The tables have turned across the U.S. as the real estate market has shifted from a seller’s to a buyer’s market, which means that more homes are for sale than there are buyers to purchase them. Gone are the days of listing a home and it selling overnight simply because of its mere existence, as if it were the last home to be had. In many parts of the country, buyers had felt lucky and accomplished just for winning a bidding war for a property.
Those days are over and now sellers have to do everything perfectly, from initial pricing to marketing strategy, in order to sell their properties on a reasonable timeline. But not everything about this shift is unfavorable for sellers and their agents.
There are a few things sellers can do to ensure the buyer's market doesn't get the best of them. This new set of rules is critical to follow in any market as it forces both sellers and agents to think carefully about all aspects of the transaction process, and the importance of getting it right the first time around.
Here are five details to focus on while you prepare your house to sell in a buyer’s market:
- Attitude Adjustment
Understand the comparable recent sales and active listings in your area, and work with an agent to price your property accordingly. A buyer’s market is not the time for aspirational pricing. Only unique properties, which are really outliers, fly off the shelf these days. Buyers are looking for deals and they rarely bid at asking price.
When pricing, it's best to factor in a cushion for negotiating. Price up slightly, but not out of the range to lure in buyers. It's important to note that, as a general rule in this market, underpricing is not recommended as a strategy to drive up demand. Underpricing works best in a seller's market, when multiple bids can drive a price up. But when buyers have the upper hand they're rarely bidding properties up, and you may end up with offers lower than your bottom price.
Beauty is in the eye of the beholder, but not always in the eye of the buyer. This can be a hard pill to swallow because you may not only need to freshen up your decor and paint, but the work also costs you money at a time when you're looking to make money, not spend it. Make that first impression count. Buyers want properties that look clean, fresh and uncluttered.
Make sure the online listing photos and marketing materials are of the highest caliber and quality, and appeal to the widest pool of potential buyers. The photos are your calling card, and the deciding factor when agents and customers are choosing whether to view your property. You’d be amazed at how many bedroom photos show wrinkled comforters and how many kitchen counters are overcrowded with appliances and decorative bowls.
Most importantly, work with your agent to review and plan a comprehensive marketing strategy that best suits your specific property, which might encompass a combination of a custom video tour, social media advertising campaign and print or digital advertising.
Make your property accessible to buyers within reasonable days and times, which often means being able to make yourself scarce during evenings and weekends. Remember that you want to make it as easy as possible for interested buyers to come and see your property. After all, they are the customer and you want to make it the most pleasant experience, not a hardship. This is why most agents schedule open houses in the morning or early afternoon on Saturdays and Sundays.
[Read: The Guide to Selling Your Home]
Get real. Listen and educate yourself on current market conditions in your neighborhood. Ask your real estate agent for recent comparable closings and active listings, and size them up to market highs. It’s also very important to take into account the number of days on market. In New York City, for example, the median time from a listing hitting the market to contract signed increased to 117 days in February 2019, nearly a month longer than in February 2018, according to a report from New York real estate information company StreetEasy.
If you don’t like the hand the current marketplace is dealing, and if you’re not in a hurry to sell, you may want to consider positioning your property when market conditions are more favorable to sellers. It's critical that the seller has realistic expectations and is on board with the new playing field if he or she wishes to have a quick and profitable transaction.
The real estate market has pressed the reset button. Now more than ever, sellers cannot leave anything to chance if they want to get top dollar for their properties in this new arena. In the end, consider these guidelines as best practices for any market, up or down. Putting your best foot forward, pricing correctly and marketing your property with excellence should always be the gold standard.
Time your listing for a fast sale.
Selling your home quickly not only allows you to move on with your life, it also means fewer days of keeping your home in pristine condition and leaving every time your agent brings prospective buyers for a tour. Real estate information company Zillow crunched data from 2008 to 2016 and found the optimum time to list a home for sale was on a Saturday between May 1 and 15 – at least looking at national numbers. Homes listed during those times sold nine days faster and for 0.8 percent more than the average annual home price, according to Zillow’s analysis. In more moderate climates, the optimum time came in March or April.Timing isn't everything when selling your home.
Timing isn't everything when selling your home.
As you list your home, remember those numbers are historical averages and this spring may be different. "With 3 percent fewer homes on the market than last year, 2017 is shaping up to be another competitive buying season," Zillow chief economist Svenja Gudell said in a news release. "Many homebuyers who started looking for homes in the early spring will still be searching for their dream home months later." But how fast your home actually sells, and at what price, depends on a lot more factors than when you list it. A National Association of Realtors survey published late last year found that the average home was on the market a month in 2016, down from 11 weeks in 2012.
Here are 10 secrets to selling your home faster, no matter when you list it.Take great photos.
Take great photos.
According to an NAR survey, 51 percent of homebuyers found the house they eventually bought online and 95 percent used the internet in their home search. If your listing photos don’t show off the features of your home, prospective buyers may reject it without even taking a tour or going to the open house. Hiring a professional photographer and posting at least 30 photos of your home, inside and out, is a good way to attract a buyer.Clean everything.
(People Images/ Getty Images)
Nothing turns off buyers like a dirty house. Hire a company to deep clean if you can’t do it yourself. That includes washing windows inside and out, removing any clutter and cleaning the garage, basement, baseboards, ceilings and closets – and anywhere else the buyer can see.Depersonalize the home.
Depersonalize the home.
Remove all your family photos and memorabilia. You want buyers to see the house as a home for their family, not yours. Remove political and religious items, your children’s artwork (and everything else) from the refrigerator and anything that marks the house as your territory rather than neutral territory.Let the light in.
Let the light in.
People love light and bright, and the best way to show off your house is to let the sunshine in. Open all the curtains, blinds and shades, and turn lights on in any dark rooms. If your house is on a lockbox and your real estate agent isn’t going to be there to open blinds and turn on lights before showings, leave everything open when you leave for work every morning.Make your home available.
Make your home available.
Buyers like to see homes on their schedule, which often means evenings and weekends. Plus, they want to be able to tour a home soon after they find it online, especially in a hot market where they're competing with other buyers. If your home can be shown with little or no notice, more prospective buyers will see it. If you require 24 hours’ notice, they are likely to see and perhaps choose others homes first.Set the right price.
Set the right price.
No seller wants to leave money on the table, but the strategy of setting an unrealistically high price with the idea you can come down later doesn’t work in real estate. Buyers and their agents have access to more information than ever, and they know what most homes are worth before viewing them. A home that’s overpriced tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it. Set the right price from the beginning, otherwise you might cost yourself precious time and money.Remove excess furniture and clutter.
Remove excess furniture and clutter.
Nothing makes a home seem smaller than too much big furniture. Rent a PODS self-storage container or a storage unit and remove as much furniture as you can. It will immediately make your home seem calmer and larger. Remove knickknacks from all surfaces, pack them away and store the pieces upon which you displayed them. Take a minimalist approach to books, CDs, throw rugs and draperies, and clear off your kitchen and bathroom countertops, even appliances you normally use. If you can remove half the stuff in your closets, that’s even better, because it makes the home’s storage space look more ample.Spread the word.
Spread the word.
Your neighbors are often the best salespeople for your home because they love the neighborhood. Make sure they know your home is for sale and are invited to your open house. Share your listing on social media and ensure your agent does the same. Put flyers on neighborhood bulletin boards and share the news on neighborhood email lists and Facebook groups. If you have the skills, make a video to tell the story of how much you love the house and the neighborhood and put it up on YouTube.Repaint in neutral colors.
Repaint in neutral colors.
A coat of paint will do wonders to freshen up your home, both inside and out. This is the time to paint over your daughter’s purple bedroom and cover up your red dining room accent wall. You want to create a neutral palette where buyers can envision putting their own personal touches. Warm neutrals such as gray, taupe and cream are better than bright white.Spruce up the front of your home.
Spruce up the front of your home.
You’ve heard it 100 times before, and it’s still true: Curb appeal matters. You don’t get a second chance to make a first impression. A new or freshly painted front door, new house numbers and a new mailbox can breathe life into your entryway. Fresh landscaping and flowers in beds or in pots also enhance your home’s first impression. Trim trees and bushes, and pressure wash walkways, patios and decks. Leave the outdoor lights on, too, because prospective buyers may drive by at night.Read More
After earning a degree in Economics from The University of Pennsylvania, Arriz worked in wholesale sales for several top fashion designers in New York City, including Calvin Klein and Ralph Lauren. While her business sense, tireless work ethic and integrity fuel her success, most importantly, she believes wholeheartedly that one’s living space should be not only an investment, but also a home and sanctuary.
Arriz has resided on the Upper East Side for 30 years and currently lives with her husband, three children and her miniature schnauzer, Lucy.
Devon Thorsby | June 5, 2019
Homeowners should not fret, as long as they're prepared for the possibility of a downturn.