Overall Market Update- 5 Realities for Sellers Now
Overall the past few years, most of the US has been in a strong seller's market. Historically, low interest rates coupled with rising incomes resulted in buyers who were ready and able to buy a home. It was a crazy time when sellers needed to do little more than put a sign in the yard to attract multiple offers.
However, the post-COVID housing market is quite different. The uncertainty in the economy has slowed the pace and rising interest rates have caused buyers to reconsider their purchase, and the amount they are willing to pay. As a result, sellers must go back to the tried-and-true methods of selling a home, debunking the myths of the past few years.
5 "New" Realities for Sellers
1. Price the Home Realistically- Now sellers must be more careful and price the home realistically to avoid losing the precious early days of a listing when buyer's interest is high.
2. Make Repairs- Buyers have more choices now and they will be more careful about buying a home that needs a lot of work. Sellers should consider completing pre-inspections to reduce surprises for everyone during the escrow period.
3. Consider making concessions- Buyers often ask for reasonable concessions; sellers should weigh the offer before rejecting. In recent months we have seen more sellers offer a credit for a buyer to "buy down' their interest rate. This concept helps reduce the monthly payment for buyers and can lead to a higher net to the seller.
4. Staging is Back- Make sure the home is show-ready and sellers may consider some simple staging to make the home more appealing to buyers.
5. Be Prepared to Wait- The pace has slowed. In a "normal" market, more home take 30-45 days to enter escrow.
Finally, sellers should pay attention to their local market and determine the right time to list. Balance has returned to the housing market. Sellers and buyers must adjust their thinking back to the "old" concepts to be successful.