Today’s agents have had to shift messaging away from the price of the home to helping buyers find a home that has an affordable payment. “I am telling buyers, ‘Let’s find the home that still has an affordable payment. Rates will go back down, and when they do, you will be positioned to refinance,” said an Orlando, Florida-based Keller Williams sales associate, in RealTrends Q4 2022 AgentPulse survey.
RealTrends AgentPulse requests quarterly surveys from some 19,000+ real estate agents around the nation on market trends, opportunities and challenges. Of the 202 completed surveys, 21% were from the Northeast, 15% were from the Southeast, 28% from the Southwest, 23% from the Midwest, and 12% from the Northwest.
“Marry the house; date the rate,” said a Coldwell Banker agent in Pacific Palisades, California. It’s a familiar refrain as interest rates rise. And, while 61% of agents surveyed expect home sales (61%) and home prices (55%) to drop more than 5% for the remainder of 2022, only 34% felt pessimistic about the market, up from 19% in the Q3 2022 AgentPulse. Most (43%) felt neutral and 23%, down from 36% in Q3, felt optimistic still.
Data is king
According to the survey, agents are overwhelming using market data to help sellers price properties and inform both buyers and sellers about where the bright spots are. “I look at all active homes and pending homes,” said a Palo Alto, California-based Compass sales associate. “Sold homes are too old to look at in a changing market.”
Most of those surveyed are using their local MLS for this data, but other sources include ReMine, state association data, Redfin, Zillow, Realtors Property Resource (RPR) and more so they can give buyers and sellers a comprehensive and comparative view of sales and pricing. “I use solds from the last 12 months within a one-mile radius from four different sources — RPR, Redfin, Zestimate and the MLS,” according to sales associate with an independent firm in Flagler Beach, Florida.
“We look at on-the-market inventory in a much broader area as inventory is still low,” said a sales associate with Ebby Halliday Realtors in Dallas, Texas. “Appraisers are starting to discount sales earlier in the year that were high.” His advice, “Do not overprice.”
New challenges arise
When asked what their biggest challenges are, some 46% said interest rates and inflation are at the top of their list, this is up from 31% last quarter. Next was low inventory, which 19% of respondents selected as a top challenge.
Not registering on past AgentPulse reports was reluctant buyers and sellers, which in Q4 2022 was listed as the No. 3 challenge by respondent. Rounding out the top five are getting listings and mindset.
Today’s market requires agents to learn new techniques, consistently prospect and find innovative ways to get buyers off the fence and sellers to list.
When asked about proven strategies for handling price reductions, agents aren’t waiting very long to recommend them. “If I don’t have any offers after 10 showings or 10 days on the market, I reduce the price,” said an agent with an independent brokerage in the Northeast. Another agent, who works with luxury buyers in the Northeast, said that they, “Re-evaluate our position in the market after the first two weeks a home in on the market.”
RealTrends AgentPulse is a forward-looking survey of real estate agents and team leaders.
If you have questions about AgentPulse or want to be added to the list, email RealTrends Editorial Director Tracey Velt at tracey@hwmedia.com.
