Experienced industry figures say they aren’t concerned about warnings contained in a report from the MLS Roundtable that the country’s system of real estate listings services is under threat.
As the critical shortage of new listings in Massachusetts drives home prices to new highs across the state and in the face of competition from the portal sites, buyers’ agents are being challenged to expand their territories beyond their usual areas of expertise.
Statewide sales of single-family homes were down 9.6 percent in June compared to the same month in 2018, while median prices last month edged up 2.1 percent year-over-year to $429,000, an all–time high, according to The Warren Group, publisher of Banker & Tradesman. The condo market was even more dire for buyers; sales were down 11.8 percent year–over–year and the median sale price in June hit $420,000, the highest monthly median ever recorded for condos in Massachusetts.
Yet, the region’s economy continues to expand, families are growing and retirees are downsizing, driving up demand and forcing buyers to keep their options open about where to live.
“If they’re not amenable to losing some of those must–haves, the next step is moving farther and farther away from where they want to be,” said Jim Major, a Woburn Realtor with Century 21 Northeast and president of the Greater Boston Association of Realtors.
Successful Agents Manage Expectations
It’s easy for buyers to zoom out on the maps on sites like Zillow or Redfin to and start to see lower prices. That’s something new in the era of the third–party online real estate websites, Major said. When the only search tool was the MLS, the buyer’s agent could help direct the search, and perhaps lessen the heartbreak a little for clients when they find something that’s too good to be true.
“Before those third-party sites, the agent had a lot more control over where the buyers were getting that information,” Major said. “That can be challenging, because how frequently info is updated isn’t the same across all platforms. Buyers get excited about listings that aren’t actually for sale.”
Even for listings that are real, the competition is fierce just about everywhere. With listings often going under agreement within a week of coming to market, buyers can experience a lot of heartbreak very quickly.
To stay competitive, Major said buyers’ agents are helping clients expand the area of their searches.
Websites like Trulia and Zillow can sometimes offer buyers an inaccurate picture of what homes are for sale, challenging their agents to keep them satisfied.
“We’re seeing more and more of our buyers’ agents from the Boston area out in the Worcester area with their clients, or down to Rhode Island or up to the New Hampshire border,” he said. “This means you need more expertise in more markets, and more mileage on the car.”
Even in Western Massachusetts, where maintaining a larger area of expertise is typical, Realtors are facing similar trends with supply critically low everywhere in the state, said Anne Meczywor, president of the Massachusetts Association of Realtors and a broker/associate at Lenox-based Roberts & Assoc. Realty.
“Sometimes buyers have to look a little bit farther out where they were initially looking,” she said. “Buyers can get discouraged. We just stay on top of things … a lot of the better agents out there will sit down and have a long consultation session with them, let them know all the things that are involved and a lot of steps along the way so there aren’t any surprises.”
Empathy Offers Key Advantage
In the face of the reams of data technology platforms possess about Massachusetts’ houses, buyers’ agents hold a trump card – they can be an empathetic, human face to the research their buyers are getting.
“It’s always a matter of good communication,” Meczywor said. “One of the things people don’t understand about Realtors is that we’re very good educators. Prioritizing [the search] is absolutely critical. We show [buyers] probably what they’re going to be able to afford by showing them what’s closed recently, and once you set that expectation for people, they’re usually very accepting of that.”
“They may have a champagne taste and a beer budget, but hey, you can buy some great beer out there if that’s what you’re actually looking for,” she added.
But in order to ensure a buyer doesn’t jump to a new agent before proper expectations can be set, you have to stay as engaged as possible, preferably face-to-face, Major said.
“A big part of that is how you communicate with that buyer, and how often you’re communicating with those buyers,” he said. “If there is a lot of silence between those meetings, they’re going to be talking to other people.”
