Are review periods here to stay?
It has become the norm to see review periods on listings. Will it be here to stay?
More than likely…YES
As long as inventory levels are below 2 months I predict review periods will remain on 80% of all single-family listings.
Inventory levels will remain below 2 months as long as prices continue to go up. The human brain bases the future on what has happened in the past. If home prices went up 1 day, 1 week & 1 year ago, the seller and buyer will predict they will continue that path. This keeps demand high.
Be watchful on the narrative about prices going down. When this happens it triggers a safety and protection mechanism in the brain. The consumer will assume prices will continue to go down. When this happens sellers will panic and try to list to try to prevent future losses and buyers will put on the brakes.
It doesn’t take much for the shift to happen. It is not an economic force that will trigger it. It is the perception of the future.
When the market shifts, you may still see a review period the only difference is the seller will be more likely to take an offer prior for fear of losing that buyer.
Now, if you want to win more multiple offer situations send me a private note and let us chat for 15 minutes. There are techniques you can use to massively increase your odds.
I don’t want to write about it here because then everyone will be doing it and it won’t work.
Nick McLean Real Estate