really going on. There is a fine line between hiring a Realtor that is positive and one that is real.
For instance, our team has been though several market shifts. The average Realtor hasn’t. We know what it takes to sell a home when the market shifts. The first thing you must do is identify the 12 market measures, then identify where we are today. You can’t counsel a seller on how to market their home and where to price it unless you understand where the market is and all the factors influencing it.
This is the silly season for Realtors. Many Realtors didn’t accomplish their goals this season. Total dollar volume of sales was down 13.6% in March alone. This means Realtors are hurting too, and they’re going to be making moves now that season is over.
Some agents will move to less costly brokerages in hopes of a higher commission split. They’ll receive fewer benefits for themselves and their clients. It will be a last-ditch effort to cost-cut and save their career. If you’re interviewing agents to list your home, ask them if they plan on making a move. If they do, can you get out of your listing contract?
Other agents will seek to join a team, or move to a company where the technology is better, or pays for more things like marketing, photography, brochures, assistants, etc. Sellers need to know who they’re listing with and exactly what services will be provided. Remember, the broker owns your listing, not the agent you sign with. Be sure to get clarity and in writing whatever you agree to.
Study the market measures. Ask your agent to show you how the market is performing. You’ll want monthly updates on new pending sales, time on market, median and average prices, inventory supply and market absorption to name a few. If the agent you’re interviewing can’t provide this, interview another agent. This market is changing, and you want a Realtor that will tell you what you need to hear, not what you want to hear. This market has enough sellers that listened to what they wanted to hear. They still own their home, which is not what they really wanted. Ask for our Free Report on which agents had the most expired listings in the past year.
You can call Brett or Sande Ellis 239-489-4042 Ext 4 to talk about selling your home or go to SWFLhomevalues.com to get a free online report of your home’s value.
Good luck, and Happy Selling!