The Seller’s Market Continues But…
Updated: August 8, 2022
The market is continuing to be good for sellers; however, inflation, a slowing economy, interest rates and higher prices to buy are changing the dynamics of selling your home. Understanding how the market is “working” for potential buyers can help you position your home for more money. Here is my advice for selling for more in a changing possibly cooling market for sellers.
What’s Still Driving Prices for Real Estate Here?
There are four factors in my opinion that are driving the real estate market:
- Low inventory
- Better homes for the money if relocating for value
- Inflation. Real estate is a hedge investment
- Lifestyle. This is a great area to live in.
The inventories of homes for sale are still low and there seems to be no “bubble” to cure the lack of inventory. Although mortgage interest rates for purchase financing has been higher recently than a year ago, but the rates are still very, very good. The biggest threat to the hot housing market is the economy, and whether inflation will continue to rise or level out during the year.
Challenges For Selling Right Now
It certainly seems most sellers will get more money than ever selling their home in this market after talking to an agent. The new market is becoming more balanced where terms and condition matters and any surprises during the transaction often means a difficult renegotiation or the sale is cancelled and the home is back on market
- Buyers want to preview your home online first.
- Buyers are not buying “anything.” Condition matters now.
- Buyers don’t want to overpay or be in a bidding war.
- Buyers want a well maintained home.
- Buyers are less committed with the current economy.
- Sellers are overpricing their homes.
So, what are the tips and best advice for home sellers to sell for more?
What Makes Buyers Offer More?
The data for closed sales shows ideally what do the buyers want in order to make an offer for more. What are the key criteria that brings offers for more money from Buyers?
- Your home marketing online has to be comprehensive and intrigue the buyer to see the home in person.
- Your home needs to be priced for an offer after the first weekend on market.
- Be prepared to sell and move at the close of escrow.
Seller Tip #1 – Price your home to sell the first weekend.
The buyers are searching and finding a home online first, committed buyers are looking at the newest inventory. Your house is only just listed once. The price will attracted the most buyers. However proper marketing of the home and property features, amenities, updates, remodeling and terms of sale bring the best and highest offer to the seller. Buyers today know the market and are price savvy. A home not properly marketed and priced the first weekend isn’t getting multiple offers and the lack of interest for your home will result in less favorable sales price or terms to sell your home as time on market increases.
Sell for More Tip #2 – Move In Ready Homes Sell For More
All buyers especially in a changing market want a nice home that is ready to move into. Buyers are paying way more than they ever thought they would for their dream home. At a minimum buyers would like to buying a home that has been well cared for and with no major issues to address after sale.
Sellers almost always see more money and return on investment for new carpet and fresh paint, as well as making sure everything is in working order in the home.
If you won’t buy the home you live in because it does look well cared for, most buyers will feel the same way after touring your home. Well cared properties always sell for more and in this market, they sell for a lot more.
Sell For More Tip #3 – Property Updates and Features Sell For More
If your house is over 15 years old, updates will bring much needed value and more money when you sell. Newer HVAC, roof, updated appliances, remodeled bathroom, kitchen are all important items buyers look for in a listing.
Also updates and improvements to the property matter too for selling for more money. Buyers are looking for larger yards with landscaping, a pool or room for one, additional parking for RVs/storage, outdoor kitchens, fire pits, covered patios.
If you currently own a home in an area that is served by Pacific Gas and Electric a home with with solar owned or leased or owned with help you sell for more.
Sell for More Tip #4 – Move Out When You Sell
Buyers really want to move into the home when the escrow closes. Marketing that the home is vacant or no rentaback or replacement property contigency goes a long way to helping you sell for more money.
Pro Tip: If you plan on selling a vacant home, take pictures of it staged or with furniture.
The biggest change to real estate in the last couple of years is the buyer’s journey starts online for finding a home. Where I see the biggest miss is the showcasing of your home online by real estate professionals. Even if you do all the tips if your home “shows” poorly online the interest will not be there to see the home and make an offer.
Let me show you how my process to sell your home can deliver a price that makes selling an option.