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How to prepare for a quick home sale as mortgage rates rise

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Due to supply and demand imbalances in most places, homeowners have dominated the home market for years. However, due to the sharp rise in mortgage rates and double-digit home prices, some buyers may be thinking of withdrawing from the market until it settles down. Homeowners who want to get the buyer’s attention before that happens, and homeowners who want to sell or want to sell immediately for personal reasons, have more time. You may need a slightly different approach than the sellers you have.

heard Craig McCulloughPrincipal of the Catalyst Group of Compass Real Estate in DC, and Founding Partner of Lindsay Reishman. Reishman Group When Pareto Hurry up and ask the seller for advice in Washington, DC. The following has been edited for length and clarity.

Q: Q: Some buyers may be in a hurry to buy now before the price goes up. So what can sellers do to accelerate pre-sale preparation?

McCullough: First, make a plan with the team. Many sellers rush to accomplish what they think is best, and then they call their agents. This is the wrong order. Call the agent first. Together, you can prioritize the items you want to run and save on wasted projects that don’t add value.

Next, first focus on the most profitable items. The kitchen and bath updates are great. Time is important here, so focus on quick tasks such as replacing old cabinet hardware, sink faucets, pendant lights, and more.

Addressing these items will not add value, but focus on what sells your home better. Neutral paint colors are unlikely to add value to your home, but if you don’t have to be afraid to paint your home, buyers will certainly be interested in it sooner.

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Finally, make sure the space is neat, clean and free of extras. Coffee makers, sodastreams, kettles, knife blocks, canisters, etc. at the kitchen counter may be fine. I promise you that buyers are not. They respond best to clear and open spaces. Apply the same logic to your living space. The tchotchkes in your home are neutral and you may not notice it as you look at it every day, but buyers feel cramped and overwhelmed. To move, you will eventually need to pack them. Please go early.

Also, a word of advice: call your agent as soon as possible and use their network. I was able to get in and out of the contractor for a complete kitchen and bathroom refurbishment in two weeks. why? Because your agent is pulling these contractors from all the referrals they send. Just ask for help.

Reishman: Good presentation and reasonable pricing are the keys to selling quickly. Two things you can do to accelerate the process are: 1. Put your list in MLS with “coming soon” status while you work. You will not be able to view the property if the status is “coming soon”, but this will allow the agent to display your list on the buyer’s radar, which will be available as soon as you publish the list. 2. Hire help. There are companies that specialize in process management. Therefore, if you have a short schedule and many clients need to make adjustments, you will pay to join an outside company to oversee the process (Wayforth.com An example of a company like this). They coordinate with painters and movers, get quotes, do help packs and more.

Q: Q: How are sellers adapting to the rate of increase?

McCullough: Most sellers still hold on to prices, despite rising interest rates. The length of time and the number of bidders have changed. Selling a home takes time and usually shows one strong offer rather than the previously consistent bid war. As long as the seller is patient, the property with the correct price will get its list price.

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Reishman: No incentives needed as supply is still low and demand for quality housing is high. The biggest difference I see is that sellers are starting the selling process sooner so that buyers can lock in at lower rates. An example is a client buying a home built upstream of Northwest DC and delivered in October. Instead of waiting to sell their home in the fall, we’re listing it personally now, so buyers can fix the rate, close it, and rent it back to the seller if needed. I can.

Q: Q: Has the seller still received multiple offers? Are there any strategies they are using to encourage it?

McCullough: Sellers should no longer expect multiple offers. It’s still happening, but much less often. The only way to encourage this is to keep it low, but there is also the risk that only one offer will be offered at a low price. For now, patience and realistic expectations are key.

The seller must have a local lender and agent partner to set up special financing. Many lenders offer incentives to be advertised on the list. This is a victory for the buyer and a victory for the seller. Just make a phone call.

With liquid rates, many buyers shop at the top of the approved price range. A good listed agent should carefully consider the buyer’s lender and pre-approval guidelines. If the seller accepts the offer and the house is no longer affordable due to a slight price change, the buyer goes out and the seller now has contaminated property. Check the purchasing power of the buyer before accepting the offer.

Reishman: Yes, there are still multiple offers. Our strategy is to make sure the property is great and has fair pricing. Don’t be overly greedy for the list price. But let the market tell you the value.

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