Factors sellers want to consider in a changing market

For the past several years, it has been primarily a seller’s market. It was common for a property to receive multiple offers over the asking price just a few days after being listed for sale. The Federal Reserve’s effort to reduce inflation has led to higher interest rates and downward pressure on the real estate market. The result has led to a more balanced market where buyers and sellers have equal leverage during the negotiation process. As the real estate market changes, sellers’ strategies when selling their homes should change as well. Here are a few ideas that sellers may want to consider in today’s real estate market:

Carefully consider any offer received. Often, the first offer is the best. As time goes on and a listing has not sold, you may have to entertain lower offers than the offers received when the property was initially listed for sale. It is prudent to work with a strong reasonable offer with the highest probability of closing.

The highest offer may not always be the best offer. As time is critically important in today’s real estate market, there are instances when it may be better to accept an offer that is a bit lower but has a large down payment (or is paid in cash) with a high likelihood of closing. An offer with a higher price but with many signifi cant contingencies may waste time if that offer subsequently cancels.

If it is financially feasible, spend the money to prepare and stage your home. As buyers become pickier it is important that your home shows well. The pool of buyers will increase with more buyers viewing your home as “turnkey,” meaning your home is move-in ready. Typically, a nicely prepped and staged home will sell for a higher price and in less time than a home that is sold without any preparation. Additionally, the cost to prepare and stage a home will be less than the additional amount you will receive in a higher sales price.

Carefully check the qualifications of prospective buyers. With the rising interest rates, it is imperative that you ensure that the offer that is selected is from a buyer who is well qualified for the loan needed to close the sale. A pre-approval from a reputable lender is a good start. Also, proof of the buyer’s down payment funds is critical in selecting the right buyer for your home.

Don’t over negotiate the sale. Of course, you should protect your interests through the terms of the purchase contract, but don’t make the terms so one-sided that the buyer runs away from the transaction. The terms of the purchase contract should be reasonable for all parties concerned.

Encourage your listing agent to show your home in-person as much as possible. A home or condo will show much better with the windows open (or AC turned on) and the lights turned on. Also, by showing in-person, your agent can explain the many positive features of your home and the amenities offered by the condo, homeowner’s association, and/or neighborhood in which your property is located. Along with showing your home in-person, your agent should host in-person open houses and broker’s open houses. The more opportunities we provide both buyers and brokers to view your home, the higher the probability of finding the right buyer who is willing to pay your price for your home.

Advertise the property in the proper venues to attract your target audience. As competition for buyers increases, your property must be exposed to both digital and print platforms suitable for your home. Additionally, video walk-throughs, drone photography and top-flight photos give your home a lift to attract more qualified buyers.

Hire an experienced, well-trained agent. An agent who has already been through a changing real estate market will help you navigate the complexities of a real estate sale in a shifting real estate environment. Additionally, your agent’s relationships with other agents can facilitate a smoother sales process. Finally, your agent should have resources for vendors (e.g., painters, movers, handypersons, etc.), and other professionals such as attorneys and certifi ed public accountants, who can assist in facilitating a successful transaction and ensure that there will be as few surprises as possible after you close your sale.

As with all things in life, we must adapt to changes in our environment. Sellers who quickly adjust their strategy to match a transitioning real estate market will have better results.

BETTER HOMES AND GARDENS REAL ESTATE ADVANTAGE REALTY
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