The market has changed I am sure you are all aware of that. We saw the market change quickly from a hot seller’s market 1st quarter of the year and we are now in a Normal Market. The number of homes that failed to sail during the 1st quarter in Los Angeles and Orange County total to only 1768 homes. In July ALONE, the number was 778! We definitely are seeing a noticeable increase in the number of homes that failed to sell. What do you do when you or someone you know are in that situation?
There are always more homes on the market for sale than there are ones being sold. Buyers decide on which homes to buy by comparing the values of the home. They will buy the one that is more valuable to them! So if a house is deemed not as valuable to the buyers on the market then the buyers pass on those homes and they become an expired listing. Selling houses can be very competitive or cutthroat as some would say! In a changing market, 3 things will determine whether your home sells or not!
1. Accessibility – A motivated buyer ready to buy usually will look at 4-8 homes before they are in escrow for something. With inventory increasing and buyers now have options. If it is not easy for them to get access to your home, they will look at other homes first before coming to yours. Chances are that they will find something before they even reach your home. So what can you do? Consider installing a lock box… Consider really opening up your schedule for showing available.
2. Condition – With the interest rate went from 3% to now 5.25%. The same house all of a sudden becomes more expensive for the buyers. The same house that they are buying for $900,000 at a 20% downpayment is now going to cost them almost $1,000 more! Would you say their expectation for the condition of the house would also go up? They may no longer have the budget to do a remodel. So what can you do? Consider updating your home to the current market condition. A coat of pain can never go wrong…Buyers like wood floor over carpet and granite countertop over tile.
3. Price – You know I am going to talk about price right? Price is directly tied to the perceived value of a house. When you lower the price, the perceived value of your home goes up. Buyers become more interested in your house. When you keep your prices the same but improve the condition of your home, the perceived value of your home also goes up. Buyers are more inclined to put in an offer. So what can you do? To make sure you are sold, you got to be the 1st or 2nd in terms of value. Remember, you don’t need to be the lowest price to be the best value!
So there you go…some thoughts on getting a home sold in today’s market. Hope this helps! Also, as mentioned, we are seeing the market coming to a historic high with unprecedented Appreciation during COVID. It could be a great time to take advantage of the market. If you are interested in finding the value of your home, either give me a call or go to my website… www.JackMaRealEstate.com and click on the “sell” tab. I will also put my contact information and website link below.
