Real Estate Has Really Changed!

Real Estate Has Really Changed!

Real estate works a lot differently than it used to when I first got my license back in 1990. Most things today’s buyers, sellers and agents take for granted or consider “normal” weren’t even on the radar back then. Given the speed of the process these days, it’s hard to imagine anyone who bought or sold a home twenty or thirty years ago, feeling comfortable wading into the deep end of the market without some significant reorientation and guidance.  

Here’s what’s changed:

Extensive remodeling? Doing flip-style makeovers PRIOR to putting a home on the market? That would have been considered CRAZY back then. A new coat of paint and a little landscaping for curb appeal was usually deemed sufficient.

Staging? That wasn’t a “thing” in 1990. Occasionally a high-end estate home got dialed in with a few extra furniture pieces and some art work but that was about it. Today, almost every listing gets staged before it hits the MLS.

Upfront Inspections? Nah. Real estate was still in its buyer beware phase and buyers always did their own inspections after escrow was open. Subsequent renegotiations were also the norm.

Zillow? Redfin? Realtor.com? Nah, worldwide automated marketing platforms didn’t exist before the internet. No digital photos, drones, virtual tours or google earth. No algorithms offering school test scores or directions to local surf spots and the nearest Starbucks.

Multiple Offers? We didn’t even see them in Santa Cruz until the late 1990s and they weren’t common until the mid 2000s. 30% Overbids? Nah. Maybe an occasional offer $5k or $10k above list but not 5% or 10% (let alone 30%)! These days, sellers consider it a failure when their house only sells for full price.

Inventory? There were four or five times as many active listings to choose from in the old days. 

Number of Sales? They’ve shrunk dramatically over the last thirty years. This year we’ve averaged around 100 single family home sales per month – a far cry from the 1990s.

Length of Escrow? The norm used to be 45-60 days. Now it’s 15-25 days. All Cash Offers? Rare back then. Now more than a third of all offers are cash. 30 year fixed rate loans? Not in the late 80s or 90s. Docusign Signatures? No. Digital Disclosure Platforms? No. Email and Texting? No and No.

If you are thinking about selling in the next few years and are feeling a little unclear about how the market actually works these days, give me a call. I’ll be starting my annual run of free seller “reorientation” talks in the next few months and I’m happy to reserve a seat for you. Call 831-818-1431 or email getreal@sereno.com.