Great Housing Expectations

We all know that over the past few years, sellers have had a very hard time coming to grips with the fact that their home has probably lost considerable value. But what are buyer’s expectations like in our current market? Do they really think that they will find a luxury estate in a posh neighborhood for $50K? The answer is YES.

However, while they’re going to get a better deal than 3-5 years ago, there are limits as to what your dollar will buy you. The old adage “you get what you pay for” still applies.

What can agents do to better prepare and educate their buyers about the housing market in metro Atlanta?

• Learn current trends within their service areas. Last Sunday’s Atlanta Journal-Constitution had an article on the front page that detailed the sales rate and price range ratios done by zip code in metro Atlanta and the week prior listed the top schools. Trends such as these help to explain why a home might be higher priced rather than using broad economic conditions as an indicator. Hang on to these articles to help educate customers.
• As you narrow down communities, show the customer all the current trends, as well as CMA data to point out pricing in each community.
• Explain neighborhood differences that would show why a similar house in 30062 might have a higher price point than one in 30127. Both zip codes are in Cobb County but location, school test scores, foreclosure rates and sales data might mean making the most suitable offer that fits the customer’s lifestyle and budget.
• Educate your customer about how banks, foreclosure companies and relocation companies price their inventory to sell and that their bottom line does not have as much wiggle room as a home with an owner living in the property. We are seeing bidding wars on all of these types of properties in the past few months.
• Another trend affecting how much house a buyer can get for their money is that many transferring sellers may opt to rent if they can not get a reasonable price for their current home and will rent in the new location. They’re waiting for an economic recovery and are hoping to take less of a loss on their property. There is not much dealing a prospective buyer can do here.
• Don’t forget to warn the prospective buyers that sometimes what looks like a great bargain may not be in their best interest to buy. The best way to make sure you don’t end up sorry is to thoroughly investigate the property, neighborhood and community. Is it a diamond in the ruff or fool’s gold? I can’t say enough about how market trends may affect the future of any property in the marketplace.

The change in the pricing of homes is a weekly occurrence. Keeping up with housing trends is vital to customers getting the most house for their dollar without regretting a decision later down the road.

Do you have any other tips to educate buyers about the market?

By Dana Eskridge