Are home buyers and sellers currently stressed out and overwhelmed?
“In a word, yes,” says Re/Max Canada’s executive vice-president, Elton Ash.
With spring in the air, markets have begun coming alive in British Columbia, where he lives, and across the country. But there’s volatility all around, amplified in the news, the headlines and social media. Amidst economic uncertainty, concerns around housing affordability and availability, and a re-imagining of life post pandemic; anxiety is high, Ash confirms.
Buyer and seller expectations remain out-of-whack in many cases. There’s denial. Market adjustments can take longer for some to process than others. Buyers may be waiting for prices to drop further. They may still be hoping to find deals. Vendors may expect their properties to sell in a flash or insist on listing at impossible peak prices.
Online valuation tools and social media amplify confusion and stress for clients
Word is that the confusion can be aggravated by some of the online valuation tools used by consumers. Agents report that these may come in far too high (or alternatively too low), sometimes by hundreds of thousands of dollars, fostering unrealistic expectations and resulting in tough conversations with clients.
As these platforms tend to use only the quantitative sales data available online and don’t take into account factors such as the actual condition of the home and upgrades, many realtors deem them irresponsible. Despite digital tools being a huge help in today’s transactions, it’s clear that – as in this case – they can also be a complication. You can always walk away if clients are unreasonable, of course. But most agents prefer to do their best to educate them and manage expectations instead.
We’re way past sticking a sign on the lawn and hoping the place sells. Navigating the real estate market has become increasingly challenging for all involved. In this complicated market, clients are seeking stability, reassurance, and a companionable relationship with their realtor that strikes a balance between the professional and the personal rather than being strictly transactional, says Ash.
Balancing professionalism and personal connection, transparency and humility
He cites Re/Max Canada’s newly-released ‘Future of Real Estate’ report, which finds that almost 70 per cent of Canadian homebuyers and sellers feel stressed about the real estate process, with an equal number indicating that their realtor helped them be less anxious about this journey.
The report found there’s a greater demand now for agent transparency and humility, with many clients ranking trust, familiarity, and quickness to respond as their top considerations when choosing a realtor. It’s increasingly important for agents to flex “soft skills,” such as empathy, patience and integrity, Ash asserts.
As the report notes, “It’s clear that the role of the real estate agent lies not only in helping people make sense of a volatile and fast-paced market but also – and most of all – ensuring people feel heard in the process.”
Ash recommends simplifying complex transactions by walking the client through them step-by-step rather than bombarding them with information. (“How would you eat an elephant? One bite at a time. That’s how to reduce the stress level of clients.”)
Soft skills are key
Laurel Legate, a member of Real Broker Ontario’s North Group team in Toronto, has a similar strategy (minus eating the poor elephant). “I’m working a lot with first-time buyers and sellers right now, and the conversation around expectations is one I’m having every day,” she says. “I’d rather have a tough conversation today than in 30 days.”
Legate finds that it’s crucial at the outset to show sellers comparables and thorough market analysis, then set a pricing strategy and be fully transparent regarding the risks of going with the wrong one. But some clients learn the hard way. If they insist on over-pricing, Legate will ask them to commit to re-valuing in a couple of weeks. After that time, “their perspective has shifted, and they’re usually ready to have that discussion.”
As for buyers, “They’re surprised we’re in multiple offer situations when several weeks ago there was room for negotiation,” observes Legate. “I saw a property last week with 18 offers. So 17 families didn’t get (the) house that they wanted. It’s a loss for them.”
Education and setting realistic expectations
Sometimes buyers may need to have an offer rejected to learn. When that happens, Legate puts on her “empathy hat.” Then she shows them more data, if that’s what it takes to bring them around. She always insists that buyers are pre-approved. “I don’t wait for them to fall in love with a house they can’t afford.”
Legate’s colleague Sophie Bokelmann, also with North Group, stresses that it’s “super critical” to educate clients on marketing strategies. Some buyers may not realize that an ‘affordable’ property they have their eye on has been priced low to increase the odds of a bidding war. Or sellers may not realize that a house down the street only sold over asking because it was way underpriced in the first place.
Clients often feel they know best, especially initially. “Social media is so dangerous right now. It’s the biggest obstacle to me getting through to clients,” reveals Bokelmann. “It allows everyone to feel they know the market personally.”
She asks buyers this pivotal question: “What is the highest amount you’d be comfortable paying so that if the house sells for $5,000 over your offer, you wouldn’t be upset?”
It puts things in perspective, she finds.
“The process is emotional. They have so many questions. One of the soft skills we need most as agents is communication.”
Susan Doran is a Toronto-based freelance writer who has been contributing to REM since its very first issue.
As a very active agent at 83 and 48+ years as a realtor , my business for the past two years has transitioned from the usual buy/sell homes. to land and broken houses they can tear down in the next 5 years and build new multi-units. They don’t care about the current interest rates The deals take longer because they usually want 30 days due diligence , environmentals , surveys ,etc. but most of my sales were not listed . They didn’t want to list but gave me a price if I had a buyer and I did the deal.