Resetting Home Price Expectations
Home price expectations are not set in stone. The real estate market has definitely shifted in 2022. We’re still seeing a very low housing inventory, which is beneficial to home sellers who have a great property that is properly staged and marketed to sell. However, inflation and rising mortgage rates have slowed down buyer demand. This has left some home sellers in a tough situation.
Changing Market Conditions
In the past few years, low mortgage rates and low housing inventory were driving a very fast-paced market. Houses were pretty easy to sell and home prices were going through the roof. As interest rates have risen, the rate of appreciation has leveled out. Home prices have even been coming down in many U.S. real estate markets. Many sellers are not prepared for this. They waited too long and missed the peak of the market. Now, they are having to rethink their pricing strategies.
The good news is homes will still sell in today’s market. Well-prepared home sellers may still be able to get top dollar. This will require investing time and money to get the house ready. We’re talking about making repairs and upgrades. We’re also talking about professional staging and marketing, along with hiring a good real estate agent to maximize the listing’s exposure and find the best buyers. Lastly, you have to set an attractive home price. If everything goes right, you might still get a great price for your home. Just don’t expect a bidding war and super fast sale like you would have experienced a year or two ago.
Resetting Your Expectations Regarding Home Price
Most sellers will have to reset their expectations to some extent. You need to accept the fact it may take a little longer to sell as you wait for the right buyer to come along with a good offer. Or, you may need to be willing to lower the selling price. Home prices just aren’t as hot as they were in recent years. They are still very high by historic standards, though, so you could still be in excellent financial shape even with a strategic price decrease. Lowering the asking price can attract more potential buyers and will likely lead to a quicker sale.
Other Home Selling Solutions
For those home sellers who may not have the time and money to invest in a traditional home sale, there are other options to consider. A fast cash home sale may be a better solution, especially if you are considering a price drop anyway. It’s true you won’t get as high a selling price with a cash buyer (typically a real estate investor looking to renovate the property and then resell it or rent it out). However, the price difference may not be as big as you think when you are considering a price decrease. Plus, you can avoid excess out-of-pocket expenses like closing costs, real estate agent commissions, repairs, etc. Cash investors are ready to buy your house in as-is condition and they will generally cover all the closing costs.
A cash sale can be a good option if you are looking to sell fast and willing to accept a little lower price. This is especially true if your home needs a little work. These are the properties that tend to sit on the market longest and end up requiring larger price decreases. You may be better off selling now to a cash buyer.
It is important to explore all your home selling options and understand the current market trends that could affect your home sale—and home prices, in general. To get started, contact PropertyLark today. We can get you a fair cash offer within 24 hours or help you look into other home selling or financing solutions.