Today I have our Sales Manager, Meagan Nungester, here with me to talk about the Temperature of the Market from both a Buyer & Seller’s perspective!
Shannon: Thanks for being here, Meagan.
Meagan: Yeah, super excited!
Shannon: Just so all of our viewers know, Meagan is over our agent team and our sales division, so she’s involved with hundreds of contracts every single year. She’s involved with the conversations with both buyers and sellers, so she always has a really good sense of what’s going on in the marketplace. So, Meagan, now that the market has slowed down a little bit and homes are staying on the market longer than they were the last two years, what does that mean for buyers?
Meagan: We are noticing that with homes staying on the market longer, you may be able to get a home a little less than the list price, or that a seller may be more willing to cover some of your closing costs. The seller still has costs and fees that are part of that home and so the longer it sits on the market, the more willing they are to maybe drop the price to sell it. A lot of times, sellers want or really need to sell before they can move forward with future plans.
Shannon: So what does this mean for sellers then?
Meagan: I still think it’s a phenomenal seller’s market! Mainly because homes have appreciated year after year, so almost every homeowner has equity. Even if your home sits on the market a little longer than you thought or would have liked, and you make a price adjustment or someone comes in and offers a little bit lower, you’re probably still making money on the sale of your home, so it’s still a great time to sell.
Shannon: Is it a time where a buyer can get a great buy?
Meagan: You know, I don’t go out there and tell buyers that they can get a great deal today because homes are on the market a little bit longer! That’s not the case, but I am seeing some great homes hit the market, that are a good value. And what should be more important to a buyer than getting the deal of the century, should be making sure that their investment is protected, that they’re not losing money if they go to sell in 3 to 5 years, and there’s lots of homes on the market right now that are great values that buyers would be smart to pick up.
Shannon: So if homes are staying on the market longer, does it mean they’re overpriced?
Meagan: Not necessarily! I mean, sure, that’s one thing that it could mean, but there are a lot of factors as to why a home might sit on the market a little bit longer than anticipated.
Shannon: What other factors should Buyers and Sellers be considering?
Meagan: They should consider whether the listing agent is giving that home the exposure that it needs, and do they have a great marketing plan for that home? That’s one factor. Another factor is whether it’s a challenge to get in and show that home. So, it’s not always a price issue, and consulting with an experienced buyer’s expert will help you determine if it’s price or something else keeping the home on the market longer.
Shannon: Yes, I agree with you on that. So do you think it’s a Neutral Market right now?
Meagan: Yeah, I’d say so. I think that the lower inventory and the higher interest rates have caused a little bit of a calm, which is good for everybody.
Shannon: Everyone? Why?
Meagan: Yeah! Well, you know post COVID, the market went crazy. So for some, it was exciting because it was a seller’s market, but there were also a lot of sellers that were very afraid with that type of market. They were afraid that if they sold, they wouldn’t have anywhere to go. They would have loved to jump on that wave, but it was overwhelming. And then the flip side of that point is what buyers were experiencing. To secure a home, they were sometimes having to go thousands over the list price, and then come out of pocket for the difference between the price they secured the home at and the price the bank said it was worth. So it really wasn’t the best time for everyone. Now, both buyers and sellers have the ability to slow down a little bit, really think through the purchase or the sale, and take the time to feel like they’re making a good, wise decision.
Shannon: I agree with all of that. Thank you, Meagan, for joining us today.
And remember if you or anyone you know is thinking about buying or selling, give us a call! My team and I are on standby 7 days a week, 9am to 8pm, ready to help you take the smoother road to sold.