Selling and pricing your home in a cheap money market

Contributor, Ashley McDougal

 

Selling your home is an experience. Some would say it is a great experience while others would say the opposite. No two sellers have the same experience. When you list your home, there are many factors that determine what type of encounter you may have. Inventory of homes, values being up or down, seasons of the year, what your buyer profile is are factors. The most influential market factors that will dictate your sale is the lending market.

The Current Market

For the last decade, we have seen interest rates stay historically low. This has offered more purchase power for the buyers and undoubtedly allowed for recovery from many of the market
flaws we had in the early 2000s. As a seller, low-interest rates certainly broadens your audience of qualified buyers and can often times drive multiple interests, especially in a low inventory market. However, it brings a new dimension of prep when listing your home.

In a cheap money market, the difference between a price of $300,000.00 and a price of $350,000.00 tends to be a spread of about $250-$280 in a monthly payment for a potential buyer but the difference in the house substantial.

With that being said it is more important than ever to be fully prepared and vigilant to the idea that we stand firmly in a market where money is cheap to the borrower.

Get Your Home Ready

Here are some great tips to arm yourself when getting ready to list your home in this environment.

  1. Identify what sets your home apart from your competition whether its with upgrades you have done, additional square footage, location, etc. The best leg to stand on when you are
    selling your home is to know what your home brings to the table that is different from the other homes currently on the market. Your saleability rating can be the one thing
    that encourages the buyer to write their offer.
  2. Shift your frame of mind from selling your home to selling “A” home. While most sellers still live in their home while listing, it is important to have a change of mindset. Create your home as a product to sell. Un-decorate by removing personal items, fix items that need to be repaired to be show ready, touch up paint, start storing items off-site that won’t be used in the next 60-90 days. Create the HGTV effect to allow potential buyers to clearly see themselves living in the home.
  3. Lastly, when selling in a cheap money market you always want to hire the real estate professional. Your realtor will effectively and efficiently market your home. Marketing is very important when selling your home. Gone are the days that just putting a sign in the yard and a listing on the MLS sells a house. Each real estate professional follows a different marketing plan, so
    finding one that fits your home’s needs will be essential.

Understand Your Buyer

The constant in all of real estate is the ever-shifting winds of the market. Staying knowledgeable of the climate of your market and understanding the expectations of buyers in your area are sure steps to getting your home sold fast and for top dollar … even in a cheap money market!