How to Buy and Sell a House in Today’s Market
Paul Jamison of the Jamison Family of Companies speaks about how to buy and sell a house in today’s challenging market.
Today’s challenging real estate market is constantly changing at a rapid pace. Tactics that may have once worked to buy or sell your home in years past may not work as well today. It may be hard to keep up by simply doing whatever people used to do. There are many variables today that are new to our current times including: daily interest rate fluctuations, constant area development affecting traffic patterns, commute times, etc. These changes can have a positive or negative effect on your ability to buy or sell a home today.
How to Sell a House in Today’s Market?
Today’s sellers need to be acutely aware of market fluctuations and remain fluid in their selling strategy. Following are some considerations for today’s sellers to explore:
Price. Do not simply set your sales price based on what you see on zillow.com or other online aggregators. They have never stepped foot in your home, and they have no idea of the nuances of your property or your neighborhood, updates you may have made, yard features, or any of the benefits of your home and property. Consider other properties that have sold in the last 6 months to a year. Look at other homes’ days on market, and look at their amenities and upgrades in comparison to yours. Consider other properties that are currently on the market. Explore price bracketing to get the highest number of potential buyers and capture both high and low ends of your price range.
Empty the closets. If your closets are overflowing, put some items in storage. Space and storage is a premium in today’s market. Give buyers the impression that there is ample closet space, not that they will run out of room for their things.
Bring in the light. Wash all windows and open the blinds. Lighten up the drapes and remove any heavy curtains. Buyers like to see a bright and airy home, not a dark and dingy one.
Market the home. Don’t just rely on your Realtor putting your home in the MLS system. Consider all other venues including social media (Facebook, Instagram, NextDoor, etc.) to help spread the word. Learn what to do and how to do it. If you’re not comfortable using social media, hire someone who can help.
Conceal the critters. We know you may love animals, but be sure to remove all pets (and their odors!) before any showings.
Don’t over update. You actually can do too much updating. Get with your Realtor early on, so you don’t spend money on unnecessary updates that may not give you the best bang for your buck.
Take the home out of your house. Remove all personal photos, personal sports team preferences, crazy design elements (black walls), etc. Potential buyers want to be able to envision themselves and their family living there. They don’t want to get distracted by your personal items.
Focus on the kitchen. The kitchen is the most important room in any house today. Focus all energy and money in the kitchen.
Be ready to show at any time. Though it may be inconvenient, always be ready for a showing, no matter what day or time of day.
First impressions count. From the driveway to the front door, do everything possible to make a solid first impression. Curb appeal matters greatly. Take time to landscape around the mailbox.
Court your neighbor for assistance. Let your neighbors know when open houses will be occurring. Ask them to do their very best to assist in making any showings positive experiences for all prospective buyers.
Tell prospective buyers what they may not know. Creating a “Good to Know” list about the community, the area, your neighbors, fun things to do, etc. can be a powerful selling tool.
Don’t let the buyer speculate. With the seller’s permission, you can let the buyers know why the sellers are selling. Instead of a buyer thinking there may be a divorce (if they see only women’s clothes in the closet), you can disclose that the owner started a new job in another state and that the family is waiting to move until school ends, for example.
Don’t sell the house to yourself. Know who your prospective audience is, find out what matters most to them, remove your own personal preferences, and then tailor your home to their needs (smart features, great outdoor space, beautiful home office, etc.)
Do a pre-inspection if it’s an older home. Take the worry out of showings by supplying prospective buyers with a pre-inspection report. That way, buyers will know exactly what they’re getting into, and how to set an appropriate price if they do make an offer.
How to Buy a House in Today’s Market?
As with today’s sellers, today’s buyers also need to know a few specific things when it comes to purchasing a home in the current market. Tactics that used to work years ago may need to be tweaked for today’s market conditions. Here are some items for buyers to consider:
Know your Credit Score. Before you start looking for a home, know how much home you can actually afford. If you don’t like your credit score, work on a plan to fix it.
Choose a Mortgage Officer. Don’t just choose any lender on the internet, as they may promise low rates, but may never actually get you to the closing table. Find a reputable local mortgage professional whom you can trust.
Review your current debt and income with that lender. Review your financials and your current debt to income ratio with your lender, so that they will be comfortable providing you with a pre-approval letter.
Get a pre-approval letter. A pre-approval letter shows sellers that a lender has verified and vetted your information and that you are actually financially able to purchase their home. You will come across as a much more serious buyer prospect to any seller.
Set your comfortable price range. Just because you can afford it, doesn’t mean you should buy it. You’ll most likely want to purchase things (furniture, etc.) or make some upgrades (flooring, etc.) when you do finally move into your new home.
Understand additional costs associated with buying a home. In addition to the actual sales price of the home, there are several other costs that the buyer is responsible for, including: loan closing costs, inspection costs, appraisal costs, moving costs, etc.
Know your must haves vs. your nice to haves. For example, you may need to have 3 bedrooms, and it would be really nice if they each had their own bathroom. There’s no such thing as a perfect house, so determine which items on your wish list are absolute must haves.
Find an agent who can work in today’s market. If the agent is relatively new, ask if they have a mentor or a team they can work with.
Be decisive. Paul loves this quote from his good friend, “If you sleep on it, you may not sleep in it.” Don’t hesitate too long in today’s extremely competitive, low inventory market.
The market has not crashed. Don’t expect a steal or a tremendous deal these days. The market is still going strong, sellers are hanging on tight, and homes are holding their value.
Don’t walk away from a great house because of an easy change. Don’t let a shag carpet or the wrong color paint stop you from buying the home of your dreams. You may not be able to change everything (location, yard, etc.) but there are always upgrades you can make over time. Paint, flooring, vanities, etc can all be changed out over time once you’re in the house.
Understand the neighborhood. Drive around at different times of day to see traffic patterns, commute times, etc.
Zoom in to the property on Google maps. Take time to explore the satellite view of the property to make sure there are no surprises near the property (railroad tracks, unsightly commercial space, town dump, etc.)
We’re to Help!
To discuss property management, property investment, property maintenance, selling, buying, the local real estate market, and all things real estate related, contact the expert team of trusted advisors at Jamison Realty at (704) 846-3663. To learn more about property investment in particular, purchase Paul’s book, Opportunity is Knocking, which is chock full of information and tips to get every new investor well on their way to success.
We will be with you every step of the way. Also, listen to Your Real Estate Today radio show every Saturday afternoon on WBT for fun and interesting real estate information and special guests!