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Suddenly, the housing market is not all about the sellers

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Holden Lewis | NerdWallet

Selling a home these days isn’t as easy as it was a year ago when sellers could choose among competing buyers.

“Overall, I think the current buying and selling experience is comparable to the summer of 2019,” Boston-area real estate agent Dana Bull said in an email. It’s a lively market, but it’s not so ferocious and doesn’t have an underlying desperate tone.”

Last year’s home selling advice consisted of tips for choosing the best offer. However, these recommendations are obsolete. As sales slow down, fewer offers are coming in for homes.

Sellers need new guidance. Buyers are spending more time and getting picky. Here are some suggestions for selling homes from realtors:

Higher rates = fewer buyers, fewer offers

Mortgage rates have soared this year, pushing housing beyond affordable levels, making it less imbalanced than it once was. As a result, home sales will decline.

Selling a home is also taking time. His 61.2% of homes sold in July were on the market for more than his 30 days, compared to his 54.4% in July 2021, according to real estate broker Redfin.

Sellers were confident they would receive multiple offers in 2021, but are now receiving fewer offers. Homes sold in June received an average of 3.4 offers, up from his 4.4 in June 2021, according to the National Association of Realtors’ Monthly Confidence Index.

Not so long ago, it was common to list properties on Tuesdays and sell them by the end of the week, says Terry Robinson, a real estate agent in Ashburn, Virginia. Please submit all offers to .”

Buyers are waiting for price drops

Here’s the old fashioned way to sell your home.

  • List at a price well above your target price.
  • Negotiate with buyers who offer lower prices than you expect.

That strategy isn’t ideal if you’re selling to first-time buyers today.

“Homebuyers will ignore homes they deem too expensive,” said Chuck Vander Stelt, a real estate agent in Valparaiso, Indiana, in an email. This is especially true for millennials and Gen Z buyers, who are more comfortable browsing and presenting offers for homes that sellers have set “justifiable prices,” he said.

Michelle Dougherty, a real estate agent in Northern Virginia, noticed the same thing.Buyers were like, ‘You know? [the price]Instead of waiting for sellers to drop prices, she encourages her clients to present their offers on the following terms: The worst thing a seller can say is no, she points out.

Pricing strategy is still basic

With the above in mind, agencies and their clients use traditional techniques to set asking prices. Look up recent comparable sales prices and adjust based on the condition of the home and the patience of the seller.

“If you need the income to secure another home, you may be tempted to price it at the lower end of the range to secure enough interest and sell quickly,” Bull said.

Bull adds: Price cuts can often attract new buyers and sway people already considering a home at the original price to take action. “

More sellers are lowering their asking prices. According to data from , the reductions nearly doubled in one year, from 134,036 in June 2021 to 266,812 in June 2022. Realtor.com.

Buyer does not want to inherit expensive repairs

All these agents stressed the need to thoroughly clean the house, repaint it, or at least retouch it, and beautify the outside. says Doherty. If the seller doesn’t have the time or money to make the place immaculate, “they should be priced according to how the product looks,” she adds.

But beauty doesn’t go as deep as sheetrock for today’s buyers. After paying the down payment, paying off the mortgage, and eating pizza with the friend who helped me move, they want assurance that he won’t be plagued with expensive repairs for his first couple of years. , he says Vander Stelt.

“Home sellers can get more of their homes if they can show that new owners are less likely to spend a lot of money in the near future,” he said. He suggests hiring an inspector before listing a home, addressing identified issues, and rehiring the inspector after repairs to produce a report and share that report with the buyer. .

Vander Stelt conceded that recent sellers are unlikely to recover the cost of replacing a roof, furnace or water heater. But “once the seller removes all doubt, the buyer responds by making an offer more quickly and usually by paying a higher price,” he said.

No bidding wars needed

Sales success is not measured by the number of competing offers a property attracts. One acceptable offer is enough.

“Yes, the market has changed,” says Robinson. “But more importantly, the house is still under contract and so is yours. You may get an offer or two, but the point here is to get the offer.”

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Holden Lewis writes for NerdWallet. Email: [email protected]. twitter: @ Holden L.

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