In the recent Real-Time Market Sentiments Report performed by Redfin, it is shown that home sellers are losing their authority due to the tendency of buyers to be more demanding.
"Buyers' attitudes are changing dramatically," said Redfin San Diego agent Jordan Clarke. "There are more bidding wars now than there were this time last year, but more homes aren't selling for above the asking price. Once the price gets too high buyers just walk away."
The Redfin Real-Time Market Sentiments Report was done last month by surveying 900 Redfin agents across the country. The survey reveals that only 6 percent of the 900 respondents believed sellers have the authority during transaction, down from 36 percent in the first quarter. The report also shows that agent who thinks that sellers and buyers have equal power during transaction is 28 percent, up from 12 percent in the first quarter this year and highest recorded since the fourth quarter of 2013.
With the shift in the balance of power, Redfin agents who think that now is a good time to sell a home has fallen to 58 percent, the lowest level recorded by Redfin in three years.
"Sellers tend to look backward, while buyers mostly look ahead," Redfin Chief Economist Nela Richardson said. "As a result, more than a quarter of home sellers had to drop their price in October. However, seller expectations will eventually come down to what buyers are demanding. It's still a good time to sell, but just may not be as lucrative as many sellers hope."
In their press release in Business Wire, Redfin agents give some tips on how to properly strategize if you are planning on selling your home. Here are the following tips given by Redfin:
- 85% of agents surveyed said staging can improve a home's chances of selling.
- 25% of agents said buyers want an open floor plan.
- 35% of agents said millennials are looking for a short commute.
- 57% of agents said sellers have an unrealistic expectation of their home's value.
