Current market uncertainty may increase the already stressful process of selling a home. From the get-go, 75% of first-time home sellers report feeling overwhelmed, anxious, or emotionally exhausted. Now more than ever, sellers need a knowledgeable partner to help them navigate the process.
Getting in the mindset of modern sellers and creating a seamless experience will be key. Here are three things agents should know about first-time sellers to guide them through a complex selling season
1. Pandemic-era purchases are driving seller behavior
The low-interest rate buying frenzy in 2020, compounded with high competition, limited inventory, and a newfound flexibility with remote work led to a wave of regret—79% of first-time home sellers admit they made mistakes, with 91% saying these errors played a major role in their decision to sell.
Breaking that down a bit further, 94% of Gen Z and 86% of Millennials acknowledge pandemic-era buying mistakes, compared to just 48% of Baby Boomers. Gen Z’s top missteps were buying too soon (35%) and moving without considering long-term lifestyle fit (40%). For Millennials, financial considerations were top of mind – 37% underestimated maintenance costs, and 31% overlooked inflation and interest rates.
First-time home sellers need a trusted local expert to guide them through one of the biggest financial decisions of their lives. It may not be second nature for them to know how to navigate the market in order to make an informed, confident choice, especially when economic factors are in constant flux. During an already emotionally charged time, the natural role for an agent is to step in with their extensive knowledge about everything from timing to market conditions.
2. Generational shifts impact a seller’s mindset
All sellers are different – from what’s motivating their next move to how they want to spend their money. For Gen Z, top of mind is the desire for a lifestyle change (30%), like relocating to a new home or neighborhood. Millennials are more focused on major life transitions (30%), such as job relocations or family growth. Meanwhile, around one-third of both Gen X and Baby Boomers are mostly prompted by financial factors, like mortgage rates and home equity.
However, both Gen Z (38%) and Millennials (39%) view their next home as a smart investment, planning to stay as long as it makes financial sense. Another 27% of Gen Z see it as a stepping stone. In contrast, Gen X (44%) and Baby Boomers (40%) are still holding out for that “forever home.”
When working with different generations, meet them where they are. Understand what’s motivating their decisions and how they like to best make decisions. Agents are the experts in creating a customer experience that feels unique and catered to the homeowner. This might mean helping a seller realize when they are being stubborn or emotional about an offer that doesn’t meet expectations, but is probably right.
3. Sellers want control and convenience over everything
Finally, we know that sellers want to be in control as much as possible. They crave convenience and predictability during a stressful time. More and more sellers are saying that a smoother, more streamlined process matters more than getting the highest price. Over 65% of first-time sellers would accept 20% less for their home to avoid the stress of staging, repairs, and the uncertainty of offers. The average home price in America is $503,800, meaning many sellers would trade over $100,000 for less hassle.
This is where agents come in. When agents come to the table with a smooth and convenient plan that meets clients’ unique needs, which can sometimes include having a cash offer on hand, it can make a world of difference.
The industry is constantly changing. And while the day-to-day may be different, the core value and role of the agent is as important as ever: being a consultative, trusted advisor who can partner with a seller or buyer to help them navigate one of the biggest decisions of their life.
Nick Boniakowski is the Head of Agent Partnerships at Opendoor.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
*June 1: the day that has the most new listings on average, based on analyzing MLS data from the past decade.
Unless otherwise noted, all above data is from Opendoor’s First-Time Home Seller Report.
