As we’ve observed in recent blogs, there is a definite trend in real estate at the moment toward what more closely resembles a buyer’s market.
Increases in mortgage rates and a growing disparity between house prices and wage rises have both contributed to more resistance from buyers. They are still very keen to purchase, but we’re observing that they aren’t prepared to accept sellers’ terms as willingly as they were a few months ago.
This is a major market shift and it does demand that sellers adapt their approach, so that the home conforms to what buyers are now looking for.
The most fundamental issue is pricing the home correctly. Sellers have become accustomed to being able to achieve even better returns on their sale than their neighbors in similar homes have just enjoyed. With price under pressure, however, it’s essential that homes are priced to be in-tune with market conditions in order to attract interest. Overpriced property is likely to be simply ignored.
It’s therefore paramount that you work closely with your agent to establish a price that is going to work in the current conditions.
You should also be prepared for your home to take longer to sell now.
The days of “For Sale” signs disappearing almost as soon as they appeared on front lawns are largely no longer with us. It’s important to remember, however, that those were exceptional conditions and we are arguably now seeing a return to a more normal and sustainable market. Of course quick sales still happen, especially for homes in best condition in their sector, but it is wise to acknowledge that the process may take longer than you expect, based on previous sales in your area.
It therefore follows that not waiting to sell your home until the New Year is a wise move, because you will be giving yourself a much wider window of possibility to get the right offer if you list now.
As we discussed in our last blog, and contrary to what a lot of people assume, the period between now and December 31st is a very busy time, with very motivated buyers who may, for example, be changing jobs in January or who simply want to be moved in before the holidays, so they can entertain in new surroundings.
Remember also that, in a more competitive marketplace, condition of the home becomes an even more vital consideration. Buyers are now finding they have greater choice, so it follows that the homes that are best presented will be the ones that attract the most interest. When homes were selling more quickly, extreme competition among buyers meant that they would often compromise on certain aspects of homes that they were not altogether happy with. This is much less likely now, so attention to detail is vital.
While there has been a shift in the market, the good news is that buyers are still keen to purchase, just not so eager to give in to the demands that sellers were making not long ago.
At Hyland/Schneider Team we undertake more transactions than any other agents in the Prescott area. We’re therefore in the best position to not only provide you with up-to-the-minute guidance on how to optimize your home price, but also how to present and market it in the most effective way in the present situation. Why not contact us today at 928-445-2100.