According to Inman News, mortgage originations are up for the last three weeks in November as interest rates are easing a bit. This good news means that there are buyers out there, they just need to figure out how to finance the transaction. Creative mortgage programs are beginning to pop up that are helpful. Sellers are also helping with offers for credits for closing costs and making some repair negotiations. We have not seen such concessions for a while.
A recent Realtor.com survey concludes that 95% of sellers nationwide who sold their home in the past year got more than they paid for it.
To appeal to Online home shoppers, Ziillow.com suggests sellers need to do things that grab the attention of these buyers such as pricing their home competitively and making their listing attractive.
These are statistics and reports from industry leaders who are reporting past information and/or projecting into 2023. Folks tend to pull back when they feel pinched by the market, the stock market, or just their own budget. In a home sale, this can mean the difference between sold or unsold.
Predicting where the market will go next year is anyone’s guess. If you are going to sell, be realistic about it. Listen to the experts about value and heed their recommendations. They know what buyers are saying and what they are buying, which brings me to the following advice:
DON’T SCRIMP ON THE BASICS
1. Do not scrimp on a Realtor. There are things that a Realtor does that can add to your bottom-line including strategy, contacts and negotiation.
2. Do not scrimp on home prep and staging. This is often an easy target for cutting out of the budget but realize that the majority of buyers look for the flaws first in order to talk themselves out of liking or buying your home. If you do not prepare the home, fix the squeaky door or that nonworking lock, replace the microwave, etc., they will notice.
3. Do not scrimp on photography. Prepare for the photographer. The photos will only show what is there and a good photographer can adjust lighting and angles, but not the garbage can or cat box, torn screen etc. Photographs are the drive-by of today. They get the buyer to walk through the home. If after viewing the photos they do not fall in love, you are off the list without even realizing it.
4. Do not quibble. If there is a light fixture, a fireplace screen, or anything in the home that has sentimental value and you want to keep it, either remove it before going to market or risk it becoming a dealbreaker for the buyer should they also want it, and you say no. A Redfin survey says the cancellation rate of real estate contracts is at its highest rate on record, around 20% in some cities, and an average of 17.2%. Yes, a buyer will walk away over what appears to the seller to be a minor thing. Do not invite that risk; the next buyer might be less generous with their offer or terms. Also, be as realistic as you can about changing contract terms after its agreement.
Overall, things may be improving as the rate lets up a little. What will happen next year is anyone’s guess. But sellers still have to sell, and buyers want to buy. People move up, move down, relocate, divorce, marry and all of those can generate a real estate need. That is the good news behind all the statistics.
