If you think about selling your home in the nearer future, pricing it correctly for a market that is changing is crucial for success.
Here is what is changing:
Interest Rates: While they are still low, the rates are inching up. As of today, Bankrate shows an average interest rate of 4.68% for a 30 yr mortgage. In January of 2017 it was 4.05%. This affects the affordability factor for a buyer negatively. They can buy less house at the same monthly payment.
Inventory: Nationwide the inventory has mostly caught up to the demand. While all markets are local, Corvallis is seeing quite a bit of development coming up which will put pressure on existing homes in similar price ranges.
Season: The frenzy of spring and summer is over, overall our market is slower over the fall/winter months.
Less Bidding Wars: Buyers are not quite as eager as they were just a few months ago. While a well prepared and correctly priced home still sells well and fast, the times when you could just take your own poor pictures and not take care of repairs are over. More than ever, preparation, upfront repairs and a perfect 10 presentation are what sells.
When you receive a listing presentation from a qualified and experienced broker they should now adjust the numbers from 6 months ago to a changing market. If you see comparable sales from April/May/June keep in mind that those reflect the market as it was at that time. Anticipating that nothing has changed and you can price accordingly is a huge mistake. The “Days on the Market” are growing longer and you do not want your property to linger. The best price you will always get in the first 2-3 weeks. After that you will often see downward adjustments. Thus pricing according to the current and not the past market is paramount.
We still see homes coming up that are priced out of the market, poorly prepared, with less than stellar photos. Ultimately they will often sell for less than they could have, had they been priced correctly and prepared well to begin with. Skimping on paint, cleanliness, and carpet replacement will come back to bite sellers in the months to come. Professional pictures are a must. Don’t allow for anything less.
Shop around, get opinions, listen to your broker and then make wise decisions. You will still sell and sell well!
On Facebook, Twitter, Snapchat, Instagram, or wherever you are active on social media, sharing too much is never a good idea. Especially when you are selling or buying a house, sharing what is happening can be very detrimental to your transaction.
“Got a great offer, would have taken much less”. “Have done a lot of work without permits, hope the buyer never notices”. “We are so happy that we got this house, would have paid so much more”.
These are all quotes from Facebook. Why would somebody think it is a good idea to share, before closing, that you would have paid more for the house? When this buyer is going back for repairs, guess what a seller, finding this quote, will do. Give them what they want? Probably not.
In Seller’s Property Disclosures a seller is obliged to tell the truth. Not doing that and then announcing that on Facebook…what can I say?
In this day and age we are used to sharing information a lot more than even 15 years ago and the audience has changed significantly from the personal circle of friends you just talked to before. It is so easy to just write and hit “post”. The number of “friends” that reads (and shares..) is now so much bigger and so much more consequential.
Selling your house because you got a new job and need to move asap? Want to buy a new one and need the old one to sell pronto? Urgently need to buy a single level because your ailing parents are moving in with you and cannot do stairs?
If your future buyer or seller reads this on FB your negotiation position has just gotten so much worse. So many people do not have their privacy settings under control and the world can read their antics. Even with great privacy settings, nobody can avoid that a “friend” shares and so what you thought is told to just a small circle is now open to the world and you can never retrieve it. We can now find out so many things about anybody that it is a miracle that not more transactions are lopsided. Pretty much every time people are curious they will “google” that other person. What will they find out about you?
So have your profile, your sharing, your information, your bio, your photos (!) under control and check them regularly. Once you want to buy or sell it will put you in a much better position.
….but sometimes a fence is not enough. Here is a recent request from somebody trying to buy an acreage property in our area:
“I want to be able to ride ATVs and have some chickens and a rooster”.
When we hear a request like that at least my first thought is “who wants that neighbor?”. Most people want to live in peace and (preferably) quiet. And while it is understandable that a buyer might think that 10 acres give them the right to do whatever they want, there are still others around. And you will not endear yourself to them thinking only of your own fun.
ATVs are a particularly bad idea in our immediate area. Who wants to sit on their porch and have a nice dinner, listening to an ATV race across the street? The rider is having fun – at other’s expense.
Other issues are noisy animals (a rooster is heard for long distances and starts as early as 3:30am in the summer) or taking up a hobby like drumming. While you might enjoy that, think about the guy next door.
Still want that ATV ride? Take it to an area designated for it or buy property where you do not disturb anybody or maybe even have like minded neighbors.
Want that rooster? Send out an email to your neighbors and ask if they are ok. Consideration goes a very long way!
Drums, trumpet or something similar? Buy a set that you can plug in and be the only one hearing it.
There are solutions for all these activities that will ultimately make for good neighbors. And you never know when you need them.