Buyers are "Like a Deer Caught in Headlights"

From Inman News:

Marketing homes may have been a breeze in some quick-sell markets during the real estate boom, but agents in slowing markets say it now can take more time and work to close deals. Properties must look pristine and be priced well to sell, they say, and sellers should cater to buyers if they want more bites. Home-price appreciation is slowing in much of the country and even reversing in some formerly hot markets, sales have fallen off dramatically, and inventory is building up...

Tamara Dawn, a real estate broker in Sacramento, Calif., said there is a lot of uncertainty and apprehension among buyers about market conditions. "A lot of people are just in limbo. My mentor used to tell me that the competition was inertia." A lot of headlines seem to suggest that the "sky is falling" for the real estate market, she said...

"I do a lot of staging of properties. I buy a lot of my own furniture and accessories," she said. As homes are now sitting on the market longer, Dawn said that she has purchased a larger personal inventory of furnishings. It's more important these days to stage homes, as there are more homes on the market competing for the same prospective buyer.

"Before, people got caught up in the frenzy -- 'If I don't get this one the next one will be more expensive.' People weren't looking at the same degree (of detail). They were overlooking flaws," she said. Nowadays, homes have "got to be pretty stunning. It's like a job interview. (Staging) is incredibly important."

It's better to list a home at the best possible price upfront, she said, rather than starting higher and dropping the price down when the home isn't selling. Also, Dawn said she encourages sellers to take care of inspections ahead of time to attract a larger audience of buyers. Buyers today are "like a deer caught in headlights," she said, and if the seller can ease these tensions then all the better.

While Dawn, a real estate professional since 1980, traditionally works with more buyers than sellers, she said the ratio of buyers to sellers that she works with has changed from 6-to-1 to 2-to-1 as the market has changed -- the rising inventory means a lot of sellers and not as many buyers. As sales get leaner, Dawn said she can rely on business from past clients.