The market may be cooling down compared to the last two years, but that doesn’t mean it’s not a good time to sell your home. There are still motivated buyers out there who are searching for their new homes, they just have a lot more to choose from.
As a seller, it is essential to have a competitive strategy in place when listing your home and this strategy is going to look very different today than it did just a few months ago.
You may not be able to get multiple offers or bids way above your asking price, but even though prices have dropped, today’s median sales price is still higher than it was in January 2022.
Here are some tips to help you be competitive and sell your home faster in today’s market:
DON’T OVERPRICE YOUR HOME
Pricing your home right is a key factor in helping your home stand out to potential buyers.
According to Lawrence Yun, chief economist at NAR, “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
One of the most dramatic changes we are seeing right now other than the inventory is price reductions. On Aug. 7, there were 3,017 price cuts on active listings compared to 713 at the same time last year. Pricing your home to high will not only deter buyers from viewing your home but will leave it sitting on the market.
The pricing strategy will also be determined by your situation if you need to sell quickly or are in no rush or if you want to negotiate special terms such as a lease back.
HAVE REALISTIC EXPECTATIONS
Sellers have been spoilt with homes selling in a weekend and we’re not used to seeing homes staying on the market for weeks. In July the average days on market was 51, so be prepared to be on the market for a while. One thing to remember is that the average days on market in a normal market is 70 days, so while 51 days feels like a long time compared to recently, it is still way below the average in a balanced market.
DO MINOR REPAIRS
One of the ways buyers would make their offer stand out in a competitive market was to buy the home as is, which means they would have an inspection but not ask the seller for any repairs. With the change in the market, buyers no longer need to sweeten the deal and are asking sellers to make repairs on some of the items found during an inspection. This is still a negotiation, and the seller is not obligated to do all or any of the requested repairs. However, having minor repairs done ahead of time not only means less items for the inspector to report but also shows the house has been maintained.
PREPARE YOUR HOME FOR SHOWING
Taking the time and effort to get your home ready to list will be well worth it to make your home stand out. Declutter, especially the Knick knacks and personal items, remove extra or large pieces of furniture and thin out closets by packing as much away as possible. Do a thorough and deep cleaning. Touch up paint or repaint dark or bright colored walls a neutral color. Curb appeal is so important as it is the first impression the buyer will have as they pull up to your home. Adding fresh exterior paint or new landscaping will be money well spent to make the best first impression
BE READY TO NEGOTIATE
Buyers know the market has shifted and is more in the buyers favor right now, so get ready for negotiations. The buyer is likely to come in under the asking price, especially if the home has been on the market for a while. That doesn’t mean you have to lower your price or agree to concessions, and counteroffers have become the norm again in today’s market.
With the constant changing market, it has never been more important than it is now to work with an experienced local realtor. A local knowledgeable realtor will have a deeper understanding of what is happening in the current market and in your neighborhood. You also need a realtor with good negotiation skills and who will help you get your home ready to list and has a top-notch marketing plan that is effective in today’s market.
If you are thinking of selling and would like more information on today’s market, your home value or what you need to do to get your home ready to sell, please don’t hesitate to contact me for a free no obligation consultation.
Lorraine is a Multi-Million Dollar producing agent, has been a full-time Realtor for over 13 years, is an Associate Broker of KOR Properties, a Certified Negotiation Specialist, and is on the Professional Standards Board. You can reach Lorraine at (602) 571-6799.