Are you planning on selling your home this year? A new year brings with it the opportunity for new experiences. If that resonates with you because you’re considering moving, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one.
Keeping these three best practices in mind is a great way to ease some of those emotions and ensure you feel confident in your decision.
1. Price Your Home Right
The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you’ll want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, explains:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
If you price your home too high, you risk deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine your ideal asking price.
Impact of Price on Visibility
Sellers, the market is not as liquid as it was at the beginning of 2022. Inventory is lower, and there is less market demand due to interest rate volatility and other markets’ economic uncertainties. The wider bid-ask spreads are impacting the age of listings on the market.
Although counterintuitive, strategically pricing a home a little lower than market value rather than higher generates a higher sales price. Sellers often list their homes a little OVER market value to leave room for negotiation. This strategy dramatically decreases the number of buyers who will see their listing! (see the chart below)
Additionally, pricing a home at the high end of the value will generally cause the home to sit and accrue market time. This is especially true in today’s market. Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized upon listing the property. By doing so, the seller will not negotiate with a buyer over the price but instead, have buyers compete for the home.
The most effective way to sell your home fast is to price the home competitively based on the active comps in the market. Listings that go into contract within 30 days have little to no price discount, and the longer a listing remains in the market, the more significant the discount. The listing price significantly impacts the percentage of potential buyers looking for your property compared to its actual Market Value. The price is too high, and it might cost you by a longer time on the market and resulting in possible multiple price drops. If the price is too low, you could lose money by leaving too much behind.
2. Keep Your Emotions in Check
Today, homeowners are living in their homes longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the home from the fair market price. That’s why you need a real estate professional to help you with the negotiations.
3. Stage Your Home Properly
While you may love your decor and how you’ve customized your home over the years, not all buyers will feel the same about your design. That’s why it’s essential to focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:
“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”
Buyers want to envision themselves in the space, so it genuinely feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. A real estate professional can help you with tips to get your house ready to sell.
Key Takeaway
If you’re considering selling your house, let’s connect, so you have the help you need to navigate the process while prioritizing these best practices.
Other educational articles about the market and your home search are under Karen’s Blog.
