Work with the Right Real Estate Agent to Sell Your Home
House prices come down to the micro real estate market. What’s going on in the U.S. as a whole is different than what’s going on in Austin, Texas. [And both are] different than what’s going on in your neighborhood. You might ear that it’s a strong seller’s market, but you might be in a micro buyer’s market.
I advises researching your market on your own, then interviewing real estate professionals to find the best person to work with. Sellers should approach working with an agent as though they’re forming a team. You’ll be creating a plan together on how to maximize home pricing.
Think about Buyer Preferences that May Affect Your Home Pricing
In addition to home condition, other factors, including buyer preferences, affect price. Being located on a busy street or alley, for instance, may deter some buyers.
I put myself in the buyers’ shoes [about] what they’re seeing in the home. For instance, many are home schooling right now. That is influencing which features buyers want in a home.
Know that Seasonality May Be a Factor
Seasonality has historically been a factor, but 2020 was an exception, when strong home sales extended into late fall and early winter. Existing-home sales in November were up almost 26%, and sales prices nearly 15% from the previous year, according to the National Association of REALTORS®. Transactions and house prices nationwide traditionally trend up in the summer, when home shopping activity is high. They slow in the winter, when demand wanes. Demand also correlates with Americans’ higher mobility rates in the summer, when school is out. However, seasonality is also regional, with markets in the Northeast and Midwest peaking more significantly in the summer than the South and West, NAR reports.
Listed homes have been going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.
Weigh Mortgage Rates Against Inventory
Low interest rates can of course make purchasing a home more affordable for buyers. However, the lack of homes on the market has created stiff competition among buyers. In fact, it often puts them in bidding wars, nullifying the benefit of the low rates. According to Redfin, record low interest rates have increased home buyers’ purchasing power by 6.9%. But higher home prices have cancelled out the effect.
In multiple offer situations, I create a spreadsheet outlining the terms and pricing of each offer for my clients. I then calls the loan officers of the potential buyers to make sure their information has been verified. After that I goes through each offer one by one with her sellers. Together, they evaluate which one is not only the best, but also the most secure. She also helps her sellers prepare for the appraisal by creating a list of the home’s updates from the past few years.
Why You May Need to Be Flexible
Flexibility is a plus, even when circumstances seem to favor sellers. Low inventory and aggressive house prices are compromising many buyers’ ability to afford a home. Sellers should be prepared to make adjustments if necessary.
No one has a crystal ball. Ideally, the seller should list at a price that gets attention and triggers a lot of interest, he adds.
When buyers are continuing to take advantage of ultra-low interest rates, a seller’s market will remain in areas with sought-after price points and a low inventory of homes for sale.