When Real Estate agents shout from the rooftops that we’re in a sellers’ market, we often look at each other and cringe. Here’s why:
Some Real Estate agents believe that a sellers’ market means sellers can jack up the price of their homes and still sell. However, this is the downslide we’ve watched time and time again in brokerages all around town. When the homes don’t sell (because the value of the home doesn’t match up with the selling price), sellers panic and ask their Real Estate agent to lower the price. This is what we call The Slow Death. A little at a time, agents continue to lower the price of the home over weeks and months until, eventually, they hit the range of the home’s actual value. But by this point, the home has been on the market longer than it needed to be and potential buyers are wondering what’s wrong with it!
Why has it been on the market for 3 months? Why have the dropped the price so many times and so significantly?
Put simply, just because the economy is good doesn’t mean the sky is the limit. You can and will sell your home more quickly in a sellers’ market, but only if you list it at or near its true value!
Another mistake we watch sellers and their agents make during a sellers’ market is they assume they don’t have to upgrade or finish home improvements prior to listing. This is simply not true! Change out the light bulbs, have the home professionally cleaned, and get the yard into beautiful shape! Upgrade the fans, doorknobs, and faucets. Repaint, even re-carpet if you need to! (And please, as an aside, take into consideration how your house smells.)
Also, it doesn’t matter how beautiful or spacious a kitchen is – if it’s filled with old appliances, buyers are going to notice! They’re going to remember that the AC is 15 years old and the roof needs some work. They can see that you’ve let the back yard go. Again, even in a sellers’ market, buyers probably aren’t going to scoop up a property if they have to replace everything in it within 5 years!
There is a lot of information that Real Estate agents leave out of that statement “it’s a sellers’ market.” Sure, if you want to sell your home, now is a good time. There are plenty of buyers available and the economy is doing fairly well. But i our combined 30 years in Real Estate, we’ve watched the ebbs and flows just like everyone else. Now is no different! If you want to sell your home:
1. Finish home improvement projects.
2. Complete any upgrades you can afford to do.
3. Price it according to market value.
(Spoiler alert: Your Real Estate agent should be able to help you make solid decisions on all three of these points and recommend that most effective, least expensive ways to improve your probability of selling. That’s their job!)
If you’re thinking of selling, please give a Round Table Realty agent a call. There’s more to selling your home than just getting it listed, and we’re so happy to help!