- Tom BrezsnyThe Market is Telling the Truth
Had enough of me rambling on about all those tall buildings that are going up around town and all the new housing that’s challenging Santa Cruz’ 50 year commitment to slow growth? Let’s move on to a new topic…for now.
Sellers have selective memories and fluid understandings about how the market actually works. When things are going well, how the market works seems blatantly obvious. When the cycle shifts and starts to slow, the market can morph into a mystery that some sellers just can’t seem to fathom.
Do market dynamics really function differently in different markets? My own perspective is that the market is always an extremely honest feedback system. It tells the truth and delivers a consistent message no matter what kind of market you’re in.
You just have to be willing to hear what it is saying! And since expectations arise in the non-rational regions of the brain and results are usually interpreted through the lens of emotion, there are lots of opportunities for major disconnects.
To help sellers adjust to the shift that’s going on in the market right now, here’s one fundamental truth about real estate that everyone should hold to be-evident: At the right price, everything sells. (Yes, it really is that simple.) If you are one of those Sellers who’s struggling to hear what the market is saying, here are a few ways it is talking to you:
Open Houses: How many people are attending your open houses? 10? 50? 100? If you don’t know, find out. If you aren’t having open houses, you’re blowing it. The primary audience for Santa Cruz hails from over the hill and weekends is when the buyers come.
Showings: Is your house being shown independently outside of those opens? How many separate showings have you had? Have some Agents brought the same clients through more than once?
Days on Market: Has your listing been on the market for a few weeks? Or for more than 30 days? If you’ve already reduced your price, how many days have gone by since you dropped it?
Feedback: What are buyers saying about your house? What recurring observations are being voiced? If you aren’t hearing the feedback from agents and buyers, your agent isn’t doing their job.
Request for Reports & Disclosures: How many buyers’ agents have actually asked to see the collection of reports and disclosures your agent worked so hard to help you compile? Find out.
Offers: Have you had offers? Even low ones? Hopefully you know the answer.
Next Week: How to interpret the truth about your price, after you’ve gathered all the feedback.
