The real estate “inventory is exhausted” basically means that what is available is not of interest to buyers.
Talking with a few Agents yesterday this statement came up regarding any real estate market slump. There is little inventory, although there are plenty of houses listed, or what is available is exhausted.
“The real estate inventory that is available has been exhausted;” that statement resonated in my mind. I thought; if inventory is exhausted, but the properties are still sitting on the market, what’s wrong with this picture? Flipping through the MLS reviewing some properties that have been lingering didn’t take long to realize what the problem was.
Real estate inventory and the bigger picture
When reviewing the inventory that is currently available, many of the properties have lingered on the market beyond three months. Now they are marked down between $5000 upward of $20,000. That hurts the seller’s equity. Markdowns are a good way though to try and generate interest. In reviewing the listings I noticed a few things. What stood out were the pictures themselves.
Many listing pictures were taken with cellphones. A professional picture stands out and makes the listing look good. A home with dated decor, looks tired, not very clean, or just messy, is not desirable.
This is the first impression buyers receive of the property. The presentation of the properties still on the market are not the best representation. A buyer is looking for a lifestyle that entices them. They want the next property to be better than what they currently have, or at least equal.
What can a seller do?
1. Be objective
If your home has been on the market beyond 90 days it is time to really reevaluate your original plan to sell. Find out what the objections from buyers have been this far. Is it price, is it style, etc. listen to the objectives and take action.
2. Talk to your Agent
They need to be honest about the feedback. Be open to the suggestions and be willing to act upon them. If the Agent feels they can not be in the position to evaluate your property, have them hire a professional stager to review your property. A professional stager will be able to asses your property with you and give you actionable objectives to get your house to be one that buyers desire.
3. Consider your ROI
Your return on investment is important. I hear it all the time; the seller refuses to invest any money in the house because they are selling. Your house is a product on the market now. It should appeal to your market of buyers. A professional home stager will help you evaluate where to invest money to enable you to gain a return from the investment. It does not have to cost a lot of money to create a fantastic space.
4. Pricing
Your house is a castle worth millions, but be realistic here. Buyers are savvy. Buyers research to know current values of properties. What is your current price point? Is your price properly positioned? If your agent gives you comparable review them. If you never saw comparable house for sale, ask for them. These are a great indicator as to what buyers are willing to spend. Buyers expect value, and want to see a lifestyle.
5. Photography
The pictures online are your first impression. Did the Agent post-professional photographs of your home? Do the pictures show the spaciousness and the architectural details that attract a buyer? If there are changes or improvements to the rooms after you had a professional staging consultation, did the agent capture the new and improved look? Evaluate your home in buyers’ eyes. Remember pictures show all. Everything in the picture of your home should convey value and the houses’ fullest potential.
When selling you do not want to be a property that is in the “exhausted inventory” category. Ensure your house is in the “consider category”. A house that stands out in the buyers’ mind, one that buyers are calling to see. A well packaged house presents well to buyers.
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