Brace Yourselves - Buyers Forced to Lower Price Range
Brace Yourselves - Buyers Forced to Lower Price Range
Full Video Transcript Below
[00:00:00] Well, good morning, real estate fans, Alice Lema here, broker John L. Scott and Southern Oregon with another edition of the weekly podcast. This week, we're going to talk about how unhappy the buyers are about being forced down into lower price points because of inflation and the interest rates. And they are just taking it out on everybody. So we're going to talk about that whole phenomenon because we need to talk about it. We need to talk to the buyers about what's going on in their head space and the wallet. We need to talk about the sellers. The sellers need to know to brace themselves.
[00:00:42] Okay. So before we get to that, let's give you a quick minute to subscribe to the channel. Thank you very much. Love those subscriptions really, really helps. Give us a, like, give us a thumbs up, send questions and comments you can text or call me personally. My number is 541-301-7980 if you want to talk privately, otherwise we're going to move right into the podcast, which is called brace ourselves.
[00:01:07] The buyers are being forced into lower price points and they are super duper grumpy. Okay. So here's, what's going on, whether you're buying or selling, you got to know. There's all these people out there that have just been dragged down into the next lower price points that they did not want to buy houses in.
[00:01:29] And they're super angry, upset, disappointed, frustrated, lots and lots of negative emotion. So sellers listen up, I'm going to talk to you first, be prepared for offers that are not so great and be prepared that these offers are going to be super duper nit-picky because think about who's coming into your house now.
[00:01:53] They were going to buy the next level up. Not I not saying your house is bad. Don't get me wrong. I'm just saying I'm out there in the combat zone on both sides. This is what's happening. These people are coming through the properties and they're so bent out of shape. They're writing lower offers. They're asking for everything sellers, you just gotta be ready for that.
[00:02:13] They're nitpicky about repairs. They want more closing costs. They want more move out perks or move in perks. Like they're asking for professional cleanings, which actually I'm a big fan of somebody having the property professionally cleaned, but that's a different podcast. And then they're not being as accommodating of the sellers.
[00:02:30] So changing market, this is what happens. So sellers be prepared, also brace yourself that the, the offers that you're getting are reflective of what the buyers think the value is. So eight weeks ago, you might've been up like at 400 and everybody was looking at your house. And now all of a sudden, not only people, maybe not looking at your house, they're not looking at it so much.
[00:02:57] The offers you're getting are more like 3 75 because you know what, that's the value the market is placing on your place. So you need to brace yourself. If you're selling right now, your offers are going to be lower possibly. And I just don't want you to think what up and. But you gotta remember the mindset again.
[00:03:13] The people going through your property, they were just looking at a much newer, nicer, more remodeled, whatever. Whatever, whatever then yours. And so just be ready.
[00:03:25] Number three, sellers, please, please do a home inspection upfront. You don't want to lose a qualified buyer in the middle of escrow.
[00:03:36] Little nifty thing in, in the repair report. So just do that. So a, you know what it is, right? And you can take care of it ahead of time. You want to start putting your best foot forward in that department now that the market's changed and the buyers really appreciate that you give them access to a home inspection that you paid for and provided as disclosure that makes them feel better.
[00:04:02] It takes a little bit of the sting out of, you know, they're having to buy what they consider under what they were going to have just a couple months ago. Okay. And then sellers, we just understand you wanted to sell your house. You wanted to make another lifestyle. So the market's different. It's not completely in your favor anymore.
[00:04:22] So just be reasonable, be business like with your approach to the buyers. Okay. Now buyers, I know it stinks. It sucks, but just prepare yourself. You're going to be looking under what you were looking at before. Price wise you're going to be, well, yeah, price wise too, but you're going to be looking at older houses.
[00:04:45] They're going to need more repair. They may not be updated and they may not be in the area you originally were looking at just a few months ago and yes, I know it's an owie. I'm sorry, but pull it together because it's going to be okay. You're going to get a house. All right. So that's number one. Just acknowledge that's what you're going to be doing.
[00:05:05] Okay. Number two, stay in constant contact with your lender because you know what, the rates are not done going up. Can you believe that the rates are not done going up? So you need to be in constant contact with your lender. So you make sure you are approved every time you go out looking for houses. You just need, you just need to know that that is still the case.
[00:05:28] If you have a lender that is not responding to you. And your need to be pre-qualified again, updated qualification possibly more than once. If they're not responsive, if they're not, you know, thinking about getting a lender that is because this is emergency mode.
[00:05:45] We're trying to get you a house under really weird conditions in the world. And we need a team player on the lender side that's going to accommodate the fuss that's going on in the world. Okay. So stay in constant contact with your lender. If you're not getting the kind of service you need in this emergency situation. Well, what Alice calls an emergency situation, then consider working with somebody else.
[00:06:08] Number three, submit reasonable offers. So yes, you're going to be looking at houses that are possibly not as nice as what you were looking for before. And if you don't have a multiple offer situation, then go ahead and Dicker a little.
[00:06:22] But if you continue to find yourself in multiple offers situations, then you're going to have to make more sacrifices than, than you were cause you want to stay competitive. Okay, because you want to be reasonable and it's probably not reasonable to offer full price in some situations like it was a couple months ago, so that's true.
[00:06:42] We'll give you that. It's okay. But at the same time, understand the house that you're bidding on, and how much market activity it's getting. So one of the strategies is pick things that have been on the market longer. Pick things that are not updated, that you can update yourself later, stuff like that, but be reasonable.
[00:07:01] And again, you guys try to be business like as well, even though this is really hard. I know. I know. And I'm sorry, but we're going to get through it. Okay. And then lastly, buyers understand you're still going to buy a house. It's just not the house you were going to get a few months ago. It's not going to be in the area that you were in.
[00:07:21] It may not be as new. It may not be as nice. It might not be as updated, but you're going to get something. And that's the goal here. So two, two things cut yourself, some emotional and expectational slack. If you're on the buyer's site, give yourself some kudos for hanging in there. Because that's really the important thing.
[00:07:40] Remember the original goal here was to get a house, do not lose focus on that, especially if the rates keep going up. This is the best time ever again, even if you're getting slightly less house than you thought you were even eight weeks ago, don't lose focus. You're going to buy a house. Okay. Lots and lots of stuff going on.
[00:08:00] I know it's hard. It's hard on everybody. This is what markets do when you're in the middle of markets changing. This is, this is the hard crunchy part, but it's going to be okay. We're still selling houses. We're still buying houses. We're all getting through it. We're getting through it together and we're getting through it with education.
[00:08:18] And realistic expectations. Okay. So having said all that reach out to me, I'm around all weekend. I'm here to help. I'm great with investments, listings, buying riverfront real property. First time home buyers, up sizers. Downsizers this. This is what I do. And yeah, feel free to give me a call. Give me a text by 541-301-7980.
[00:08:42] Okay. And remember brace yourself because it's quite, it's quite hairy out there, but we're getting it done. All right. So don't lose faith. Talk to you next week. Bye now.