When the Pandemic hit hard in March 2020, the economy paused. The real estate market also paused as Sellers and Buyers complied with the Stay at Home ordinance and social distancing guidelines. As the months passed, we find ourselves sliding into the month of August with a Spring real estate market is Hot! Hot! Hot!
Many Sellers are surprised that their homes are flying of the shelf at higher prices than last year. So let's take a step back and understand what is going on in the market and how a Seller can leverage the market to get the highest price for their home.
Let's start with a bit of history. Over the past two years, there has been a shortage of home for sale. The shortage of homes for sale means that seller are reluctant to sell if they have "no where to go". In addition, the shortage drives prices up and many sellers can't find the lesser priced home to downsize or to retire. The Pandemic has exasperated the shortage by further constricting inventory for buyers. For example, if we took 40% of the buyers out of the market due the fallout of the Pandemic; there is only enough homes available to sell to 50% if the remaining buyers.
Today, interest rates are below 3%, the 10 Treasury Yields are deflating a bit and buyer demand is off the charts! Even with the large number of pandemic induced unemployment numbers, buyers that are able to buy are buying. So what does this mean for Sellers? It's time.
5 Ways Sellers Are Getting The Highest Price
1. Prepare and Showcase Your Home
Showcasing your home in its best light is one of the most important tasks that a serious seller must, must, must do inside and out. Yes, buyers are clamoring for your home; however, do you want an OK price or do you want the highest price for your home? Here are just some of the must do's - fresh paint, replace hardware on cabinets, landscape to create a "most beautiful" curb appeal, hire a cleaning service for top to bottom sprucing up, change the air filter, clean the pool, shine up the marble floors, resurface the tub, grout the shower tiles and light a beautiful scented candle. The home should feel fresh and clean.
2. Review the Photos for Your Marketing
Marketing is very important during the first two weeks of active marketing. The photos of your home will entice buyers to see your home and already anticipate paying a higher price than other homes. As a Realtor for over 20 years, I have always hired a professional photographer to capture the the best shot of each room. An I-phone is just not the same. A home that is marketed correctly will be featured over 100s of digital platforms and print. There is no excuse for bad photos.
3. Price Right
The old adage is that Sellers want a super high price and buyers a super low price. The truth is that the market price is set by buyers comparing one home to another based on the features that the buyer most desires. As a Seller, it is so important to price your home to attract the most buyers who are willing and able to purchase at the market price. The National Association of Realtors states that if a home is priced 5% higher than market, only 50% of the buyers will see the home. No Seller wants to lose 50% of possible buyers for a home.
4. Hire the Right Realtor
Not all homes are the same and not all Realtors are the same. Your home and you deserve the best Realtor. Someone that has integrity, experience, professionalism and tenacity to get you everything and more. Interview at least 2 agents and look for qualifications, marketing, negotiation and brokerage affiliation. All are important to get you the highest price.
5. Stay Safe
Be sure to keep your home sanitized, clean and provide a welcome basket with hand sanitizer, masks and gloves. Yes, buyers should have their own but sometimes an extra items is needed. When buyers view the home, simply step outside to abide by the CDC Guidelines. Your Realtor should provide you with the CDC Guidelines and post those guidelines at the home and convey to other agents.
2020 is a different world. Selling and Buying is still one of the areas of our world that is explosive with activity. If you are thinking of buying or selling, let's chat. It is a great time for real estate sales!