An Open Letter to Sellers in Today's Real Estate Market

An Open Letter to Sellers in Today’s Real Estate Market

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How’s it going? I hope everything is okay. It has been such a weird market, but ideas are beginning to change. So, let’s discuss. This comes from a good place, and it’s based on observations and what I hear from real estate professionals.

 

THINGS TO KEEP IN MIND ABOUT THE CURRENT MARKET:

The market is still competitive, but it’s not what it was in February. The truth is, that buyers have been gaining momentum lately. Most agents I talk to say they’re easily getting half as many offers as they were a few months ago. So, instead of receiving eight offers, you might only receive a few. And if your price is too high, you probably won’t get any offers.

1) You’ve lost the power:

The market is still competitive, but it’s not what it was in February. The truth is, that buyers have been gaining momentum lately. Most agents I talk to say they’re easily getting half as many offers as they were a few months ago. So, instead of receiving eight offers, you might only receive a few. And if your price is too high, you probably won’t get any offers.

 

2) Buyers are increasingly sensitive:

Skyrocketing mortgage rates mean affordability has taken a hit. Seriously, buyers are easily paying $500 or more every month for a mortgage this year compared to this time last year. This means that buyers are increasingly sensitive to price, condition, and location. In other words, if they pay top dollar, they are more and more choosy about what they buy.

 

3) Don’t aim for unicorns:

Beware of the idea of ​​a unicorn buyer who will rush in, ignore comps, and pay top dollar cash for your home. If that happens, so much the better. Keep in mind that only about 15% of sales this year were all cash in the region. This means that 85% of buyers obtain a loan.

 

4) But Zillow says:

Don’t dwell on what Zillow says your house is worth. The only thing that concerns is what actual consumers are happy to pay. No one gets stuck on a low Zestimate, so why cling to a high Zestimate?

Buyers have become more sensitive to condition, so it might be worth tackling minor cosmetic repairs before hitting the market (if you can). I’ve spoken to a few buyers who feel put off by the state of homes right now for the price, so a good way to stand out is to make sure your property is tight. Buyers notice the details, and fixing minor issues only gives them less reason to say

 

5) Avoid strong arm movements:

“Remove the possibility of the nationwide property and appraisal services, pay me another $25,000, and give me your firstborn.” These things still happen in certain price ranges (okay, not the kid’s thing), but the market is starting to see a little more common sense lately. I’ve heard quite a few stories of buyers bailing out after the seller hits back with a strong-arm swing that might have worked a few months ago. In short, buyers are picky about entering into a contract AND staying in the contract.

 

6) Sales are old and crusty:

Sales tell us what the market was like probably 30-60 days ago when the properties were closed. In other words, sales are like historical artifacts that tell us what the market was like. Instead, we see the current market temperature along with what’s happening with signups and waits. This means it’s essential to know the sales AND assess any changes in temperature since then.

 

7) Be prepared to negotiate if necessary: ​​

I hear more and more stories of buyers asking for credits for repairs, concessions, and price reductions. Sometimes sellers feel like they’re losing when this happens, but in some situations, it’s just the ticket to selling for the best price. In short, listen to what buyers are asking for and make the deal work for them, too. It’s not just about you. Do not fear VA and FHA customers either. Now is not the time to push the price: Listen, sellers are not allowed to always earn more than recent sales. My advice? Set a reasonable price and see what the market offers you. In some situations, you may also need to price below recent sales to generate interest. Forget record sales or your overpriced neighbor. What is contracting right now? It’s the only thing that matters.

 

9) Tighten up details:

Buyers have become more sensitive to condition, so it might be worth tackling minor cosmetic repairs before hitting the market (if you can). I’ve spoken to a few buyers who feel put off by the state of homes right now for the price, so a good way to stand out is to make sure your property is tight. Buyers notice the details, and fixing minor issues only gives them less reason to say NO.

 

10) Watch for signs of softening:

Talk to your temperature worker and listen for signs of softening. When you see things like this, let them influence your pricing and trading strategy. You can also get in touch with a commercial real estate appraiser to get the job done.
Buyers have become more sensitive to condition, so it might be worth tackling minor cosmetic repairs before hitting the market (if you can). I’ve spoken to a few buyers who feel put off by the state of homes right now for the price, so a good way to stand out is to make sure your property is tight. Buyers notice the details, and fixing minor issues only gives them less reason to say

 

11) Don’t expect to go over $100,000:

A seller got two offers and said, “Let’s expect something higher.” I’m not saying rush to accept offers, but don’t embrace unrealistic expectations. Headlines in the past were about bidding wars, but right now the headlines are starting to say things like “The temperature has changed” or “It’s still competitive, but that’s not what it is anymore. was”. On that note, don’t be afraid to lower the price if necessary. You don’t give up value if the value was never there in the first place.

 

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