I. I’ve Blogged a Few Times About What Constitutes a Bedroom?
A bedroom needs: (1) to have its own entrance to the main dwelling, e.g. a room accessible only from the master bedroom can’t be a bedroom; (2) to have 7-foot ceilings for the most part; and (3) to be at least 70 square feet with no side smaller than 7 feet.
Bedrooms do NOT need to have closets though – something many agents mistakenly believe. A bedroom also needs “egress” to the outside, which can be a window or a door (but effectively it means a bedroom needs a window too).
I bring this up because the same gentleman I referenced in the above blog, renowned appraisal blogger, Ryan Lundquist, recently blogged about bedrooms again: Is It Still A Bedroom If The Closet Is Removed?
The answer remains “yes,” but he added a new twist: sellers should think twice about yanking out closets in soft markets – where buyers seem to look for every possible reason not to buy a particular home.
II. Buyer Backs Out of Deal Because Listing Agent Cussed Too Much
This is a true story, and it just happened. The buyers simply found the listing agent “too disrespectful.”
So, yes, it’s a great reminder to always be at our professional best.
But it also occurred to me that this would likely not have happened in a “hot market.” In soft markets, though, buyers are not the least bit apprehensive about backing out of deals – when they know there is plenty more inventory out there.
III. In August I Wrote This Blog: Condition Issues Are Killing Deals More Than Ever; Why & What to Do?
I again cited Ryan Lundquist and reminded sellers to address as many condition issues as possible before listing a property. The reason is that we’re seeing more contract cancellations than ever because of condition issues.
Buyers are stretched too thin to do repairs; buyers have high expectations when prices are this high; and buyers, once again, know there are plenty of other homes out there.
IV. “Crash Bros” Continue to Scare Buyers! Solution?
I have blogged many times about how the many housing “doom and gloomers” are preventing buyers from buying and contributing to the wave of contract cancellations.
The “crash bros” include Melody Wright (“crash sis”), Darth Powell, and Nick Gerli.
The solution is Logan Mohtashami. He not only has great hair, but he is a wealth of anti-crash data! I highly recommend sharing his posts with clients.
HERE is a recent post in which he reminds us that pending home sales reached a multiyear high with rates near 6%. He frequently points out how much falling rates stimulate demand.
He also loves to go after crash bros directly, challenging them to debates over and over – and they always decline.
V. Overpriced Homes With Price Reductions Sit for 64 Days Longer
Seasoned agents, of course, know this in general, but Leonard Steinberg shared more specifics in his Compass Blog: “Overpriced homes that call for reductions now take on average 64 days longer to sell than those without them, the biggest gap since 2015. Properties sitting on portals show reductions, and that can be off-putting to buyers – Financial Times.”
Long story short – softening markets often require rethinking everything, including home prep, demeanors, the info we share with clients, and more.
