As potential home sellers, you may have some fears or concerns about the current state of the real estate market, as it may impact your ability to sell your home for the price you want.
For you to decide whether or not this is the right time to sell your home it is essential that you freely share your concerns with your real estate agent and see what solutions can be found to clear up your apprehensions.
To help you achieve that goal, you will find below a synopsis of the two most common concerns raised by potential home sellers in the current real estate market as well as some suggestions for addressing them.
1). Decreased Buyer Pool
Concern:
You may worry that high mortgage interest rates will limit the pool of potential buyers.
Suggestions:
a). Check with your real estate agent the number of days on the market for active (for sale), pending ( in contract), and recently sold properties similar to yours in your neighborhood to get a better idea of the current demand.
b). Make sure your real estate agent puts together an effective custom-made marketing strategy for your home to attract potential buyers quickly. To achieve that goal:
Make sure your realtor hires a professional photographer to capture high-quality images, and create a virtual tour as well as a floor plan of your property;
Make sure your realtor creates a compelling listing headline that will immediately grab the attention of potential buyers by highlighting the key features of your home;
In order to allow potential buyers to envision themselves in your home, make sure your realtor crafts a detailed and engaging listing description that identifies and emphasizes any unique features or upgrades that make your property stand out: Location, energy efficiency, view, natural light, architectural design, storage, landscaping, etc.
Make sure your realtor emphasizes nearby amenities, schools, parks, and other attractions in his/her marketing materials and showcases the lifestyle benefits of living in your neighborhood;
Make sure your realtor knows how to leverage social media platforms like Facebook, Instagram, or Twitter to reach a broader audience;
2). Impact on Property Values
Concern:
You may fear that higher interest rates could lead to a decrease in property values.
Suggestions:
a). Have your real estate agent provide you with recent comparable sales in your area to find out if property values are holding steady in your neighborhood.
b). Focus on the property's unique selling points to justify its value. This is why the listing headline and the property description must be as detailed as possible without being redundant;
c). Ensure the property is priced competitively.
To do so you need to understand the difference between the asking price and the selling price. To put it simply, the difference between the asking price and the selling price in residential real estate is known as the "sale-to-list ratio" or "price negotiation percentage." This ratio represents the percentage by which the final selling price differs from the original asking price. A higher ratio indicates that homes are generally selling close to or above the asking price.
Some sellers intentionally set an asking price higher than the expected selling price, leaving room for negotiation. This is not necessarily a good strategy as by doing so some potential buyers will simply choose not to come and see your home. Conversely, if the asking price of your home is too low you may end up with lots of potential buyers but only a few of them will have the means to buy your home for the price you want. As a result, you will lower your chance of having interested buyers compete with each other and come back to the negotiation table with a higher offer.
It is stating the obvious, that what sellers need is an accurate asking price to attract buyers quickly. To determine the optimal selling price for a home, there are key data that need to be thoroughly analyzed such as but not limited to: Sales of comparable properties in your neighborhood AKA comps over the last 6 months, listing price per square foot, days on the market (DOM), sale price to list ratio for recent sales of comparable properties, market trends, and conditions specific to your neighborhood; the condition of the home, the local amenities and schools, the commute and/or proximity to public transportation and so on.
The aim of this extensive data study is twofold: Identifying all the reasons why buyers should buy your home AND anticipating and addressing before listing your property for sale the reasons why buyers may want to negotiate the asking price so they won’t be able to do it.
To conclude, bear in mind, that whatever the state of the real estate market, serious buyers AKA able, willing, and ready buyers are always actively searching for homes. You just need to make sure that your asking price and marketing strategy will persuade them that they must come and see your home.