Maximizing Profits in a Shifting Market
I don’t care what the neighbor’s house sold for three months ago; that was three months ago, the market has changed! That is exactly what you would have told me last year while prices rose rapidly, now it’s my turn to tell you. American economic policy has finally found its way into the real estate market and sellers across the state of Florida are starting to feel those impacts. It is important to remember especially in a state like Florida that there will always be people buying homes. We want to help you maximize those profits so below we will share the same tips that help our sellers sell for more money.
The last thing you want to do is find the perfect buyer for your home just to be caught off guard by home inspections and an appraisal, or even worse; the buyer cancels the transaction due to their findings. Get ahead of those items up front and pay to have your home appraised and inspected before listing it for sale. Completing these items will allow you to fix any issues that come up beforehand and it will enhance your marketing to prospective buyers.
Prepare your Home for Market
Up until recently any home that hit the market would sell, despite the clutter, condition, etc. That is no longer the case, so it is imperative to get your home into the best possible condition. This may include doing some updating or refreshing certain aspects of your home like paint or landscaping. Nothing is more important than decluttering your home so that potential buyers can visualize how each space can be used. Talk with a local REALTOR, interior designer, or stager about what you can do to make your home stand out. You could also read our blog about simple tips to prepare your home for market.
It’s Time to be Realistic About what your Max Value Really is.
The only way to truly maximize your value is to understand what your value truly is. The market is going through some tumultuous times, inventory is increasing rapidly, interest rates are sky rocketing, and buyer demand is falling. Just because your neighbor sold their home for a certain number a month ago does not mean yours is worth that or more. If your specific neighborhood is seeing higher inventory and a steeper decline in buyer demand, then it is likely that your home is worth less. Make sure to check & see if your neighbor sold at a higher price to pay their buyers closing costs, because that could skew the prices higher. We often recommend our sellers get an appraisal and understand that pricing your home below appraised value may be necessary to attract the buyers shopping in your neighborhood.
Once your home is on the market it is not likely that people will be lined up to see it day one like they may have been the past two years. Instead, you will likely see scattered showing requests throughout the duration of your active listing. It is very important to make sure your home is as accessible as possible. If 5 people want to see your home in a 2-week span, you do not want to miss out on the one person most motivated to buy because you couldn’t accommodate their request. If your home will be unavailable for numerous weeks, then ask your Realtor to place the home in a “Temporarily off Market” status. Most Realtors in the state of Florida have access to Showingtime which is an electronic scheduling system that makes scheduling showings much easier on every party. If you Realtor is not using a system like this, then you could be missing out on potential showings.
Pay your Buyer’s Agent & Stop the Transaction Fees.
The days of paying a discounted commission and receiving an offer in 48 hours are mostly behind us, so it is important to hire a top Realtor in your area that will invest in marketing your home. When you hire a Realtor to sell your home you will decide on a commission to offer to a cooperating broker (Buyer’s Agent). Even though the NAR code of ethics bars Realtor’s from showing homes based on the commission offered, some still do it. More importantly, not all Licensed agents are bound by the code of ethics and those agents may filter out listings that they feel aren’t paying them a fair wage. It has also become common place for listing brokers to charge a buyer’s broker their transaction fee at closing and again there are many agents who may not show your home because of it, so you may want to check with your broker and see if this tactic will help or hurt you.
Finally, it is important to practice patience in this market. Remaining patient will reduce many of the emotions you may generally feel when selling a home. In a traditional market it is not uncommon for homes to sit on the market for 30-60-90 days before receiving an offer. Don’t feel defeated if it takes time to get the right person in the door and understand that this is completely normal given the current market conditions.