We all knew the buyers boom would be affected by government
over reach attempting to stop inflation. Raising the interest rates
have affected us, luckily not drastically. I want to speak directly to
sellers with this weeks real estate news
Buyers are still out there, but there are less of them and they are tired.
Their buying power has been dramatically affected by the increase to mortgage payments.
Some values are not rapidly appreciating but you have not lost the equity gained over the last few years. Consider the following 3 key points if you are planning
to sell or in the process of selling.
You may have to prepare your home to sell -You have been spoiled for two years with the “auction” style market we were in.
Some properties will still get lots of offers, but most will not. You
may need to stage your home and freshen up your paint and
landscaping. You should deep clean and declutter and make it
move in ready for the next owner.
You may have to pay some money towards the buyers closing
costs - Buyers who are having to spend every penny they have to
buy a home will need some help again. Traditionally, sellers have
helped buyers for decades with closing costs. Those days are
coming back, so be ready to have to negotiate realistically.
Remember, statistically the first offer is the best, so be flexible
and make the deal work!
Pricing is KEY - I can not emphasize this point enough. It takes
about 10 days to be considered a stagnant listing. If you overprice
your home to start, I am certain you will wind up accepting less in
the long run. Just being $5000 over priced is detrimental to your
marketing. Our buyers don't have a “ make an offer” mindset
anymore.
They are conditioned to need to pay list price or over to
get the home. Plus, the public information available to everyone
instantly means they know the estimated value before they even
walk through the door. You can’t trick someone into overpaying for
your home. You need to seriously consider ALL the recent sales
and price accordingly. Additionally, the bank will not lend a
borrower more than the home will appraise for, and appraisals are
formulated by using the most recent sales comparable values.
The most important take away should be we still have a great
market to buy or sell in. Be encouraged and don’t let negative talk
drive your decisions. You can still achieve your goals, you should
just hire someone experienced to support you along the way.