The fall sales season is underway, boosted by expectations that a cut in mortgage costs is just weeks away and the average price of the American family home is now at an all-time high.
Americans traditionally return to the real estate market after the summer vacations and will transact enthusiastically.
While owner optimism has been in short supply in recent times because of buyers’ affordability constraints, the market will likely respond positively once the Federal Reserve makes its first interest rate cut since last December.
It is expected to drop the rate 0.25% at its September meeting.
If that happens, the record-high average price for an American home – $429,400 – will likely go higher. This latest value, reported by the National Association of Realtors in its report for Q2 prices, represents a 1.7% year-on-year increase.
If you’re looking to sell this fall, then it’s important to double down on your preparations to give prospective buyers a five-star presentation.
No matter the state of the market, we’ll always find buyers for a well-presented home.
Making the effort to get your home perfect will reduce its time on market and achieve the best-possible price.
Owners should not get carried away with their price expectations, though. The market is well balanced but it cannot be described as a seller’s market – at least not yet.
Below, I’ve offered guidance on several mistakes to avoid so you maximize the value of your home.
Overpricing – Work with your agent on determining your optimal price. A Comparative Market Analysis (CMA) will show you the prices achieved for comparable properties in your neighborhood. If you go too high, buyers will back away. As a result, your home will sit on the market, gradually losing value. Your alternatives will be to reduce the price or pull it off the market.
For Sale By Owner – Given the market mood, you could get penalized for an FSBO strategy. Owners trying to sell their home simply do not have the resources that are available to agents. They have easy access to the Multiple Listing Service (MLS), plus a network of agents who represent buyers looking for properties in your neighborhood.
Ignoring problems – Buyers can be turned off by the smallest issues. So, don’t shrug your shoulders and say repairs will be someone else’s problem. Instead, walk through the home and identify any issues, such as leaky faucets and wall scratches.
Reactive mode – Don’t wait for buyers to take the initiative. Consider commissioning a pre-sale home inspection. You’ll head off any potential problems and demonstrate the quality of the home. Serious buyers will get their own inspection, but they’ll appreciate your effort.
Believing first impressions don’t count – They do. Curb appeal is critical. If buyers don’t like the exterior, they’re likely to turn on their heels or keep driving to their next property. Make sure your front yard is tidy with the lawn mown and hedges trimmed. It’s always a great idea to repaint the exterior.
Not doing the basics – At minimum you should declutter and depersonalise so prospective buyers can envision themselves living in your home. You don’t want them to feel they are visitors. The best strategy is to commission a stylist to stage your home to present in the best light.
Skimping on photos – Don’t shortchange your marketing campaign with poor photography. Property photography is a skill, just like food photography. There are techniques to make your home look more spacious and attractive to buyers.