As much as we would like to think that buying and selling real estate is organized, controlled and rational, there are times when that is not the case. We are in one of those times now.
Right around June 1 – with rising interest rates, fears of a recession, a long-delayed vacation season and ever-increasing prices – buyers collectively decided to just take a break. The market typically slows down somewhat in mid-summer, but this year was a bit different. Sellers have gotten used to houses selling with multiple offers way over asking without needing to do much of anything to bring in buyers.
As they say, the times they are a-changin’.
So, what can you do if you want to sell your house? Here are my thoughts:
Be realistic and be serious
This is probably not the time to “test the market.” If you are ready to move on, buyers will understand and react accordingly. If they sense you are not truly ready to sell, they won’t bring you a wheelbarrow full of cash.
Pricing becomes more important
Don’t look at what prices were in March or April of this year; instead look at what they were in 2021 – that is a more accurate predictor of what your house is worth.
Underpricing your home used to be a strategy that led to multiple offers. This is probably not going to work well in today’s market. Buyers often look at asking price and come in below that.
Overpricing your home will send buyers scurrying
They will stay away in droves. Buyers look at the days on market and say to themselves: “Lots of days means something is wrong with the house, so I can lowball the seller.” There is an expression I love: “There are no bad houses, just bad prices.”
Be patient
Houses in general are taking longer to sell, so don’t expect offers after the first open house.
Be open to compromise
Buyers in today’s market feel emboldened – and if you aren’t willing to work with them, they will move on to the next property. Negotiations can drag on for days and don’t always end well.
Make sure you put your house’s best foot forward
Buyers are looking for any excuse not to buy your house. So, spend a little extra time and money to make your house look the best it can look. You don’t have to spend huge sums, just make sure it looks as good as it would were you hosting your daughter or son’s wedding.
Be realistic
If your house is on a busy street or is next to an apartment building or is totally original, don’t expect top dollar. Buyers are discounting even more for “less-than-perfect” houses.
Don’t blame your agent for the softer market
Yes, you probably missed the peak of the market (April and May 2022), but prices are still higher than they were last year (or any previous year).
Talk with your agent about which pricing strategy and home presentation ideas are best for your situation.
Owen Halliday is a realtor who manages the Christie’s-Sereno office in downtown Los Altos. Call him at (650) 492-0062 or email [email protected].
