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!