My new motto: Stay calm and sell on!
It’s officially what I call the ‘new norm’ for real estate and here’s how we can all win: Let’s promote calm amid the chaos. Buyers and sellers can sense trepidation and the most important thing is to remain calm and confident that everything will be OK … because it will! Sure, there’s extra paperwork, new forms, new guidelines, but once you understand what’s happening, it’s back to business as usual. At the end of the day, sellers still want to sell and buyers want to buy and we’ll help them figure the rest out from there.
Sure, in the coming weeks and months we might see more changes, but as agents we have to prepare, be flexible and be on top of information so we can educate clients and let them know what their options are. The goal is and always will be: Get the highest price in the least amount of time.
The biggest change that took effect as of August 17, 2024 is that buyers are now required to sign a written agreement before an agent can show them a home. The agreement articulates the services buyers will receive from their agent and how concessions will be paid. On the concession front, I believe a majority of buyers will check the box on this agreement that says the buyer’s agent will pursue concessions from the seller, which would be the business-as-usual option.
If the offer is solid, I believe we’ll see sellers continue to pay these concessions in order to expedite the sale of their home. It’s been a successful formula in the past and rocking the listing boat isn’t going to help the seller achieve smooth sailing. We’re in a market right now where inventory is up about 25-30% across the board, and buyers are taking longer to make decisions. Savvy sellers will understand that in this type of atmosphere, it’s to their advantage to pay the concessions rather than risk discouraging the buyer from purchasing the property.
Of course, in some instances, it might not make sense for the sellers to pay concessions, for example, if it’s a special property where the seller offers limited compensation, a development deal or a distressed property. In those situations, there’s more flexibility on concessions. If you’re sitting on the hottest property in town, you can be selective, but if your home has been lingering on the market for three or four months and the first offer you get is asking for the seller to pay the concessions, I’d advise the seller to be careful about how they respond to the buyer so as not to discourage them.
This is why in our “new norm” real estate world, it’s CRITICAL to work with an experienced buyer’s agent and an experienced listing agent who can offer expert, strategic advice and consultation to help you achieve your goals. At the end of the day, maybe it’s a great property at a great price and a buyer’s agent can advise you on how to move forward. Or, maybe it’s not the right property for you and the agent says, “Let’s keep looking.”
Remember: A good real estate agent is not solely incentivized by commissions. They’re looking to be your Forever Agent. For more than thirty years, I’ve really been focused on providing expert advice and participating in the long game where it’s all about creating an incredible experience and lifelong connection vs. doing whatever it takes to make a deal happen.
So, what’s the big takeaway in this ‘new norm’ of real estate? Don’t panic. We all have the same wants and needs. Sellers want to sell, buyers want to buy. Yes, there are some changes that impact how those processes now work, but it’s critical to navigate these changes together and ultimately, to cooperate so we can achieve real estate’s greatest goal: helping our clients win.
Whatever you do, Stay Calm and Sell On!
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com