Two and a half years ago, mortgage interest rates were at historic lows, and demand was high as buyers fled highly populated areas during the COVID pandemic. Home prices soared. Beginning in March 2022, interest rates have climbed over 4%, making these higher home prices unaffordable to an increasing number of buyers. So, today’s sellers like you are asking “How to sell my home”, and more importantly “How to price my home” to attract prospective buyers.
Set Realistic Expectations
By June 2022, the national homebuying frenzy had slowed considerably causing James McGrath (broker and co-founder of Yoreevo) to comment in REALTOR magazine “Sellers could do no wrong over the past two years and have become overconfident. They could take the price their neighbor just got, bump it up 5% and still have a line out the door. But with the surge in mortgage rates, those days are over.” Even when the housing market begins to soften, people tend to hold on to the original price they had in mind. Don’t fall into this trap. Price your home competitively, and you’ll be well positioned to get a good deal.
Review Competitive Prices
The average monthly payment on a 30-year, $300,000 mortgage climbed from just under $1,300 to over $2,000 in the past 9 months. It’s important to review recent sales of comparable properties in your area with your agent. Only then can you set a price that will attract offers. Once the asking price is settled it’s time to position your property for a timely sale.
Prepare for Visitors
REALTOR magazine also advises that you get your house market-ready at least two weeks before you begin showing it. Make all your repairs, and then do a deep clean (or hire a cleaning service to help). Remember, even though your furniture and belongings are not for sale, they need to be tidy and clean. Make double sure your house smells good and looks like people enjoy living in it.
Be Flexible for Showings
It’s understandable that spur-of-the-moment showings are disruptive. Keeping your home constantly ready to show may also be a challenge, but the more accommodating you can be, the sooner you will find the right buyer.
Be Ready to Respond to Offers
Set the price range and terms that are acceptable for you to sell your home. Work with your agent so you are both clear about what kind of offers you’re comfortable with. You both must know what price you’ll accept before entering negotiations with a potential buyer. Finally, if you home has been on the market for more than a month and you have not received an offer, you may need to consider lowering your asking price if you really want it to sell.