By Drew Burchette, June 5, 2024
There has been this notion out in the zeitgeist for the past decade that you can just “put a sign in the front yard and your house will sell”. There was and is some truth in this statement, but it leaves a lot of open questions and limited room for nuance. Sure, it will sell, but how will your process be and how will you feel about your bottom line?
From my seat, it has never been that simple, but I can see how people might feel that way. At the mid-point of 2024, I think that statement is no longer true, and looking backwards, probably hasn’t been for a while. Median days on market (DOM) is higher now than it has been in ages, and I cannot remember a time when I’ve seen more sale-fails and back on market (BOM) listings. Why?!?
From the selling side…
When going on the market your house has to be 100% dialed in OR priced realistically based on the condition. There is some middle ground for sure, but regardless, the list price has to be honest, and you’ve got be prepared to give some back in the form of repairs, credits and/or price reductions especially if your house lingers on the market for a while. The more barriers you can remove for buyers, the better. These notions have always been conventional wisdom, but when the market was on fire, and heavily weighted on the seller’s side, there was way more room for error. That room is now gone. Sellers are still getting used to this notion and not everyone is well coached and prepared.
From the buying side…
Rates suck today, they have sucked for a while, and they will probably continue to suck for the balance of 2024. The days of 3.0% or less are gone and not likely to come back this decade. What does that mean for buyers? In exchange for the abysmal rates, I give you selection and power. Inventory is consistently higher today than it has been since 2014 when we were slowly emerging from the Great Recession. When I meet with a new buyer for our initial tour these days, there are dozens of decent listings to comb through; in recent years this was certainly not the case. When it is time to negotiate after inspections, buyers have significantly more power than usual. In the past few years I’ve been maxing out credits and getting some wild price reductions + repair concessions for buyers. But…not all buyers are prepared for the sleepless nights, fluctuations in monthly payments and costs to update their potential purchases.
Hence the up-tick in sale-fails.
My advice…
Sellers: be prepared for any and everything. Don’t get attached to any numbers and hang in there…this might take a bit longer than usual.
Buyers: do your homework and have a SOLID understanding of your costs + rate variability before writing an offer. Yes, you have more negotiating power, but you can’t have it all and there is no such thing as a perfect house.
Let’s all work together to make everyone’s dreams come true!!
Drew Burchette
Principal Broker | OR
I arrived in the real estate business over a decade ago and have since helped scores of people buy and sell their homes.
The groundswell that I created in my practice is rooted in the relationships that I have nurtured over the years. My style is educational, and I see myself as the coach and leader of your real estate transaction. My coaching is geared towards empowering you to make informed decisions that will lead to your best possible outcome. I excel at asking the questions that get to the heart of the matter which in turn enables a smooth sale process.
Away from the office I am passionate about so many things, but it all begins and ends with my family. My boys are both in elementary school and parenting is an ongoing challenge and joy for my wife and I. We love to travel around Oregon, the East Coast, Mexico and beyond. My passion for surfing, kiteboarding, and fishing help to keep me grounded in life.
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