The real estate market is changing. There is still very low housing inventory, which is to the advantage of home sellers. That is one of the biggest reasons home prices have gone up so quickly in recent years. However, the other reason for price increases was historically low mortgage rates.
Interest rates have gone up in 2022 as a response to concerns about inflation’s impact on the economy. This has driven home buyer demand downward and caused buyers to be much more deliberate in their purchasing decisions. We have seen home price appreciation leveling out in our local real estate market and in most markets nationwide. We are even starting to more price reductions from sellers whose houses aren’t selling as quickly as they would have hoped.
The past few years of real estate activity set some unrealistic expectations from home sellers. Now, they are having to reset their expectations based on current market conditions and expectations for the near future of home sales. Home buyers are more price conscious and less willing to pay above asking price. This is why your pricing strategy as a home seller is so important. All markets are local and will very somewhat from region to region. You have to analyze the trends and find the perfect “sweet spot” with your asking price.
Here are a few good home pricing and preparation tips to consider if you are getting ready to sell your house:
Analyze the Market
You must research the market and look at the most comparable homes to yours. These may be houses in your direct neighborhood with similar sizes and floor plans. Condition is another factor to keep in mind. A property that needs some work or feels outdated simply won’t generate the same attention from buyers as one that is in great shape and ready to move in. The days of a “problem property” selling quickly are past us.
Get Your Home Ready
It is very important to be a better-prepared home seller in a slower real estate market like this. You should have a plan and take the time to get your house or condo ready for the market. We’re talking about making repairs and investing in strategic upgrades. We’re also talking about professional staging and marketing to present your property in its best light and attract more quality buyers.
Trust the Experts
In the past few years, home sellers didn’t have to make much effort to get their homes sold quickly. The ones who did prepare saw even better response and the highest prices, but even the least-attractive properties drew attention from eager buyers. Money was cheap for buyers because of such low interest rates. They were willing to spend more and make aggressive offers. That is not the case anymore, so hiring experienced professionals can be the difference between success and disappointment in today’s market. Talk with real estate agents and find someone you trust to skillfully guide you through the process of preparing and selling your property. Utilize resources like professional home stagers and marketing specialists to increase your property’s exposure and appeal. Now more than ever, you want to take advantage of real estate experts who can help you get more out of your home sale.
Set the Right Price
A good real estate professional will be able to guide you through the home pricing process. They have access to current market information and trends to provide comparable pricing models. They know which homes are getting offers and which aren’t—and why. Ideally, you want to find a strategic asking price. It should be high enough to attract the right types of buyers and set you up for an acceptable selling price. At the same time, it should be low enough to not scare away any potential buyers. The higher your asking price, the fewer people will even be looking at your property. Don’t limit yourself too much.
Set a Realistic Price Range
Setting your acceptable price range is a smart idea. It’s okay to have a high number in mind if everything goes right, but you must understand the lowest amount you are willing to sell for. Your asking price will likely be somewhere in between, allowing for some price reduction if necessary while still maximizing your reach and perhaps generating multiple offers that could get you above asking and closer to your high-end goal.
Speaking of price reductions, this is where today’s home sellers are struggling the most to adapt to changing market conditions. You have to be realistic and understand things are different now than they were even just six months ago. They will probably be even more different in six months from now, so this may still be your best time to sell. Set realistic expectations and an acceptable price range. Understand the market and listen to the experts throughout the process. You can still generate a great return and a relatively fast sale if you do things right and are willing to adapt.
If you have questions about the current state of real estate in Southeastern Pennsylvania or Northern Delaware—or if you are getting ready to buy or sell a home in this area—contact The Cyr Team today for a no-obligation consultation. Let us help you make the most of your next move.