As I am sure you have heard, real estate inventory levels are leveling out across the country. After years of sellers dominating the market due to lack of housing availability and strong buyer demand, the number of homes for sale is increasing. This change in supply and demand requires some expectation changes for sellers. If selling is in your near future, here are some things to keep in mind:
Pricing – Although not that long ago, sellers could be aggressive when it came to pricing, now sellers need to be very reasonable and listen to their agent and the market when it comes to setting the home price. It doesn’t matter what you paid for the house, what improvements you have made, or what your neighbor got for their house six months ago; what matters when pricing your home now is determining the intersection between what a seller would like to sell for and what a buyer may pay. Finding that intersection can be a bit of a challenge in a changing market, so it is important to pay attention to the clues – the phone calls, inquiries, showings, and offers when a home is on the market. If those are not forthcoming then the market is indicating that it is not interested in the property at the current price and pricing accommodations must be made. Remember, every home will sell when priced well.
Days on Market – The average amount of time it takes listings to sell is on the rise. Although some homes may still sell very quickly, because the average is increasing, homeowners who are selling should assume that their home will not sell as quickly as in the past. That means that sellers may need to live with their home on the market longer and that means keeping it clean. On the plus side, it may mean that things aren’t as crazy the first week the home is on the market.
Offers – Although the right buyer (or buyers) may come along just as your home is listed, get excited about it, and make an offer, the reality is that when you get an offer, you should entertain it, even if it appears at the outset like both sides can’t come together. And remember, there are many different points in the offer that can be negotiated.
Negotiations – Sellers held the upper hand for a long time, and serious homebuyers had no choice but to acquiesce if they wanted the house since another buyer was around the corner. Now, buyers and sellers need to work together so both sides can win.
Just because the market is changing doesn’t mean it’s a bad thing – it just takes a change in strategy! In fact, I appreciate that both sides get to work together. I think that provides more opportunities for both buyers and sellers.
Because the real estate market changes all the time, it is important to be ready to strategize and re-strategize as needed. Ready to talk strategy? Let’s talk!