This year is shaping up to be unlike any other that we have seen in real estate. In 8 months we have gone from low interest rates, low inventory, soaring prices and multiple offers to rising interest rates, increased inventory, price reductions, and increased days on market.
A shifting market can cause uneasiness with both buyers and sellers, which is why it’s important to remain equipped with the facts so you and your family can make sound financial decisions about your next move.
I wanted to take a few minutes to give you a few of my strategies for selling during this shifting market.
- Sellers need every ounce of advantage in this market in order to have a buyer step up and write an offer. No matter what, stage your home with a partial or full stage, especially if the house is unoccupied. This is critical so a buyer can connect with the house, feel comfortable in the space, and envision themselves in it.
- Aside from minor updates and repairs, painting is a must when prepping your home for sale. Painting is the least expensive way to update a home, it brightens up a space, and makes a positive first impression. And remember, a neutral color used throughout the entire home is recommended.
- Pricing is one of the most critical elements to a successful sale right now. Evaluate active listings in your neighborhood and see what the activity and feedback has been. Another important indicator when determining your price is looking at the active contingent houses that just went into escrow. This gives very relevant pricing and will tell you the price point where buyers are writing offers. These two factors will help you price your home. My biggest tip: position yourself to be the first or second best house in your price range.
- Ensure your agent keeps a list of every single person that views your home or inquires about your home. Not only should they keep a list, but they should have an aggressive follow-up plan with everyone who has come through. The role of a real estate agent is so important right now. Putting a house in the MLS and hoping and praying it sells will not work. Agents must call everyone and actively sell a home!
- Don’t hide the fact that you’re on the market. If you want to get your house sold, hold open houses every weekend until it sells. This gives parties the opportunity to revisit the house, neighbors can come by, and it keeps the momentum going and moving forward.
- If showing activity decreases substantially, consider a 5% price reduction. Do not adjust a price for anything less than that. A price reduction allows a new marketing opportunity, repositioning of the home, and allows for another agent caravan to view the home.
- Make sure your agent has a plan on how to keep you in the loop with what’s going on with your home and the market. At a minimum, you should receive weekly marketing updates and the activity that they are doing to sell your home. These updates along with truthful and transparent communication is the secret to success. Right now, sellers don’t want to hear the bad news, however with the shifts happening so fast, open communication will lead to success.
- Use a seller paid buydown. We are seeing a rise in interest for sellers willing to entertain a 2/1 buydown.Buyer’s have been shocked by the huge and rapid increase in interest rates, and some well qualified buyers have dropped out, due to those increases. In short, on a 2/1 buydown, the buyer would have an interest rate for year 1, that is 2% below the note rate, and then in year 2 it would be 1% below the note rate, and in year 3, it would finally be at the note rate. But those first two years, would be at a significantly lower monthly payment, making the loan payments much more attractive.
I’m a local real estate professional with decades of experience in the Pasadena area. I am available to assist you in buying or selling a home, so please contact me if you would like to schedule a time to discuss your needs.