What are your options today when selling in the current real estate market? Buyers, now more than ever, need to be persuaded to buy. With interest rates rising and no end in sight, buyers are concerned about affordability and are worried about overpaying. We are seeing housing prices stabilizing. Buyers are attracted to properties that are “priced right.” We are excited for sellers since the inventory is still favoring them. Unfortunately, many sellers think reducing their prices sends the wrong message. Inventory is growing and will continue to grow as we enter 2023. That is always a win-win.
As we all know, higher interest rates mean lower qualifying mortgage amounts and lower buying power for buyers. Some buyers looking to purchase are holding back, yet now is a
great time for them to buy. The frenzy of the covid market now allows for more regular interaction between buyers and sellers. There are lower instances of multiple offer situations, which create a lot of stress for the buyer. The buyers and sellers have more opportunities to negotiate terms and conditions into the contract allowing for a more balanced transaction.
Multiple offers still exist. These homes tend to be highly upgraded with recent improvements, including new roofs, hurricane impact protection, and added amenities. Move-in ready is still a significant factor for buyers. Lower initial offers, often called lowball offers, are back in play, not that this is a strategy I would recommend, as it tends to add a layer of emotion that often prevents a deal from getting to an amicable conclusion. However, we are seeing a return to normalcy regarding days on the market and closing prices below asking. The tables have changed, and sellers now need to adjust and work to get more realistic and move back to Power Pricing their homes in what I like to call the “Striking Zone” as inventory grows throughout our area here in SE Florida, as well as the country in general.
New strategies to stand out as a Seller:
Power Price your home to sell in the striking zone: This can be a winning strategy, as most buyers are savvy today; some are laser-focused on price per square foot and/or upgrades, prime location/neighborhood. Power pricing is at the top of all buyers’ searches while pricing aggressively. The key to selling a home is to price to stimulate activity ― no longer to test the market. Attempting to set a price that will create a lot of negotiating room may result in you never getting the chance to settle in the first place. It’s all about being smart when pricing your home.
Prepare your home for sale: Pre-inspect and fix any issues before you list. Also, plan work on your home with the best Return on Investment. Today's savvy buyers are still willing
to pay more for updated homes. Or consider an allowance for decorating/renovation to be paid at closing.
Seller Concessions: Offer to pay for Buyers closing costs or a portion. Seller-paid closing costs or concessions are money paid toward the closing. Generally, this money is applied to
the buyer’s closing costs. Seller concessions allow you to roll the closing expenses into your home loan.
Buydown program, available through Guarantee Rate Affinity. The Buydown program has two options. The first option is a temporary solution where the seller helps the buyer
purchase by buying down the interest rate for a buyer in the first year at 2% and 1% in the second year. The second option is a permanent solution where the Seller helps the Buyer lower their interest rate for the life of the loan. This can help a buyer buy down the mortgage rate and lock in at a lower-than-going rate. It will be paid at settlement and flows through the title company. Often, the process counts points under the seller-paid costs. This can impact the buyer's payment more than the price.
Offer to pay Homeowner Association fees for 6-12 months or prepay taxes. Look into whether your sellers have an assumable mortgage and check the requirements. Although rare, this may be rare, and it is something to advertise in the description.
What is very clear to me is the opportunities for buyers and sellers who react correctly to the market with expert guidance. The best opportunities are always in a changing market for those who seek good counsel and move quickly to take advantage of the opportunities the market presents. Today, the opportunities are on both sides of a property sale.
Rose Sklar, Coldwell Banker Realty. Team founder Sklar Team with offices in Weston and Fort Lauderdale.
- #1 Coldwell Banker Team in Broward County 2018, 2019, 2020 and 2021
- Ranked #1 Agents in the City of Weston for 14 Consecutive Years! 2008-2021
- Coldwell Banker Residential Real Estate SOCIETY OF EXCELLENCE 2015-2021