Redfin Survey: Nine out of 10 Real Estate Agents Agree Now is a Good Time to Sell; One in Three Say Low Inventory is Sellers’ Biggest Challenge

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Waiving Contingencies is the Most Effective Bidding War Strategy
According to Redfin Agents

SEATTLE–(BUSINESS WIRE)–Nine out of 10 real estate agents agree that now is a good time to sell
a home, according to Redfin (www.redfin.com),
the next-generation real estate brokerage. In a survey of more than 800
Redfin agents across the country conducted earlier this month, 89
percent responded that now is a good time to sell, up from 83 percent
last year. This is the highest percentage of agents reporting now is a
good time to sell since Redfin began conducting this survey in 2012. On
the other hand, the number of agents reporting that now is a good time
to buy fell from 45 percent last year to 34 percent in March — the
lowest result recorded since 2012.

One out of three agents named low inventory as the greatest challenge
sellers currently face. That is up from one in six agents surveyed in
November of 2015 — a significant change in sentiment in just four
months.

“Many of my prospective home-selling clients start the process by
shopping for a replacement home first before they pull the trigger on
listing their home,” said Redfin real estate agent Sabrina Booth. “Once
they experience how competitive the market is for homebuyers it gives
them pause, and some choose not to sell. There are options for these
folks though. One way my clients have solved this problem is to take a
home equity line of credit and use it as a down payment for their
replacement home before listing their current home for sale.”

This dynamic presents a unique challenge for prospective home sellers
who are also in the market to buy a home, and for the market as a whole.

“The lack of existing and new homes for sale has fed a vicious cycle of
low supply for the past year,” said Redfin chief economist Nela
Richardson. “Builders still aren’t providing enough new construction to
satisfy demand, which means the market is desperately relying on
homeowners to decide to sell. The good news is we are seeing some
improvement with a 12 percent increase in new listings this February, a
trend we see continuing into March as well.”

The good news for buyers is that sellers this quarter are much less
likely to have unrealistic expectations about their home’s value, with
34 percent of Redfin agents indicating that was their selling clients’
biggest challenge, a marked drop from 57 percent in late 2015.

Faced with a bidding war, Redfin agents suggest that buyers who can’t
offer all cash consider waiving contingencies. Forty-seven percent of
respondents said waiving contingencies or making other concessions is
the most effective strategy for getting an offer accepted. Only 15
percent said being the first to make an offer was the best strategy.

About the Survey

Redfin’s survey was conducted between Mar. 10 and Mar. 13, and includes
responses from 836 homebuyers in 38 states and Washington, D.C.

To read the full report, please visit: https://www.redfin.com/blog/2016/03/q1-2016-redfin-agent-survey.html.

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About Redfin

Redfin (www.redfin.com)
is a next-generation real estate brokerage that represents people buying
and selling
homes
. Founded by technologists, Redfin employs a team of
experienced, full-service real
estate agents
who are advocates for their clients, earning
customer-satisfaction bonuses, not just commissions. Redfin.com
features all the broker-listed homes for sale, as well as
for-sale-by-owner properties that don’t pay brokers a commission. Redfin
also offers online
tools
, built by its own software engineers, that make the entire
process of buying or selling a home easier. The company serves more than
80 major markets across the U.S. and has closed more than $25 billion in
home sales. In 2014, Redfin was included in CNBC’s Disruptor 50 list as
an innovator that is revolutionizing the real estate industry.

For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
Data Center
.

To be added to Redfin’s press release distribution list, subscribe
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Contacts

Redfin Journalist Services:
Jeffery Marino, 206-588-6863
press@redfin.com