Real estate industry reports have been saying that housing inventory is climbing up from its well-documented shortage. With more options, more buyers may be entering the market. And with those greater options, they’ll need help sorting through them to find the right home. That’s where agents come in.
The first step many take in a home search is through online listing portals. As you search them, whether public portals such as Zillow or your local MLS, search filters are vital. Ideally, your search will start with some generic filters, then you can add more as you narrow down from properties that have caught your clients’ eyes. Many portals are embracing AI to give these filters extra power. But too many filters and the results will be too narrow.
The obvious filters to begin with are listing prices, sizes and location ranges based on what you know your client is looking for. But what filters should be prioritized after that, especially if you’re a new agent who is not used to the property search process? Have an extensive conversation with your clients to know their wants and don’t wants, of course, but here are filters that can often be counted on to be useful for both agents and their clients.
The monthly payment on the home
A listing price can be deceiving because while it is what your buyer clients will pay upfront, it is not the entire price tag. Homeownership is an ongoing expense thanks to costs such as property taxes, mortgage rates, homeowners’ insurance and more. So, when nailing down the price of a home, be sure your clients know not only the listing price, but the estimated monthly payment.
Portals such as Realtor.com and Zillow include a monthly payment filter under the broader “price” category, calculated based on the aforementioned costs of homeownership and more. If the listing price is within your buyers’ budget but the monthly payment gives them pause, then that’s another house you can cross off the list to keep your search productive.
Days the listing has spent on the market
Realtor.com cites the number of days that a listing has spent on the market as a factor buyers should be aware of during a home search. True to their word, the Realtor.com’s listing status filter includes an option to see how many days the listing has been on Realtor.com’s portal, from the day of to 30 days. Zillow offers a similar “Days on Zillow” feature, from one day to 36 months.
If a home has been on the market for a relatively long time, that can put your buyer client in a better negotiating position. If the seller hasn’t had luck selling their home, then they’re likely more eager to make the deal and compromise. It also puts you in a more powerful negotiating position—if you know the home has spent weeks on the market, you can ask why. This doesn’t have to be an aggressive question, merely approach it that you’re being thorough in getting every piece of relevant information.
To that point—a buyer might also think a home being on the market for multiple weeks is a red flag. You can explain why this isn’t necessarily the case, but you can also filter out houses that have been on the market too long for your client.
The home’s age and condition
Some overlapping filters can be used to separate houses out by their ages: when was it built? Is the home an existing and pre-owned property or a newly constructed home? If the home is a new construction listing, could there be a premium on the price? How high is that premium? Filtering out new construction can be an effective way to keep findings within your buyer clients’ price range.
If the home is decades old, will it need renovations? Perhaps clients don’t want a home past a certain age because renovations are exactly what they expect? You can come to the seller and their agent armed with knowledge of an aged house and inquire about what renovations have been made recently.
In this case, it’s also useful to get a full list of the house’s amenities (appliances, air conditioner, heating, an electric generator etc.), so you can inquire about the age on them and the cost of renovating or replacing them if the need arises. This also offers a good opportunity to share local businesses (contractors, electricians, plumbers etc.) that you have worked with in the past, showcasing your value.
Monthly HOA fees, if applicable
One of the costs weighed in monthly payments is the membership fees for the Homeowners Association, or HOA. Some portals include a filter for the maximum amount of monthly HOA fees, ensuring that your buyer won’t be shocked by the fee if/when they become homeowners part of that association.
A possible range for this filter is only houses with no HOA fees, if your buyer doesn’t feel like paying the extra expense. To ensure your due diligence, you can also explain the specific pros and cons of HOA membership to ensure their decision about avoiding the fee is a fully informed one.
Going into a negotiation with a seller knowing that there is or isn’t an HOA fee, and the implications of what that means for owning the home in practice, also creates a more open and transparent dialogue.
Tours being offered on the listing, and when
Listing portals are a quick and easy way to pin down which local listings your client might be interested in. But a buyer will likely (and absolutely should) want a closer look at the home, and in person, before making an offer.
Zillow allows searches to filter out homes if they don’t offer a 3-D tour, an open house and/or an AI-powered Showcase. The Homes.com front page of its search engine includes tabs for 3-D tours and open house schedules on listings near you. If the 3-D tour impresses your buyer, you can then look into the open house times and take the next step of your clients’ home search from digital to physical.
