Zillow Economist Struggles to Buy a Home in NC: Lessons from the Competitive Raleigh-Durham Market

Real estate professionals spend considerable time educating clients about market dynamics, often encountering skepticism about the competitiveness of local housing markets.

Even industry experts, like Zillow's senior economist Orphe Divounguy, aren't immune from underestimating the local nuances of home buying. Divounguy's recent experience purchasing a home in Raleigh-Durham, North Carolina, underscores critical insights real estate professionals can share with clients navigating today's housing landscape.

Understanding the Local Housing Market is Crucial

Divounguy, who analyzes housing data professionally, initially assumed his knowledge of national housing trends would simplify his home search. Yet, he quickly learned a valuable lesson: there's no singular national market—housing is inherently local. Despite national headlines about increasing inventory and buyer leverage, the Raleigh-Durham area remains highly competitive, driven by strong local economic growth and demand.

Real-life Lessons from a Zillow Economist

In his search, Divounguy faced firsthand the reality of Raleigh's competitive housing market:

1. Underestimating Competition Can Be Costly

   • Divounguy initially disregarded his agent's advice to aggressively approach his first offer, submitting a modest bid on a home listed at $730,000. The home sold swiftly for about $50,000 over asking.

   • Takeaway: Encourage your clients to trust and heed your local expertise. Agents who thoroughly understand local market nuances can significantly influence buying outcomes.

2. Emotional Preparedness is Essential

   • After losing his first-choice home, Divounguy experienced a painful second loss, even after bidding substantially over asking price. The emotional toll was significant—his family was left in tears.

   • Takeaway: Prepare your clients emotionally for the ups and downs of competitive bidding situations. Empathizing with clients and setting realistic expectations can ease the stress of inevitable disappointments.

3. Proactive and Persistent Strategies Win

   • Ultimately, Divounguy found success by relying heavily on his local agent, setting Zillow alerts for immediate notifications, and swiftly acting when opportunities arose. He eventually purchased an off-market property that was presented to his agent by a colleague. The seller had a long list of demands, including a 2-month seller leaseback, which Divounguy happily agreed to.

   • Takeaway: Encourage clients to remain vigilant and flexible. Off-market properties or homes with unique seller conditions often present winning opportunities.

How to Guide Your Clients Effectively

Divounguy's experience highlights critical lessons that real estate professionals should continually emphasize:

• Local Market Expertise: Reinforce the value of your deep understanding of local neighborhoods, school districts, pricing trends, and competition levels.

• Swift Decision-Making: Guide clients in preparing their finances, pre-approvals, and contingencies ahead of time to act decisively when opportunities arise.

• Managing Expectations: Realistically setting client expectations about the potential need to offer above asking price or accommodate seller demands can significantly improve their homebuying experience.

Even the most informed buyers can underestimate market realities. By proactively sharing these insights and Divounguy’s cautionary tale, agents can better equip their clients for success in today's dynamic real estate market.

What have you found to be most effective at setting client expectations in markets that contradict the national trends? Leave a comment below or share with a colleague in an upcoming CE Class!

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References

Lloyd, A. (2025, June 2). I’m a Zillow economist who analyzes housing data for a living — even I found it difficult to buy a home. Business Insider.