The housing market over a year ago was extremely competitive, especially under the $350K price point. The minute a property that was priced accordingly came on the market there would be multiple offers and in many cases a bidding war. Properties that are coming onto the market are not experiencing such high demand and are taking longer to sell.
If you are a homeowner thinking about selling these are signs that the market is changing. If you want to get the best price for your home and you are thinking about selling you may want make a more earnest effort to sell while the selling is still good.
Home Prices High + Rising Interest Rates = Market Slowdown
Since the housing market began to recover and with interest rates as low as 2% about four years ago, consumers were eager to become homeowners and this fueled a very high demand for housing. This high demand over the past few years caused home prices to steadily climb back up. In some cases home values returned to or even surpassed pre- 2008 values.
This rise in value has been great for homeowners. On the other hand, homebuyers have felt pressured to buy before values went through the roof. This pressure has caused a housing rush that has allowed sellers to sell for higher and higher prices. Recently though, these higher prices coupled with rising interest rates have diminished consumer buying power causing a noticeable slowdown in the market.
The Selling is Still Good
If you are a seller, the good news is that the market has not completely turned into a buyer’s market yet. “The signs are pointing to a market that’s shifting toward buyers, but in most places, we’re still a long way from a full reversal” according Realtor.com’s chief economist Danielle Hale (Sept 2018).
What this means is that there is still time to sell and make the most money possible on the sale of your house. However, since conditions for selling are different it is important to have a plan. Below are three tips for how to sell a home in this changing market.
3 Tips To Sell Your Home
Tip # 1 Price it Right
Selling it for top dollar does not mean selling it for the price you believe your property is worth. The property has to be priced according to what market conditions say it is worth. There are very few cases in which a buyer will pay more than the market value.
So it is very important that you list your property for a fair market value AND a price that conveys to buyers you are motivated to sell. Pricing it too high is quite simply sales suicide. Your Realtor® will create a Comparative Market Analysis (CMA) for you and help you price it accordingly. If you are selling FSBO request a free CMA here.
Tip # 2 Market Hard or Stay Home
When your property hits the market it has to be marketed properly and through all possible channels. The MLS is your best source of buyer leads but there are other strategies that can be implemented to create FOMO (fear of missing out) amongst the potential pool of buyers.
An experienced Realtor® will know how to generate this FOMO and get a steady stream of buyers moving through your home. So when you interview Realtors® ask them about their strategies for marketing. If they don’t market hard you may well end up staying home.
Tip # 3 Hire the Right Realtor®
There are many great Realtors® out there and unfortunately some that are not so great. If you want to sell your home quickly and for top dollar, you will need an experienced Realtor® in your corner. Take the time to do some research and interview the Realtors® you feel are the top three candidates. Choose someone that you feel can and will get your house sold.
While many sellers have experienced less offers lately, with an experienced and knowledgeable Realtor® on your side you have the best chance of selling your property while the selling is still good.
Désirée Ávila was an award winning teacher for 10 years and has a doctoral level education in Educational Technology. Désirée is now a licensed Florida Realtor and Real Estate Influencer committed to a high-level of professionalism and to helping others with their real estate endeavors through education. Désirée is a lifetime local resident of South Florida and is fluent in Portuguese, Spanish, French and Italian.