What Homebuyers and Sellers Are Worried About Right Now – Fall 2024 Edition
As a real estate agent, I have 20+ daily conversations with homebuyers and sellers. And right now, with the fall season here and an election on the horizon, the same concerns keep coming up—whether you're looking to buy or sell a home. So, let's talk about what’s really on everyone’s mind. Homebuyers Are Asking: “Can I Afford a House Right Now?” The biggest thing buyers are worried about? Interest rates. Even though we have recently seen a rate cut, it’s not enough. It’s not just about the home price anymore—it's the monthly payment. In many markets, homeowners insurance costs are as critical a factor as interest rates. Another issue that keeps coming up is housing affordability. Prices haven’t come down enough to make a big difference. The struggle to find affordable homes is real, especially with limited inventory. There is good new though.... When I sit down with buyers and explain the many options available to them, I love seeing their faces light up with excitement! The thing is there are many down payment assistance programs available across the United States. For instance, in my market, Oklahoma City, the OCHFA, and my buddy who is the executive director, can get you a killer deal with a low rate, and a downpayment assistance amount you don’t have to pay back! There are many programs, offered by state housing finance agencies, local governments, and non-profit organizations, that provide grants and low-interest loans to help cover down payments and closing costs. Futhermore, to the surprise of many of my clients, these resources are NOT just for low income families. Folks with incomes over $90k or more can use these resources for home purchases for properties in the $500k price range! Who knew? There are other programs through many lenders like Bank of America and Rocket Mortgage's ONE+ program, which allows for a 1% down payment with a 2% grant from the lender. By combining these assistance programs with affordable mortgage options and timing their purchase strategically, buyers can make homeownership financially feasible. And, with many of these programs you don’t even have to be a first-time homebuyer! Isn't it nice hearing something positive about the real estate market? Okay, on the flip side, we know there are more factors affecting homeownership. The fact is many people face an overall sense of economic uncertainty. We’re heading into an election year, and no one knows exactly what that’ll mean for the economy. With talk of inflation, job security, and a possible recession still hanging around, buyers are being extra cautious. So, in light of these factors, when I counsel a potential homebuyer we look at their entire situation. Now, more than ever, other factors have to be considered. For instance, I was talking with a young couple the other day, and the husband was being transferred out of town. His employer was offering incentives to purchase a home. After running the numbers and looking at the situation from a bird’s eye, it would be more cost-effective for the couple to relocate, use the company’s incentives, and buy in the new market. Considering the cost of maintaining two households, even for six months, and the toll of living separately, it was a wiser choice to buy, even with the higher rates and home prices. Sellers Are Saying: “Is It Still a Good Time to Sell?” I’m hearing from sellers: “Is it the right time to put my home on the market?” With interest rates where they are, some sellers worry there aren’t as many buyers willing to pay top dollar for their home. They’re concerned that the buyer pool has shrunk and their home might sit longer than expected. Plus, sellers that are locked into a lower rate, even though life factors require a move, can’t seem to justify a new mortgage at a higher rate. Home values are another big concern. Sellers know the market has cooled from its peak, so they wonder if they’ve missed the window to get the best price. Now that values are dropping there’s a fear of listing at the wrong time. And, just like buyers, sellers are keeping a close eye on the election. They’re worried about the economy, social unrest, and potential changes in tax laws, property regulations, or housing policies that might come with new leadership. If things change drastically, it could impact the housing market, and sellers want to ensure they’re not caught off guard. Every day, I talk to sellers, and many have had their homes on the market and have given up. Most of the time, when talking with sellers I discover common themes. Many have unrealistic expectations, put in little effort in marketing their homes, and don't have a stragety in place. These are the primary reasons they were unsuccessful in selling or in getting the price they wanted. The solution, sellers have to be flexible, especially now and in the coming months; staging, high-quality photos, and strategic marketing tactics are essential. My biggest recommendation is to have a plan and hire a good agent. So, What’s the Takeaway? Whether you’re buying or selling this fall, the real estate market is definitely in a more uncertain place than it was a year ago. But with the right strategy and an understanding of where things are headed, plenty of opportunities remain. If you’re a buyer, stay patient and keep an eye on the numbers. There are still good deals out there—you just have to be ready to act when the right one comes along. And if you’re selling, now is still a great time to list your home, especially if you price it right and prepare for a slightly longer timeline. Whether you're buying or selling, my job is to help you navigate these uncertain waters so you can feel confident in your decision. Let’s grab coffee soon, and I’ll explain what’s happening in the real estate market right now. We can make a plan together, or not. At least you will come away with valuable information that will help you when you decide to buy or sell. #RealEstate2024 #HomeBuyingTips #HomeSellingGuide #FallRealEstateMarket #OklahomaCityHomes #HousingMarket2024 #ElectionYearRealEstate #InterestRates
Boosting Home Sales: How Price Bracketing Increases Market Visibility
In the intricate world of real estate, pricing a property is both an art and a science. The strategy behind how a home is priced can significantly impact its market exposure, time on the market, and, ultimately, the seller's bottom line. Understanding price bracketing and implementing effective pricing strategies are essential skills for any savvy real estate professional. As an experienced agent, I have seen firsthand the profound effects these strategies can have on a property’s market performance. Understanding Buyer Behavior and Search Patterns Buyers typically search for homes online using whole-number price brackets. Websites like Zillow, MLS, and others utilize drop-down menus with price ranges often in $25,000 to $50,000 increments. Common search brackets might be $200,000 - $250,000 or $250,000 - $300,000. Rarely does a buyer or agent input search criteria that include prices like $199,900 or $224,900. Therefore, homes priced just below these brackets may miss out on appearing in broader search results, reducing their visibility to potential buyers. The Power of Double Exposure Pricing a home at the top or bottom of these search brackets can double its exposure. For instance, a home priced at $200,000 will appear in the $150,000 - $200,000 and the $200,000 - $250,000 search ranges. This strategic placement means that the property will be visible to buyers searching within two different brackets, doubling the number of potential buyers who see the listing. The Pitfalls of Near-Threshold Pricing A common mistake is pricing a home just below a bracket threshold, such as $199,000 instead of $200,000. While this approach might seem appealing due to its psychological pricing effect (similar to retail marketing’s $19.99 strategy), it is counterproductive in the real estate market. A home priced at $199,000 only appears in searches up to $200,000, missing out on the entire next bracket of $200,000 - $250,000. This significantly reduces the home’s visibility and potential buyer pool. Strategic Pricing for Optimal Results To maximize a property’s market exposure and attract a larger pool of potential buyers, it is crucial to price within the correct brackets. For example, pricing a home at $250,000 places it within the $200,000 - $250,000 and $250,000 - $300,000 search ranges. This dual exposure can lead to more views, more showings, and, ultimately, more offers. Additionally, considering a market’s list-to-sale price ratio is important. A slight increase to the next bracket can be justified if it aligns with local market conditions and buyer expectations. The Role of Professional Presentation Beyond strategic pricing, the presentation of the property is equally important. Professional photos, staging, and direct marketing efforts such as reverse prospecting can significantly enhance a property’s appeal. High-quality images and well-staged homes create a strong first impression, encouraging buyers to schedule showings. Direct marketing to other agents ensures that the property is top of mind for those representing potential buyers. Educating Sellers on Pricing Strategy As real estate professionals, we are responsible for educating sellers on effective pricing strategies. This includes explaining the importance of price bracketing and the potential drawbacks of pricing just below major thresholds. Sellers need to understand that correct pricing is not just about attracting attention but about positioning their property in the market to achieve the best possible outcome in terms of both price and time on the market. Conclusion In conclusion, mastering price bracketing and strategic pricing is essential for any real estate professional aiming to maximize their seller's outcomes. By understanding buyer search behaviors and the importance of whole-number brackets, we can position properties for optimal exposure. This, combined with professional presentation and targeted marketing efforts, ensures we can attract the maximum number of potential buyers, leading to quicker sales and higher sales. As experienced agents, it is our duty to leverage these strategies to benefit our clients, ensuring their properties achieve the best possible market performance.
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