Don’t worry Tarrant County Tuesday readers, the Bow Tie Realtor will have a look in the 2019 crystal ball for some tasty prognostications before the ball drops.
The pendulum has swung. This was discussed earlier in Tarrant County Tuesday — the housing market in Tarrant County has become more of a buyer’s market than we have seen in many years.
Why A Buyer’s Market?
In real estate, a buyer’s market is when there is a surplus of homes available for sale. Homes generally take longer to sell, and prices tend to drop or only rise slightly.
There’s no exact reason why a seller’s market (like we’ve seen in Dallas-Fort Worth for past number of years) flips to a buyer’s market but here are a few common themes:
- Confidence of buyers is waning
- Interest rates start climbing or making it so financing is harder to obtain
- Inventory of homes on market increases
- Prices become too high for majority of buyers
- Overall economic conditions give prospective buyers reason to pause instead of purchasing
As discussed previously, it’s not necessarily a bad thing to have a buyer’s market. Ideally there would be exact equality with the pendulum being in the middle of a seller’s market and buyer’s market … but that rarely happens.
Keys To Success In 2019
The real estate market in Tarrant County will be just fine in 2019 if two things happen:
- Sellers realize it’s a buyer’s market
- Realtors do their job
Seems simple right? WRONG. I contend that 2019 will not be a good selling year if those two points don’t happen … and they need to happen quickly.
Sellers Can’t Live In The Past
If sellers don’t change their thought process when trying to sell their home, the buyer’s market will not only continue, but get stronger and stronger. For years sellers have been in control of the market — asking high prices, expecting multiple offers and above asking price contracts, anticipating to be on the market for only a few short days.
Except in rare instances, those days are over, and the sooner sellers realize this the better.
Stagnation and frustration will blossom in D/FW if sellers continue to demand high prices and remain inflexible at pricing the home correctly, reducing price, or being willing to accept less than what they think their home is worth.
REMEMBER: A home is only worth what someone is willing to pay you for it, not what you want them to pay for it.
Realtors Need To Do Their Jobs
In a seller’s market many Realtors have become lazy. Boom! (Yeah, I said it, and if you have an issue with it, my contact info is below). Hey — present company included here. Realtors have done a lackadaisical job (in some cases) of listing homes for sale and doing very little homework on value of the home, realistic sales price, and marketing.
It’s not because the Realtor isn’t any good, it’s because that’s what a seller’s market brings.
Realtors want listings. In a seller’s market, rarely is an agent going to push back when a seller says, “I want to sell my home for more than it’s worth.” Nope, not going to happen.
In a seller’s market, Realtors are afraid to push back on a seller in fear of losing the listing and having another agent get the listing and getting that exorbitant sales price.
Am I wrong? Simply look at all the homes currently on the market that are starting to drop prices by tens and hundreds of thousands of dollars. I’m not wrong.
Time To Get To Work
In 2019 homes will be sold. Money will be made by sellers and Realtors. Buyers will feel good about their purchases if real estate agents and sellers come to grips that the market has shifted.
Sellers: If a Realtor tells you to look at price per square foot to determine value, don’t hire them. If a Realtor doesn’t show you data and really dig into a good reason for the sales price of your home, don’t hire them. If a Realtor doesn’t explain the state of the market that we are experiencing and admit that it might take a while for your home to sell … Don’t. Hire. Them!
Realtors: If a seller says, “Well that house down the street sold for X so that’s what I want,” and you don’t push back — shame on you! If a seller wants to list their home for a higher, unrealistic price, and you don’t educate them for the better, shame on you. If a seller thinks their home should sell in a week when facts and figures show that it has been taking a lot longer than that, and you don’t walk them through the proven data — shame on you. Please stop paying dues and get out of the business.
The longer sellers and Realtors refuse to get real about the market, the longer it will be a buyer’s market.
A balanced market can happen in 2019. What are you prepared to do?
Well, that’s all from Tarrant County this week Dirty Readers. Thanks for reading and following and sharing! As always, if you have questions, comments or great ideas for a blog … hit me up!
Seth Fowler is a licensed Real Estate Sales Professional for Williams Trew Real Estate in Fort Worth, TX. Statements and opinions are his and his alone. Seth has been involved with the home sales and real estate industry in the Fort Worth area since 2004. He and his family have lived in the area for over 15 years. Seth also loves bowties! You can reach Seth at: 817.980.6636 or email@example.com. If you are looking for a Real Estate Sherpa to help you buy or sell … give Seth a call!