Let’s talk factually. There is a lot in the news cycle lately and it seems like the less educated and less knowledgeable people seem to have the loudest voices. So, let’s respond with the facts. Sticking to the facts is the only way that I can maintain sanity and attempt to spread accurate information over the layers of misinformation. So, let’s break it down for you…
Home sellers continually seek innovative ways to attract buyers and expedite the selling process. This has not changed. In 2023, the real estate market witnessed a significant shift in seller behavior, with a notable increase in the utilization of incentives to entice potential buyers. Should we repeat this??? Incentives. Now, as the industry evolves, understanding these trends will continue to be paramount for educated sellers aiming to maximize their selling experience and achieve optimal outcomes.
It only takes one loud seller who did not have the fortitude to hire an educated or experienced REALTOR to represent them to cause a class action lawsuit to happen while over seventy percent of sellers are very satisfied. In fact, in reality, a staggering 71% of sellers expressed profound (you know VERY) satisfaction with the selling process, underscoring the efficiency and necessity for professional real estate representation in the marketplace. While only a mere 9% of sellers said that they were somewhat dissatisfied with the process (wah wah). Now, because I am a REALTOR and I love to teach, I want to teach those 9% and make them level up yet I believe those may be representative of ‘part-timers’ newbies with no supervision, and there’s no fix for either of those really. Therefore, the prevalent misconception running rampant in the news cycle currently is that in the realm of online information and consumers googling how to buy a home, since sellers overall are very satisfied with the services of REALTORS and not having REALTORS in the transaction can and most likely will lead to detrimental consequences for sellers.
Despite the overwhelming satisfaction among sellers, it’s essential to acknowledge the nuanced strategies employed to facilitate successful transactions. Notably, 33% of sellers opted to leverage incentives above offering cooperative compensation for a home buyer to have representation as a means of attracting prospective buyers—a substantial increase from the previous year. This shift underscores sellers’ adaptability to market dynamics and their willingness to explore innovative approaches to optimize their selling journey.
Delving deeper into the realm of incentives, it becomes evident that sellers are strategically utilizing various offerings to augment buyer interest. Home warranty policies emerged as the most sought-after incentive, providing buyers with added assurance and peace of mind. Additionally, assistance with closing costs ranked prominently, further incentivizing potential buyers to pursue listed properties.
It is important to remember that when more houses are on the market than there are buyers (you know… supply & demand), sellers have to be creative and a seller turning to their REALTOR is a strategic benefit to their success. Therefore, the correlation between the duration of a property’s listing and the likelihood of offering incentives unveils intriguing insights. Properties lingering on the market for an extended period exhibit a higher propensity for incentivization, with 31% of homes listed for five to eight weeks incorporating such offerings. In contrast, properties listed for shorter durations display a lower incidence of incentive utilization, with a mere 12% offering incentives for listings lasting less than one week.
These findings underscore the dynamic interplay between market conditions, seller strategies, and buyer preferences. By embracing a comprehensive understanding of these dynamics, sellers can strategically position themselves to navigate the real estate landscape effectively. From harnessing the expertise of seasoned real estate professionals to leveraging enticing incentives, sellers possess a myriad of tools at their disposal to optimize their selling experience and achieve desirable outcomes in 2023 and beyond.
Statistical Source: National Association of REALTORS’ 2023 ‘Home Buyer and Seller Profile’
