You can’t control rates, inventory, and affordability, but you can help sellers navigate these realities, writes Jimmy Burgess.
One of the biggest opportunities in today’s market has little to do with marketing, negotiation, or even pricing. It has everything to do with education.
As inventory increases and homes spend more time on the market, many sellers are becoming frustrated because the market isn’t moving as expected. This creates a great opportunity for agents willing to step in as trusted advisors rather than just listing agents.
Recently, I sat down with Keeping Current Matters’ David Childers to discuss what’s happening across the country and, more importantly, how agents can use that information to better educate buyers and sellers. One thing became clear through our conversation. That means the agent who can best communicate with the market will win the most business.
Sellers are frustrated because expectations aren’t keeping up with reality
David Childers | Keeping Things Current
Mr. Childers opened the conversation by saying, “One of the biggest stories in the market today is the increasing number of homeowners who are choosing to take their homes off the market rather than selling them. At first glance, that may seem like a problem. In reality, it’s just a symptom.”
“The fundamental problem is that many sellers are still expecting the same results they saw during the pandemic housing boom. They expect multiple offers, bidding wars, and homes selling within days. Today’s market is very different.”
He also said it’s a great opportunity to show sellers what’s going on instead of assuming they understand what’s going on. Simple visuals often communicate much more effectively than lengthy explanations.
The first slide he shared showed the percentage of sellers who chose to delist their homes. “This shows that some sellers are frustrated by not being able to sell their homes and deciding to give up and take their homes off the market,” he explained.
Inventory has changed, and so has the conversation.
The following graph that Mr. Childers shared really shows how dramatically inventory has changed over the past few years.
“While inventory remains below long-term historical norms in many markets, buyers have significantly more choice than just a few years ago. More choice naturally means more competition for sellers, which is why today’s listing presentations must look different than they did in 2021,” Childers said.
He suggested that instead of promising a quick sale, agents need to explain what today’s buyers are experiencing and how thoughtful pricing and marketing strategies can help sellers succeed in a competitive environment.
expectations and reality
Perhaps the most eye-opening statistic in our conversation came from a recent consumer survey. Almost 80% of sellers believe they will receive more than their asking price.
What is the reality? Nationally, approximately 62% of homes sell for less than asking price.
“This is one of the biggest expectation gaps we’ve seen in years,” Childers said. “If agents don’t address that gap before the home goes on the market, they’re almost certainly going to have an even more difficult conversation in the weeks ahead. I’d rather educate up front than apologize later.”
Local data creates local trust
The conversation also included the fact that while national statistics are powerful, local statistics are even more valuable. The key to success for agents is to take national data and customize it to prospective sellers with local market analysis.
View seller:
Average days on market on the MLS Percentage of homes selling below asking price Changes in inventory on the market Local buyer demand Impact of new construction on pricing
By combining national trends with local expertise, you can quickly position yourself as a trusted advisor and not just repeating the headlines.
Don’t stop at just the problem. Share your solution.
One of the biggest mistakes agents make is sharing market statistics without explaining what consumers should do with the information. All problems need to be addressed with a plan.
For example, rather than simply saying that homes are taking a long time to sell, tell a story of a recent property where your pricing strategy, marketing plan, and presentation generated multiple offers despite market conditions. If you don’t have a personal example, share a story of a listing that sold quickly and an analysis of why other listings didn’t sell.
Share an example. Share success stories. Share the strategies behind your success. Consumers don’t just want information. They want confidence and a clear path to their desired outcome.
Agents should be like kids selling lemonade
Childreners shared stories about how agents should prepare for the questions and pain points sellers are having today. While running, he came across a group of children selling lemonade. Like many of us, his first thought was, “I don’t have any cash.”
Before he could finish thinking, one of the kids yelled, “Take Venmo!” Those kids anticipated opposition before it became loud. That’s exactly what a good agent does.
Today’s dissent is not hidden. They are predictable.
Sellers are wondering:
Why can’t my house sell? Is the buyer negotiating further? Why do houses stay on the market for so long?
An agent who prepares an answer before a question is asked will build much more trust than an agent who acknowledges the reality but doesn’t have a solution or example to provide a solution.
Opportunity is not the market. It’s up to you to explain it.
Consumers don’t expect us to control interest rates, inventory, and affordability. They look to us to help them overcome those realities. That’s where professionalism separates.
Agents who only report market statistics are educated. An agent that combines these statistics with a clear strategy will give you confidence. And confidence is exactly what today’s buyers and sellers are looking for.
As Mr. Childers said during our conversation, we cannot control the market. We can control how well we describe it. In today’s environment, that may be the most valuable service we provide.
Jimmy Burgess is Chief Coaching Officer of HomeServices of America and President of Berkshire Hathaway HomeServices. Connect with us on Instagram and LinkedIn.
