Market News November 10

Market Updates

Does a Property's HOA Pass the Sniff Test?
Since today's buyers are already dealing with higher rates and prices, you'll want to assist them with another cost: a property's homeowners association or HOA.


Membership in an HOA is mandatory for residents, with fees paid to maintain shared areas such as pools and landscaping. Although HOAs are a common part of condo and townhome lifestyles, a growing number of single-family homeowners are paying HOA dues.

HOA fees vary widely and may increase with little notice. There are also a few stories of fanatical HOA boards using fines or even foreclosure threats to enforce unpopular rules.

While buyer's agents aren't required to discuss a property's HOA, it's smart to offer guidance if needed. Here are some tips to share:

  • Ask for copies of all HOA covenants, bylaws, rules and regulations, and meeting minutes.
  • Research the HOA's budget and reserve funds, and how often it has raised members' fees.
  • Search the county website for HOA-filed liens, judgments or foreclosures.
  • Look at the HOA's attorney fees. Excessive amounts suggest that the board is having legal issues, creating rules opposed by members, or both.
  • Attend an HOA meeting, if possible, to watch interactions between management and members.1

How To Debunk That Iffy Seller Zestimate


Chances are, you've already dealt with sellers and prospects who are convinced that their property should be priced according to its Zestimate. Unfortunately, these are only within 5% of the actual sale price about half the time, while other Zestimates have been off by over 20%.

There are several reasons why Zillow home estimates are rarely correct. Here are three of them.

  1. Zillow relies heavily on publicly available data, such as property tax records and past sales data. This means that it won't pick up any additional value added by home renovations.
  2. The pricing estimator isn't that great at choosing comps. Zillow often can't recognize variations in local market pricing. This is best left to you.
  3. A sneakier reason: pricing estimates are based on a secret "black box" algorithm that users can't see. Therefore, neither you nor the homeowner will be able to easily identify the source of pricing errors.
In all fairness, Zillow suggests that Zestimates not be treated as perfect. Instead, their party line is that these pricing estimates are intended to provide a starting point, and that they don't replace a professional appraiser.2

Host a "Can't Miss" Client Appreciation Evening
Keeping your established clients and referral sources happy is as important as ever, especially if property sales are cooling with the weather. Hosting a unique appreciation event will provide opportunities to thank these people in person and even meet a new client or two. Here are some ideas to consider for different budgets.


Host a trivia night at a local bar or cafe. This type of event is especially fun when you hand out prizes for the winning brainiacs. Many bars love to host these, as they can boost weeknight business. You can write your own trivia questions, or use a site ready-made for the purpose, connected to a big-screen TV monitor.

Promote cocktail culture with a local mixologist. Zero in on well-heeled clients by hiring a skilled "mixologist" to host a cocktail-making class. Choose an exotic theme to pique interest. One example: drinks created by Constantino Ribalaigua, aka the Cocktail King of Cuba. Ernest Hemingway was one of his biggest fans.

Go cultural at the museum. If you're ready to plan a can't miss event with a bigger spend, host it at a local museum, historic landmark or national park. You can even host a cocktail event or dinner at a prestigious venue, like Manhattan's American Museum of Natural History.3

Should Your Sellers Drop Their Asking Price?
While some agents and sellers are nostalgic for 3% mortgages and bidding wars, the reality is that higher interest rates are beginning to result in lower property prices. Is this a seller's the best strategy? It depends.


Let's look at October's market shifts first. According to Redfin analysis, over 6% of homes for sale in October ended up posting a price drop, goaded by mortgage rates hitting their highest level in 23 years. Buyers who could have paid a seller's asking price earlier this year found themselves with a considerably smaller borrowing budget.

A large proportion of sellers aren't budging on price, even though most are aware of buyers' challenges. One reason for this is that many of this year's sellers watched others cash in during 2021 and 2022, with homes literally selling for up to twice the asking price. Today, these sellers are finding it difficult to accept that they've missed out on past years' bidding wars.

However, not all is lost. As the Federal Reserve continued to pause hiking interest rates, mortgage rates began to fall. Last week, daily average rates slid to 7.76%. In addition, inventory is still low in many popular areas. If your seller is content to wait, rates may continue to fall, and lowering their home's price may not be necessary.4

Remember Veteran's Day November 11th

Originally known as Armistice Day, Veteran's Day is always celebrated on November 11th. This. means it sometimes falls on a weekend, like this year. Even if you're not in your office or busy this weekend, there are still ways to honor veterans in your community, such as these:
  1. Sponsor or support a local event held to benefit military veterans.
  2. Volunteer to join projects that assist elderly or disabled veterans.
  3. Share this list of hundreds of special deals offered to veterans, such as free or discounted restaurant meals. Some participants are rewarding active service members too.
Lastly, if you're a military veteran or reservist, accept my thanks for your service.5

Sources: 1cnbc.com, 2ziagroup.com, 3theclose.com, 4themreport.com, 5va.gov