Picking up the thread…. Sellers have selective memories. Fluid understandings about the market and how it works. When things are going well, the machinations of the market seem obvious. When the cycle shifts, the message morphs into a mystery they just can’t seem to fathom.
Do the market’s dynamics function differently in different markets? Is that why a Seller’s ability to “get it” vacillates between such extremes? My own perspective is that the market is an extremely honest feedback system. It tells the truth and delivers a consistent message in every market cycle.
Rather, it’s the gap between people’s expectations and results that tends to fluctuate wildly in different markets. Since expectations arise in the non-rational regions of the brain and results are usually interpreted through the lens of our emotions, both are easy avenues for disconnect.
To help Sellers adjust to the shift that’s going on right now, here’s one fundamental truth about real estate that everyone should hold to be self-evident: at the right price, everything sells. (Yes, it really is that simple.)
If you are one of those Sellers who ís struggling to figure out what the market is saying, here are the six most important ways it is talking directly to you:
Open Houses: How many people are attending your open houses? 10? 50? 100? If you don’t know, find out. If you aren’t having open houses, you’re blowing it. The primary audience for Santa Cruz hails from over the hill and weekends are when buyers come.
Showings: Is your house being shown independently outside of those opens? How many separate showings have you had? Have some Agents brought the same clients through more than once? If you don’t know, find out.
Days on Market: Has your listing been on the market for less than a few weeks? Or more than 30 days? If you’ve already reduced your price, how many days have gone by since you dropped it? If you don’t know, find out.
Feedback: What are buyers and agents saying about your house? What recurring observations are being voiced? If you aren’t hearing the feedback from agents and buyers, your agent isn’t doing their job. Find out.
Request for Reports: How many buyers’ agents have actually asked to see the collection of reports and disclosures that your agent has hopefully worked so hard to help you compile? Find out.
Offers: Have you had offers? Even low ones? Hopefully you know the answer.
These are all the ways the market communicates. In every kind of market. Next week, we’ll discuss how you can interpret the fundamental truth about your price, after you’ve gathered all the feedback.