Key Details:
- According to a Zillow survey, the biggest buyer misconception is that home prices will fall significantly.
- Sellers expect a high number of offers, quick sales, and above asking prices.
Today’s market is drastically different than the one from the start of the year. Like @thebrokeagent says, it makes for a weird time in real estate.
With all the changes taking place, it’s difficult for consumers to separate misinformed headlines from what’s actually happening.
A new Zillow survey polled real estate agents to find out the biggest misconceptions buyers and sellers have about today’s market. Here’s a breakdown so you know what issues to address and what information you need to share.
Buyers’ Biggest Misconceptions in Today’s Market
For those looking to buy in the near future, the biggest misconception is that homes will suddenly become more affordable.
Nearly half of agents surveyed (46%) say aspiring home buyers believe home prices will fall significantly, and 35% say buyers think it’s best to wait until high mortgage rates come down.
While buyers remain hopeful, it’s not likely there will be a drop in home values—at least not significantly, according to forecasts from housing economists. As far as mortgage rates, they may continue to rise before they come down.
Sellers’ Biggest Misconceptions in Today’s Market
As buyers look to the future, hoping for lower monthly payments, sellers are holding on to the past.
According to agents polled, sellers expect:
- Multiple offers on their home (81%)
- A price above market value (79%)
- A quick sale (79%)
- No need to cut their listing price (74%)
As time on market continues to increase, and with buyers unable to afford what they could last year, sellers unwilling to adjust their expectations will be left disappointed.
Manage Consumer Expectations
As you work with buyers and sellers, it’s critical to unravel the misconceptions they carry and help them form expectations that will help them be successful in today’s market.
When working with buyers, 44% of agents polled in Zillow’s survey stated the most important thing for first-time buyers to do is to line up financing. Make sure they understand what type of monthly payment they can afford, and talk to them about compromises they are willing to make to stick to their budget.
The good news for buyers is there is more time to consider their options and more negotiating power.
When working with sellers, 73% of agents say pricing a home correctly is the most important strategy in today’s market. While days on market continues to increase nationwide, properties that are competitively priced are going under contract at a much faster rate.
It’s up to you to show sellers what their property can go for today—and help them understand why they can’t compare it to their neighbor’s sale in March.
