New Market Realities
- Listing Inventory is UP 91% and vining. Today there are 732 active For Sale Listings in The Woodlands. Last year at this time there were 373.
- Above $700,000, sellers and their agents now compete in a buyer’s market.
- Improperly priced listings sit unsold. Average Days On Market (DOM) for unsold listings is 88 days. Average DOM for recent sold listings is 53 days.
- 45% of the sellers who have had their properties for sale more than 30 days have had at least one price reduction (202 our of 446).
- Month-To-Date written sales indicate this months total sales (all brokers combined) will stumble 20% compared to last year’s March total.
- Negative press may weaken home buyer confidence causing cautious elective buyers to postpone buying decisions. (Postpone, not cancel.)
- The Average Sold Price To List Price % has slipped from 98% to 97%
- Average Days On Market (DOM) for sold listings has increased from 39 DOM to 53 DOM (Comparing closing data from February 15th – March 16th, 2014 to the same time period this year.)
- Competition for prime properties below $700,000 is keen.
- Slow decision making leads to lost opportunity.
- Less negotiation power for price and terms.
- Lost opportunities due to an unrealistic I-want-a-steal mentality.
- While still a seller’s market below $700,000, competition with other motivated sellers and builders to attract a qualified buyer is growing.
- For sellers priced above $700,000 it’s a buyer’s market. A buyer’s market means less seller negotiating leverage for price and terms.
- Seller’s may have to respond quickly and aggressively to price reductions from their competition.
- Competitive pricing, thoughtful merchandising, muscular marketing and keen negotiating skills are key factors in a successful sale.
- Choosing a weak broker or agent can lead to lost sales opportunities, a lower sold price, inconvenience and extended days, weeks or months on the market.
- You need to take twice as many listings this year than last year. Because inventory is up double and sales are likely to fall behind last years totals, if you take the same number of listings as last year you will earn significantly less. It’s simple math. Fewer sales divided into double the inventory equals disaster for those who don’t respond to the market with action and purpose.
- Listings in all price ranges are staying on the market longer. More days on market creates stress for your seller and requires more patience, communication, follow up, follow through.
- Superior marketing is required to achieve a sale and satisfied clients.
- Seller’s incorrectly view the market and their opportunity to sell swiftly for Top Dollar through last years hot-seller’s-market lens. Helping sellers choose the correct pricing position requires more education, samples, examples and detail.
- Every listing presentation opportunity is more valuable, requiring a more persuasive presentation skills and effort.
- We may experience the return of the unrealistic I-want-a-steal buyer and I’m-not-giving-it-away seller.
- The selection of homes is the best it’s been in years.
- For the I-have-to-sell-before-I-buy-but-I’ve-been-putting-it-off-because-I-was-afraid-I-couldn’t-find-anything-to-buy buyer, we have great news! Selection is up, up up.
- Buyer’s shopping in the over $700,000 price range enjoy a buyer’s market; better selection and less buyer competition.
- In price ranges below $700,000, aggressively marketed, well located and competitively priced properties enjoy a seller’s market; more buyer demand than other seller competition.
- Hundreds and hundreds of inbound corporate transferee buyers moving to the area through the third quarter.
- Under $700,000 remains a seller’s market. You hard work will be rewarded for taking listings under $700,000.
- Today’s postponed buying decisions are temporary. When perceived stability with oil prices returns, smart agents who stay-in-touch will reap the rewards as pent up demand surges sales forward.
- Knowing the market and how to help you clients WIN attracts more business.
- Out smarting and out maneuvering your competition in a shifting market yields a first-to-respond positive compound effect in the present and the future.
How To Counter Balance Market Trends In Our Favor, Out Maneuver Competition and Better Serve Our Clients:
- Top Of Mind Awareness is the key to being chosen. If you aren’t sending a monthly direct mail piece and a direct email piece to everyone in your sphere your income will shrink. Don’t shrink. Set an appointment with Linsey or I to map out a simple strategy that will attract opportunity. Do it today.
- To expand your orchard of opportunities beyond the boundaries or your personal sphere, launch a turn key Geo Farming System. How? Set an appointment with Linsey or I to map out a simple strategy that will attract opportunity.
- To attract opportunities and grow your reputation as an In The Know Pro answer “How’s the market?”, “How is oil effecting sales?”, “Is now a good time to sell?”, “Is now a good time to buy?”, “Will home prices fall?” questions with confidence. Study the trends and practice your answers.
- To attract more listing opportunities, set your cheerleader friends up on First To Know neighborhood auto alerts using MLS Fusion.
- To stay Top Of Mind spend seventeen minutes a day on Facebook clicking the LIKE button and commenting on other peoples posts. Wish everyone a happy birthday. Want more know-how and giddy-up? Attend this Master Facebook In Seventeen Minutes a day workshop.
- Time Block fifteen minutes to watch this How to Get More Referrals Straight From Your Database video from Coach Tom Ferry. Schedule a fifteen minute meeting with Linsey or I about how to smash one of these simple, modern and powerful strategies into action.
- Invest extra care and time in preparing your CMA and patience in educating your seller on current market trends. If you need tips please see Linsey or I asap.
- Invest extra attentions in delivering your listings presentation with compelling confidence. Attend our next Listing Presentation Workshop and get your presentation axe sharpened to a razored edge.
- Run and updated CMA for all your current listings. If the market data indicates a price adjustment is required, set an appointment with your seller to review the updated CMA and adjust the price. If you need ideas for strategy and dialogue, see Linsey or I asap.
- Using Fusion create a First To Know neighborhood alerts for all your listings. Respond quickly to new listing competition, price changes and sales information.
Thanks for your time and attention. Please call on Linsey or I if we can be helpful. Ken b.