Ask An Agent: What’s Selling in Today’s Market & Why?
Ask An Agent: What’s Selling in Today’s Market & Why?
At NurtureSource, we know that good design and renovations make a difference when it comes to selling homes, but naturally, we’re a little biased. So we asked some of the Bay Area’s top agents what homes are selling in today’s shifting market and why. Here, they share their expert opinions.
If NurtureSource sounds like a fit for you or your client, let’s talk. Schedule an introductory call.
THE AGENTS
THE INTEL
Editor’s Note: These interviews have been condensed and edited for clarity.
1. What are your thoughts on the current market?
Marc Guay: “Demand and supply are down because of interest rates, and the rate of sales has definitely slowed, but a lot of agents are still very busy. Newer agents haven’t seen these downturns in the market. It’s very cyclical, and I’ve learned not to freak out.”
Eileen Townsend: “This year was slow getting off the ground, but the market heated up through spring and summer and even into September. So many more listings hit after Labor Day and now there’s a lot more on the market. As inventory increases, and interest rates and the news cycle bring hesitation, I have had to warn sellers that the number of days-on-market might be longer. It’s not that the interest isn’t there, but that buyers are spending more time and looking at all the available options. There’s a constant rebalancing of the forces and factors that make real estate go. If you’re sensitive to how the market’s shifting and you’re on your game, then you’ll be able to make the necessary adjustments.”
Ira Serkes: “It’s an unusual combination of things: There’s very low inventory and fewer offers. What’s different from past years is that low inventory would typically result in more offers and more buyer demand. Instead we're seeing fewer people bidding.
I think part of it is the higher interest rates at about 7.5%. Rates are twice what they were just a few years ago, so I think some buyers just can't afford what they want to do at these rates, and they’re putting off buying until rates go down.
Frankly, I think that's a strategic mistake on the part of buyers. Interest rates will do one of three things in the future. If they stay neutral, there’s no change. If they go up, then buyers will regret not having bought when rates were 7.5%. If rates go down, more buyers will come into the market. Homes will sell for a much higher price, and the people who bought now will be able to refinance at a lower interest rate.”
2. What adjustments have you had to make to your sales strategy and process?
Marc Guay: “I really dig into each sale, figure out all the options, and collaborate closely with the client. In my decades of experience, I’ve learned to slow the roll with the client. And I never lead a client down the wrong path. A lot of newer agents try to take on all the project management themselves and then can’t get the rate of return they promised. I take time to give them all the right resources and provide a lot of knowledge. It’s a slower method of building rapport with the client, but the rapport (and trust) is a lot stronger.”
Eileen Townsend: “In a shifting market, being adaptable is key. Agents also need more tools in their toolbox because what worked for us in the past may not work now. Today’s buyers are looking for turnkey properties, and a well prepared home with no cause for objections and great design is definitely going to sell better. Sellers, on the other hand, are resistant to spending the time and money on improvements but still expect the same price. And in a lower inventory market, it can sometimes be challenging to find comps that justify either an as-is sale or the level of work we're proposing.”
Ira Serkes: “I think it's critically important to keep the client informed every step of the way. When we get a listing, we provide daily updates with the most up-to-date data from Zillow. We keep clients abreast of buyer interest and the pricing strategies that apply to today’s market – which are different from the boom years we’ve had for a decade or more now. Many agents have only known this boom market. So the message for them is that when you earn a living from professional fees, you have much less control over your income. If you're careful about listings and diversify your portfolio with rental properties, you’ll have a baseline of income that I think is really important.”
3. What’s selling in today’s market & why?
Marc Guay: “I still believe that there are varying degrees of value on any property in today's market. If a seller just needs money in the bank tomorrow and is willing to leave half a million on the table, then there’s an option out there for that. The other end of the spectrum is hiring a company like NurtureSource to get the highest rate of return that we can on a home. As the seller, you need to understand that and also desire this outcome. As an agent, if you can coach the seller and present them all the options – guiding them and explaining the why – oftentimes you can convince them to invest the time and money if that’s an option that fits for them.”
Eileen Townsend: “We just had a listing in Montclair that hit the market at a time when many more similarly sized homes were available than there have been for quite awhile. Before hitting the market, the seller questioned whether the timing was right. So I sat down with her and we looked at every comp in the area at the time. We looked through all the photos together. For each one, I asked her how she felt her home compared. We both agreed that her home looked really strong; the owners had done everything possible to present the home’s strengths. Buyers seemed to agree. NurtureSource can take a lot of credit for how well the market responded to her house.”
Ira Serkes: “Today’s buyers are a lot pickier and want turnkey properties where all they have to do is change the locks. They have more money than time and don't want to get involved in fixing up the house. The more attractive a home is, the more it drives up offers.
We know the price goes up by 4% to 5% per offer. So when you're talking about a median price of $1.5 to $2 million dollars, that translates to an increase of roughly $50,000 or more per offer. That’s why many of our clients hire NurtureSource to prep their homes for sale.”
4. How can NurtureSource help agents secure listings and be a resource for their clients?
Marc Guay: “In today’s market, you must have great recommendations, so I pull in NurtureSource as much as I can. The first step is to corral the seller's mind and educate them on the different levels of value. You have to present the options—what they can expect to get if they sell as-is versus the return if they go the NurtureSource route and invest in improvements. NurtureSource excels at collaborating with both the agent and the seller, and they’re great at keeping open lines of communication. They build rapport with the seller so we’re really working as a team. And the closer a seller follows our guidance, the better the results they get every time.”
Eileen Townsend: “We know that when you do a full renovation, you're going to get maximum value, but it may cost more than sellers are willing to invest to get there. And that's where the sellers get caught. But maybe there's a refresh instead of a full renovation that will do fine for a house. That’s why NurtureSource’s proposals are so helpful – they’re set up with line-by-line detail, and organized into an essentials column and upgrade column, so we have different levels to offer clients. Also, as agents, we want to work with companies known for quality work, quick turnaround, and varying levels of cost. NurtureSource delivers on all three of those things.”
Ira Serkes: “The weekly project status reports with descriptions and photos of work done that NurtureSource provides for us and our clients is far superior to what we’ve seen elsewhere, and that’s critical in today’s market. It’s the biggest intangible benefit of working with them.”
NurtureSource Is Here to Help
From tiered proposals to project management, NurtureSource offers the full range of services for prep-to-sell home renovations (download our services brochure here). Here’s how we can be a valuable resource for you and your clients.
2:1 ROI model
Collaboration with agents for optimal value creation
Fast & reliable home renovations
Financing – 0% interest COE loans for improvement costs
Fully licensed and insured contractors
Proposals delivered within one week
Premium design work
Staging & photography
Our team at NurtureSource is here to help your property stand out from the crowd. Schedule a call and let’s talk about what we can do for you.
