Many sellers in today's housing market are feeling the winds of change. And they kind of stink for some. The days of bidding wars moments after listing a home are behind us, at least for now. Today's housing market has traded frenzied activity for a more balanced playing field. But fear not sellers, in this blog post we're diving into the strategies you need to know about to stand out and create success in the current market.
Why Are Homes Taking Longer To Sell Today?
Mortgage rates hit the highest level in 23 years in October, which cooled homebuyer demand. This increase in rates priced many would-be buyers out of the market and those that remain are taking a more calculated look at their options. This marks a substantial reversal from the pandemic homebuying frenzy, when interest rates made homeownership attainable for a larger portion of the population.
More Sellers Offering Freebies to Attract Buyers
More than one-third of home sellers today are offering concessions to buyers to offset the rising costs associated with higher rates and make their homes more attractive. Sellers are handing out freebies like making repairs and credits toward closing costs and even interest rate buy downs. Buyers have good reason to be choosy - it's really expensive to buy a home today, so they want to make sure they find the right one. Buyers have also become increasingly likely to back out of deals if they don't get the concessions they want.
Price Drops and Concessions Becoming More Common
Some sellers are lowering their prices in addition to offering concessions to attract buyers and sell quickly due to major life events. With inventory still low in many areas, concessions likely would be even more common if competition wasn't still fierce for some homes.
Advice that I am giving to my sellers is don't rush to lower your price. Selling today takes a bit more patience, time and creativity. Instead you may wind up netting more proceeds by offering concessions instead of dropping your price - a strategy that creates a win for both buyers and sellers.
Offering concessions instead of making big price reductions may net sellers more money in the big picture
Get Creative to Stand Out in Today's Market
The key for sellers and their agents is to get creative with concessions and pricing to find a buyer willing to pull the trigger. Open dialogue and a willingness to work together is the key to success. Don't get discouraged if your home sits a little longer than expected. Implement some new strategies and make sure they are communicated and marketed clearly. Not all buyers and their agents understand the nuances of overcoming today's rates with these offerings. And remember, the market always moves in cycles, so patience and creativity are key.
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