Last week on my video series Guidance by Glazer which you can check out on our team’s Facebook page, I talked about the ways in which you can detect it’s a buyer’s market.
Given that we are seeing a clear cut shift in consumer command (i.e who controls the market), I thought it relevant to share those tips this week. So without further ado, here are the 5 subtle signs to look out for.
The 5 Subtle Signs It's A Buyers Market
#1 When a buyer's broker is offered more than 3%
Since the buyer isn’t always aware what the commission structure is, its hard to know that this is happening around the city. But it is! When an owner tries to incentivize the sea of brokers out there by paying them more, it usually means they can’t sell the home.
#2 When you see more and more catered and sponsored Open House tours and events
We live in a world dictated by sensory experiences (think of the power of Instagram). By inviting people to a home and also offering them food, music, drinks, raffles, etc, you stand a chance to better capture their attention. When you combine any of the above at an open house tour then you know the market is really shifting!
#3 When incentives are being offered by the owner unrelated to price
What does this mean? Specifically it means when the owner offers to cover things like closing costs or a number of years of maintenance/common charges. Since those costs can’t be bundled into a loan it’s a way to reduce the cost of the purchase without effecting purchase price.
#4 When you have brokers personally and individually reaching out to other brokers to put specific property on their radar
Since so much information passes before us (brokers) each day, when the market shifts, we have to go out of our way to highlight our properties. This never happens when properties are flying off the market.
#5 When the first line of a conversation amongst brokers is "some market, huh?"
While I say this in gest, its human nature to lament when things aren’t going well. When every broker is moving property and having a great year they don’t typically volunteer that in a casual conversation amongst their peers. In a shifting market, it’s the first topic of discussion. Misery loves company!
As you can see, what makes the above pointers subtle is that they don’t often reach the consumer level. But now you know! You can watch me explain these points in further detail in my video by clicking the link below.