Monthly Commentary
In this month's edition, I recap recent market activity and share research, articles, and events I hope you’ll find interesting.
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One of the more interesting parts of my job is that no two sales are quite the same.
Over the past month I've been out with several buyers looking at apartments. Some were beautiful. Some weren't. One had over 30 groups at its first open house and highest/best by the end of the week. Another had multiple offers before we even got there. A third looked good on paper but was a letdown in person, generating far less interest.
After each showing, the same question usually comes up: "So...what do you think it's worth?"
It's a reasonable question, but not always the most useful one.
Over time, I’ve come to believe that a home doesn't have just one value. It has different values depending on who's looking at it.
There's the value suggested by comparable sales, the value a buyer believes is fair, the value a buyer hopes to negotiate, and the value created when buyers compete.
As you can imagine, those values are often quite different.
Inevitably, when losing a bidding war, the natural question is “Did that buyer overpay?" Sometimes the answer is probably yes. Other times I don't think so.
Maybe the winning buyer had been searching for a year. Maybe they planned to stay for the next twenty. Maybe the layout fit their family perfectly. Maybe their view of the future and their own finances is different. Or, maybe they simply valued that home more than anyone else.
That doesn't necessarily mean the buyer made a mistake. It just means value isn't always objective.
I think that's one of the reasons buying a home can feel so emotional. We naturally want certainty. We want someone to tell us what a property is "really worth."
However, the market rarely cooperates.
I've come to see my role less as telling clients what to do and more as helping them understand where the market is, where the competition is likely to be, and perhaps most importantly, what strategy best aligns with their goals.
Sometimes we win, sometimes we lose, and sometimes we walk away - which can often be the hardest decision.
One thing I've noticed this summer is that inventory remains fairly limited. With fewer new choices, buyer interest can build surprisingly quickly when an attractive property comes to market. While seasonality certainly plays a role, the best listings seem to generate strong competition regardless of the time of year.
And, in my experience, "best" doesn't necessarily mean the biggest or most expensive. More often, it's the combination of an appealing property, thoughtful pricing, professional presentation, and smart positioning.
At the end of the day, sellers don't have much control over the market itself. We can't control interest rates, inventory, or the economy, but we can control is pricing, presentation, exposure and positioning. And, those are often the very things that determine whether buyers see a home as just another listing or one they don't want to lose.
Whether you're planning a move, thinking about one someday, or simply enjoying following the market, I hope you have a wonderful rest of the summer.
And if you'd ever like to talk through your own situation, I'd be happy to have the conversation.
All the best,
Steve
Thinking of selling your home?
Further Reading
This month's commentary touches on some of the themes I've written about recently. If you'd like to explore them further, please click the titles below:
Your Home Has Significant Value - So Does What Comes Next
Discusses why the decision may matter more than the valuation
What's Your Home Really Worth?
Discusses understanding value in a competitive market and the different forms of value that influence real estate decisions.
