Selling in Today's Market

It may feel like in recent years, the global real estate market has gone crazy. The truth is, it is perfectly sane, you just need to consider it through the lens of market economics. Among other things, the aging housing inventory, coupled with significant slow down in new developments during the pandemic, caused the supply side to shrink. At the same time, growing population, and influx of "stimulus" money made the demand explode. Real Estate, as any other market, does not like imbalance, and responded with rising housing valuations to restore order in the Universe.

But things are changing. Limitations, previously imposed in a bid to stop spread of the pandemic, have been lifted and new developments are popping all over. The supply side is growing fueled by sellers lured to the market by record high valuations. Mortgage rates are rising, making it more expensive to buy a house, which tampers buyers' appetite. Market is stabilizing, but don't expect it return to the pre-pandemic levels any time soon.

The slow down is real, and it will only be more visible in the later part of the year. In our region, it's a natural cycle tied to the changing seasons and school years. Typically, the real estate market activity is slowing in the fall, goes to almost hibernation during the winter, only to awake from it in the spring starting a new activity season that lasts through the end of summer. However, market imbalance is still very significant and will likely affect that natural cycle.

If you've been considering selling a house, don't be discouraged by the slow down. It is still a very strong Sellers' Market, and you can expect the higher valuations we've been experiencing nationally, and in our region, to stay around for a while. But it is crucial that you consult with an experienced and knowledgeable real estate agent. Discuss your expectations, and together come up with a game plan to sell your house quickly and for top dollars.

Pricing your house right on the onset will make the biggest difference. If you price it too low, especially with inadequate marketing, you are at risk of attracting the wrong type of buyers. There are many investors on the market looking for inexpensive properties, that they could improve and make a profit. Underpriced properties are on their radar screen, so you can expect that it will only attract many "lowball" offers. In some cases, with aggressive marketing such strategy may attract quality buyers who will realize the hidden potential of your house and offer prices above asking. If you attract enough of them it may even trigger "bidding wars". But that's a lot of "ifs".

On the flip side, if you price your house too high, you may fail to attract any potential buyers at all. And those who will show up to see the house, will have high expectations, and likely leave disappointed. Lowering the price at that point will not help. Houses sitting on the market for too long, and especially houses with dropping asking prices often develop a "stigma", buyers' conviction that there "must be something wrong with that house".

Real Estate is a numbers game. Your goal as a Seller is to attract interest from as many potential buyers as possible. In today's imbalanced market, it is not difficult at all. High interest results in multiple offers and fuels competition among buyers. If it's priced right, it will sell quickly and for top dollars. But to find that "right price" you will need to stow away your bias and rely on your experienced realtor, who isn't emotionally attached to your house.

While proper pricing of your property is statistically the biggest contributor to a successful real estate transaction, it is not the only element. An experienced real estate agent will develop a holistic marketing plan for your property taking into account your objectives and market conditions. If your goal is to sell for top dollars, a good realtor will help you prepare the house, suggest improvements that need to be done, and not list the house until it is ready.

If you want to be taking part in the real estate market, either as buyer or seller, it's important to understand it's rules and forces driving it's dynamics. Just like with your health and legal matters, it's always wise to enlist the help of a professional. You will benefit from their expertise, and eliminate the risk of a botched deal. Interview your realtors, ask them questions, look at their reviews, look at their past and current listings. If you do your due diligence choosing your realtor, even in this cooling off market, you will sell quickly and for top dollars!