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You probably already know this, but we’ll say it again: things are expensive right now. Inflation affects everything from gas prices to airfare to a restaurant bill. It affects mortgage rates, too: The average rate for a 30-year fixed mortgage recently increased to more than 7 percent for the first time in 20 years.
That’s a stark contrast to where we were at the height of the Covid-era market, when rates dipped below 3 percent. That led to a very competitive real estate market that left sellers in an enviable position: You’ve probably heard the stories about lines around the block at open houses, buyers accepting all contingencies, and homes selling for rock bottom prices. above list prices.
So with rising rates, do DC area agents see a turn to a buyer’s market?
Not quite. If anything, it has moved from a seller’s market to a more balanced one, says Kate Bohlender, a real estate agent for Compass. “One of the most important things for buyers and sellers to realize right now is that we are not in a bear market; we are almost in a normal market,” she says. “We’ve gotten so used to the craziness of the last two years.”
Robert Hryniewicki of HRL Partners at Washington Fine Properties agrees: “We are moving from a market that was hyper-charged, where you would put a listing up for sale on a Thursday and by Tuesday you would have 12 offers,” he says. “Now, if you have come to sell, it can take two or four weeks, even, for a contract to materialize. That’s normal.”
This means that it is no longer the norm for sellers to put their houses on the market as-is and sell them within a few days. The same goes for buyers who have to forego all contingencies and submit aggressive offers.
With the return to a more normal market, what should sellers do when listing their homes today? Nothing crazy, the agents say, but it’s a departure from the past few years: They actually have to make an effort, you know, like they used to before Covid.
You’d be forgiven if you’ve forgotten what a home for sale looks like in a more typical market. Here are real estate agents’ tips for today’s sellers:
Enter with reasonable expectations
Gone are the days of buyers exceeding asking prices, says Ericka S. Black, a Coldwell Banker broker. When pricing your home, it’s important to adjust your expectations to the current market. Look at what comparable homes near you have sold to in the last two months, Black says, not eight months ago. And when setting a price, you also have to keep in mind that mortgage rates are nearly double what they used to be: someone who can afford a $700,000 home at 3 percent might not be able to afford it at 7 percent. hundred.
“There just has to be some give and take,” she says. “It’s not that sellers don’t make money. They just aren’t going to make the exorbitant amount they were thinking. They will get a more realistic number based on market conditions.”
Position your home in its best light
This may seem like a given, but it wasn’t necessary in recent years. “Six or eight months ago, it didn’t really matter what your house looked like; you still had all that demand,” says Hryniewicki. “So getting back to normalized market conditions is very important.”
The most crucial part? The exterior, says Bohlender. It is the first photo you will show in your listing so make sure it has curb appeal and be prepared for some gardening or painting if necessary. “That is worth the money.”
And before the showings, take care of the obvious: make sure your home is clean and smells good. Don’t forget little things like washing the windows and making sure all the bulbs have the same warmth, Hryniewicki says, that makes all the difference.
Bohlender recommends asking your agent if they will cover preparation costs, if necessary. And while it’s not crucial that she rush to renovate the kitchen or bathroom, she does suggest refinishing the floors or painting the walls if they’re looking worn.
Choose your agent carefully
“Select the company that offers the most to sell,” says Black. Consider how an agent will market a property – do you have a strategy for images and virtual tour? Are they well connected with an expansive network? Do you offer things like staging? These things matter more now in today’s market.
Prepare to negotiate
“It’s a more level playing field,” says Bohlender. “Buyers are asking more from sellers than in recent years, so you have to be prepared for anything.” That means full home inspections are a thing again, and sellers need to be prepared for buyers to ask them to make repairs or help with closing costs.
Bargaining could also come into play, he says Hryniewicki. Sellers, expect buyers to agree to keep your home as-is, but may ask for a lower price; Alternatively, they could offer to pay full price, but ask the seller to fix anything that comes up during the inspection.
Features and home editor
Mimi Montgomery joined the Washingtonian in 2018. She has written for Mademoiselleosaki, Garden & Gun, Outside Magazine, Washington City Paper, DCist, and PoPVille. Originally from North Carolina, she now lives in Del Ray.
Source: news.google.com