Read the blog below:
Anthony: The climate is changing. Can you feel that? It’s a little different. No, I don’t mean the weather. What I mean is the market’s changing. We see this every single year at this time and I talked about it the entire summer, but it’s here. I already saw signs of it in the last week and just yesterday I heard some agents talking about how they listed things over the last week and they didn’t get 10 offers. It wasn’t sold the minute it was listed. What does that mean? Well, it’s very, very good news for buyers. It’s very, very good news for agents working with buyers. It’s been very frustrating to be a realtor working with a buyer really since March. It’s been extremely competitive.
Now that this climate change is here, how do you deal with it? Well, number one, you have to be able to explain it to your buyers and you need to explain it to your buyers in advance. What I mean by ‘in advance’ is this. You do not wait until you find the property that they like and then, they say to you, “Why aren’t there five offers?” This is it. The economy’s crashing, isn’t it? This is officially it. Right here. Right now. It’s over. That’s what’s going on, right? No, no, no. You have to preempt that and you have to educate them. Now, hopefully you’ve already explained to buyers over the last month or two, that it would get better after labor day. I had talked to you about that.
I had talked to you about how, once we get past labor day, there’s less demand and there’s more supply. Every single year, the peak of housing inventory is the first week of October. That’s the highest point of the year for the total amount of homes for sale. We are right on track to have that happen again this year. I will be surprised if it doesn’t. In addition to that, buyer demand is decreased. There are less buyers out there than there were 60 or 90 days ago. Why? Because of seasonal impacts. People re-sign leases. The amount of buyers that got so frustrated with the way that things have been going and how competitive it was, is astronomical this year.
There were a lot of buyers in August that just said, “The hell with this. I’m signing a lease. I’m going to wait another year.” That has had an impact and that has– I’m sorry. That has an impact on decreasing buyer demand. In addition to that, 2,500 to say, 3,000 homes a week, are going under contract. You add up one month, that’s 10, 12,000 buyers that come out of the market because they find homes. Now that the climate has changed, not just the weather. You have to be able to explain this to your buyers because if you don’t, you’re going to run into buyers that are like, “I don’t know, maybe this is it. Maybe the whole market’s going to crash. Maybe it’s over. Maybe all the people that were very negative about what would happen with the market are going to be right.”
The buyers won’t take advantage of what is going to be the best time of 2020 to buy, which is the next 60 days. The best time period end of story, the best time of the year to buy is the next 60 days. Interest rates are still extremely low. Buyer demand is lower. Inventory is going to be higher. Once you get to about November 1st, it’s not a bad time to buy, but it’s not as good as the next 60 days. The peak is first week in October. Show your buyer graphs, show them charts, show them on-market snapshots, get them to understand this because if you don’t. They’re going to think the market’s falling apart and you’re going to have a buyer who, 60 days ago looked at you and said, “I’m so frustrated. I just can’t take this. Every house, we can’t get it.” Then, they’re going to look at you in a week and go, “Why isn’t there five offers? I don’t know if I want to make an offer.”
If that happens, it’s because you, you, you didn’t do a good enough job explaining what was to come. You have to do that. I’m going to share some links in the comments of this post. Take the damn links and use them. I’m going to put blogs in that we have put out over the years, that explain why fall is the best time to buy. That explain why winter is the best time to sell. If you look at those blogs and you actually take a minute to look at the graphs, you will see that inventory’s at its lowest in the winter. This year was weird because of COVID. It went lower in the spring. It doesn’t usually happen. Then, you’ll see how inventory is higher in the fall.
You have to see that. You have to know that. You have to understand that because you have to be able to explain it off the tip of your tongue like nothing. Not, “Oh, well, it’s because there’s less people interested and you are excited. You are mad about all the competition.” That’s not going to fly. They’re going to literally look at you and think, “This person’s trying to sell me.” You have to be able to show them. You have to be able to explain it and you must show them. I always say, “Don’t just tell people, show people.” I’m going to share some of these blogs in the comments and get on this. Get in touch with your buyers. Do not wait until they find their dream home. Tell them now. Send them an email. Send links. Send on-market snapshots. Explain to them so that they get it before they find that home.
Mark my words. You will get buyers in the next 60 days that’ll be like, “Well, I don’t know if I want to do it. Maybe the market’s crashing. Why isn’t there 15 people interested?” When a month ago, they were mad that 15 were interested. This is human behavior. The Warren Buffet theory of, ‘be greedy when everyone else is scared and be scared when everyone else is greedy’, does not apply to the average person. That’s why Warren Buffett is, I think, one of the richest men in the world. Not ‘the’ anymore, Bezos beat him. The point is, most people don’t think that way and you have to explain that.
That’s all my friends. Nice to see you all. Hello, Jill. Hello, Mark, Sandler, Jennifer, Dave, Crystal. Good morning. I’ll post the links. Hope you guys kill it today. I hope you crush it in real estate today. Thanks guys.