This Slower Market is still a Sellers Market

I’ve been using March 16th as my marker for when to start gauging the impact the coronavirus stay-at-home orders have had on our area. For my purposes, the area consists of all of Sacramento County plus West Sacramento. Over the past 3 months we’ve had 3,424 single family homes sold in the area. Compare that to last year when we saw 4,638 homes sell in that same 3 month window. The number of homes sold are way down, but during this current 3 month window homes have been selling right at their asking and are going into contract with an accepted offer in 3 weeks or less of going on the market.

My personal experience during this time has been that priced-right homes generate a lot of interest. Getting my client’s offers accepted has not been easy. Getting an offer accepted has been the result of a multifaceted approach. Some key elements which have been successful for me include packaging the offer exactly as the listing agent has requested it with pre-approval letter and proof of funds included. That could mean I just need the offer, the loan letter, and the proof of funds but it could also mean I need to get special seller instructions signed, pre-list inspection reports approved, and PEAD forms filled out.

In addition to this basic strategy I like to implement letters. I encourage my clients to write a motivation letter that articulates how strongly they feel about the property in question. I think that is common practive these days. But I like to add in an additional letter from myself. I use this letter to wrap the offer package all together. I address this letter to both the listing agent and to the seller. In it I highlight the strengths of my client, reiterating their love for the property, and their overall commitment to the process. I also take the opportunity to highlight the career and achievements of the loan officer that is handling my clients’ financing. I also use the opportunity to put a spotlight on how I approach real estate by promising a smooth transaction which will be conducted with the utmost level of professionalism on my part.

I’ve been told by agents that my professional presentation of an offer has helped to tilt an otherwise even competition into my client’s favor. Yes, every transaction will have hurdles to clear, and it will have unexpected pitfalls that appear, so how you approach and deal with those events is important. I’ve learned that me promising to approach the business of real estate in a level manner, and putting that promise into writing, carries a lot of weight. This is an example for buyers to put genuine thought into who they choose for their representation because your agent’s experience and reputation matters.

Equally important to a successful experience is the synergy created between your loan officer and your Realtor. That’s why I spend time in my offer submissions promoting the loan officer, emphasizing their experience and their expertise. Putting the seller’s mind at ease by reinforcing the high level of representation you’ve selected makes you and your offer look more appealing than the competition. It hopefully results in an accepted offer for that home you really want.

The reason I decided to bring up these tips is due to our area’s current months supply of homes. While the market is significantly slower than normal, there still is only a 1.36 months worth supply of homes on the market. What that means for buyers is that it continues to be distinctly a sellers market. However, it is important to also note that while it is a sellers market, on average, homes are not selling for drastically more than asking. As a result, it is critically important that you and your offer are presented in the most professional way possible.