These were my notes that expand on the previous blog post.
This is the Market Lull.
It’ll go for at least another month or two and for many it might last until January.
Hardly anyone knows what to do. Buyers don’t mind waiting longer – they keep hoping that something good would happen. Same with sellers. Agents who have only known a strong seller’s market (last 15 years) are getting anxious though.
Reducing the price by 5% is the minimum to impress buyers.
Price Reductions – When They Reduce The Price Sends A Signal
Price reduction in first month: No showings or offers and seller is motivated (and maybe panicked) and/or the listing agent is great at reading the room….especially if it’s a 5% drop.
Price reduction in second month: Normal, and needs to be 5% just to keep up.
Wait 3-4 months for first price reduction: Seller just starting to get it, but buyers have been ignoring the listing for 2-3 months. Too late to be able to sell this year.
No reductions: Seller doesn’t care and neither does the agent, or the agent is weak. By now, anything might happen with them so wake them up with an offer.
Rule of thumb: in the buyer’s mind, the value is going down about 1% per week. After 10 weeks, sellers should reduce drastically or quit. All you will get is lowballs.
How to identify agents to lowball who don’t have a sales skill set and need a deal to fall in their lap. They ask: “Do you have any questions?”
Buyers can ask this question at open houses: “Do you think it’s worth it?” How the agent answers that will tell you everything about your chances of getting a deal.
A decent answer: Yes, I do think it’s worth it. In fact, if I can prove to you that it is worth it, would you buy it?