So..... How's the Market?
The conversation always seems to migrate over to this question every time I meet someone.
Them: So, what do you do for a living?
Me: I’m a Realtor®.
Them: Oh…….So…..um….how’s the market?
Maybe I’ll fumble around with some statistics, or tell them about my latest listing that I just sold. Whatever it is I say just doesn’t seem to be satisfactory in summing up anything in a qualitative or quantitative way. But fear not! The National Association of Realtors® has just released its annual study. (The study was released on January 17, 2006. I got these statistics from the article they published on www.realtor.org .) Here are a few highlights.
90% of all home buyers use a real estate agent when they are looking for a home. Buyers understand that when it comes to finding a house, Realtors® are the people to ask.
77% of all buyers use the Internet when looking for a home. It might seem like these two statistics work against each other. Not so, buyers look online to see listings, they call a real estate agent when they are ready to buy. So, the way to sell homes is to have a real estate agent with a strong web presence. That way, your home is exposed to the greatest number of buyers. By the way, my broker just spent about $80,000 on our new site, take a look at www.timhall.us ; you’ll be impressed.
The typical buyer looked for a home for about two months, walked through nine houses, and moved twelve miles from their previous residence. That means that an average showing appointment has an11% probability rate of becoming a sale. Also, local advertising is key in getting your home sold. So, make sure that your home is being advertised locally, and make it easy for buyers to come see it. If you have had a lot of showings (over 10) then, it must be time to examine why it hasn’t sold yet. Look at what marketing is being done (we spend $3.2 million annually, all locally), look at your pricing, look around your house. If you were a buyer, would you buy what you see for the price you are asking?
13% of the market is For Sale by Owner. That seems like a lot, doesn’t it? Well, read on. 39% of those transactions were what we call “closely held.” That means that they were sales that were between people that knew each other. So, if you still have that red and white sign that you bought down at your local hardware store in your yard after you have talked to your neighbors, cousins, aunts, uncles, brothers, sisters, kids, and bridge partners then you are not in that category. That leaves 6.6% of the market as real FSBO.
Oh, one more thing about FSBO. The average sale price of that type of transaction was 16% less than transactions done with the help of a real estate agent. I only charge 6%; that means that when you use me, you put 10% more into your pocket at the closing. If the phone number is getting hard to read on that sign you stuck in the yard, do yourself a favor and call me. You are not saving any money; all you are doing is giving yourself a headache and throwing money down the drain. By the way, that 10% more that I’m putting in your pocket is 10% more that you will get, not 10% more than you think you’ll get.
One more statistic for now….
44% of buyers and 43% of sellers chose the real estate agent they used on the basis of a personal referral. I know this is a little self serving, but, if you appreciate the knowledge and expertise that I bring, tell a friend. I have been doing this business for over five years now, and I truly do appreciate it when you send me your friends and family. That is the greatest quality service award that I can earn.
I hope you find this helpful. If you would like more information about the survey, or about more local market information, please don’t hesitate to call me at any time.
Them: So, what do you do for a living?
Me: I’m a Realtor®.
Them: Oh…….So…..um….how’s the market?
Maybe I’ll fumble around with some statistics, or tell them about my latest listing that I just sold. Whatever it is I say just doesn’t seem to be satisfactory in summing up anything in a qualitative or quantitative way. But fear not! The National Association of Realtors® has just released its annual study. (The study was released on January 17, 2006. I got these statistics from the article they published on www.realtor.org .) Here are a few highlights.
90% of all home buyers use a real estate agent when they are looking for a home. Buyers understand that when it comes to finding a house, Realtors® are the people to ask.
77% of all buyers use the Internet when looking for a home. It might seem like these two statistics work against each other. Not so, buyers look online to see listings, they call a real estate agent when they are ready to buy. So, the way to sell homes is to have a real estate agent with a strong web presence. That way, your home is exposed to the greatest number of buyers. By the way, my broker just spent about $80,000 on our new site, take a look at www.timhall.us ; you’ll be impressed.
The typical buyer looked for a home for about two months, walked through nine houses, and moved twelve miles from their previous residence. That means that an average showing appointment has an11% probability rate of becoming a sale. Also, local advertising is key in getting your home sold. So, make sure that your home is being advertised locally, and make it easy for buyers to come see it. If you have had a lot of showings (over 10) then, it must be time to examine why it hasn’t sold yet. Look at what marketing is being done (we spend $3.2 million annually, all locally), look at your pricing, look around your house. If you were a buyer, would you buy what you see for the price you are asking?
13% of the market is For Sale by Owner. That seems like a lot, doesn’t it? Well, read on. 39% of those transactions were what we call “closely held.” That means that they were sales that were between people that knew each other. So, if you still have that red and white sign that you bought down at your local hardware store in your yard after you have talked to your neighbors, cousins, aunts, uncles, brothers, sisters, kids, and bridge partners then you are not in that category. That leaves 6.6% of the market as real FSBO.
Oh, one more thing about FSBO. The average sale price of that type of transaction was 16% less than transactions done with the help of a real estate agent. I only charge 6%; that means that when you use me, you put 10% more into your pocket at the closing. If the phone number is getting hard to read on that sign you stuck in the yard, do yourself a favor and call me. You are not saving any money; all you are doing is giving yourself a headache and throwing money down the drain. By the way, that 10% more that I’m putting in your pocket is 10% more that you will get, not 10% more than you think you’ll get.
One more statistic for now….
44% of buyers and 43% of sellers chose the real estate agent they used on the basis of a personal referral. I know this is a little self serving, but, if you appreciate the knowledge and expertise that I bring, tell a friend. I have been doing this business for over five years now, and I truly do appreciate it when you send me your friends and family. That is the greatest quality service award that I can earn.
I hope you find this helpful. If you would like more information about the survey, or about more local market information, please don’t hesitate to call me at any time.
posted by Tim Hall | Monday, September 18, 2006
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