by Karen Williams-deCastro- Realtor®, C2EX, RSPS, GRI, SRS, ABR, SFR, AHWD
In recent times, home sellers have faced evolving challenges in a shifting real estate landscape. The Federal Reserve's decision to raise interest rates has brought about a more discerning group of homebuyers who prioritize factors like cost, condition, and overall value when considering a purchase.1
While pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value.2
Despite the evolving market dynamics and ongoing low home inventory, homeowners can still maximize their returns and attract better offers through strategic planning. If you're looking to sell your home and want to optimize your real estate investment, here are seven key strategies to consider.
1. Opt for a Pre-Listing Inspection
Before listing your home, consider ordering a pre-listing inspection.
While it is common for homebuyers to hire a professional to complete a home inspection before they close, did you know that a seller can order their own inspection, known as a pre-listing inspection, before they put their home on the market? This proactive step showcases your commitment to transparency and can enhance your position during negotiations. A pre-listing inspection can help identify and address potential issues upfront, reducing the risk of complications during the transaction.3
Of course, it’s always possible that a pre-listing inspection—which looks at the home’s major systems and structures, among other things—could turn up a significant problem. This does carry some risk, as you’ll be required to either fix or disclose any issues to potential buyers. However, in most cases, it’s better to know about and address deficiencies upfront than to find out mid-transaction, when it could cost you more in the form of concessions, a delayed closing, or a canceled sale. No one wants that.
But don't worry: We can help you decide if a pre-listing inspection is right for you. And if it identifies any concerns, we can advise on which items need attention before you list your home.
2. Consider Investing in Strategic Upgrades
While major renovations might not always be cost-effective, certain upgrades can significantly boost your home's appeal. Refinishing hardwood floors, updating garage doors, and professional landscaping are examples of investments that tend to yield a high return on investment. Even smaller, more affordable improvements such as fresh paint, modern fixtures, and caulk updates can make a big difference.
For example, refinishing hardwood floors results in an average 147% return on investment at resale and new garage doors typically pay for themselves.4 Similarly, research shows that professional landscaping can boost a home’s value by as much as 20%.5 Even simpler and less expensive fixes can make a big difference in how your home comes across to buyers. A fresh coat of paint in a neutral color, modern light fixtures and hardware, and new caulk around the tub or shower can help your property look its best.5
But before you make any changes to your home, reach out. We know what buyers in your neighborhood are looking for and can help you decide if a particular investment is worthwhile.
3. Consider Professional Home Staging
You need potential buyers to fall in love with your home—and they’re much more likely to do so if they can envision themselves in the space. According to the National Association of Realtors, home staging can both increase the dollar value of home offers and help a property sell faster. In fact, 53% of seller’s agents agree that staging decreases the amount of time a home spends on the market, and 44% of buyer’s agents see higher offers for staged homes.6 Staging can include everything from decluttering and packing away personal items to bringing in neutral furniture and accessories for showings and open houses.
Home staging is a powerful tool for creating a captivating impression on potential buyers. It involves decluttering, depersonalizing, and enhancing your home's visual appeal. Statistics show that staged homes not only sell faster but also tend to receive higher offers.6 Consider working with a professional home stager to showcase your property's full potential. We work with profesional stagers, for those who need it. Reach out and I can let you know what a professional stager can do for you.
4. Implement a Competitive Pricing Strategy
It can be tempting to list your property at the highest possible price. Just know that sometimes, that approach can backfire. Homes that are overpriced tend to sit on the market, which can drive away potential buyers—and drive down offers.7
However, if you price your home competitively, it can be among the nicest that buyers see within their budgets. This can ultimately lead to a higher sales price and fewer concessions.
Pricing your home competitively, often at or slightly below market value, can attract more buyers and lead to better offers. A Comparative Market Analysis (CMA) can help determine the ideal listing price based on recent sales in your neighborhood, preventing overpricing or undervaluing your property.7 Combined with our local market insights, we’ll help you find that sweet spot that will attract the best offers while maximizing your profit margin. Reach out to me and I will be HAPPY to do a CMA for your property.
5. Consider Offering Buyer Incentives
In today's market, where affordability is a concern for many buyers, offering incentives can sweeten the deal. Consider options like buying down the buyer's interest rate, covering closing costs, paying homeowner association fees, or including furniture and appliances in the sale. These incentives can set your property apart and appeal to a wider range of buyers.8
Options that can pay off include:
- Buying down their interest rate – You can pay an upfront sum to reduce the buyer’s mortgage rate. This approach can save far more than that cost over the life of the loan, meaning it’s worth more to the buyer than a simple price reduction.8
- Offering closing cost credits – You might pay a set amount or a certain percentage of the buyer’s closing costs.
- Paying HOA costs – You could cover homeowner association or condominium fees for a set period of time.
- Including furniture or appliances in the sale – If your buyer is interested, throwing in the furniture or appliances that they want and need can make your property more appealing.
Buyer incentives can be complicated.
We’re happy to talk through the options that might make sense for you.
6. Utilize an Effective Property Marketing Plan
Gone are the days of relying solely on a "for sale" sign and MLS listings.
The truth is, buyers who don’t know about your house can’t make an offer. That’s why we utilize a multi-step approach to marketing that starts with identifying your target audience, effectively positioning your home in the market, and communicating its unique value. We then use a variety of distribution channels to connect with potential buyers and performance-based metrics to monitor and improve our campaign results.
A well-executed marketing plan can significantly impact the success of your sale. A comprehensive marketing plan is crucial for reaching potential buyers. Although the components of the marketing plan may be the same, each home is unique. And we take that into account when structuring the plan for your home. Our proven approach can have a big impact on the success of your sale. Reach out to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home.
7. Work with a Local Expert
To secure the best offers, partnering with a real estate agent who understands your local market is essential.
Any agent can pull comparable sales data, but in a quickly-evolving market, even the latest comps can lag the current market reality. We have our fingers on the pulse of the local market because we’re working directly with sellers like you. We also represent the buyers who are active in the local market, searching for homes like yours. Local Agents have first hand knowledge of the area and can provide accurate insights. This will help you price your home competitively, and prepare it to meet local buyer preferences. Their extensive network can also increase your property's visibility.
All of these factors can add up to a significant difference in your profit: In 2021, the typical home sold by owner went for $225,000 compared to a median price of $330,000 for agent-assisted home sales.9
Ready to Maximize Your Home's Value?
If you're eager to secure an excellent offer for your home, our comprehensive approach can help you optimize your real estate returns. Contact us for a complimentary home value assessment and a personalized sales plan to get started!
Note: This content provides information and opinions for reference purposes only and is not intended as financial, legal, or tax advice. Consult appropriate professionals for advice tailored to your specific needs.
Sources:
- U.S. Bank –
https://www.usbank.com/investing/financial-perspectives/investing-insights/interest-rates-impact-on-housing-market.html - National Association of Realtors –
https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf - Bankrate –
https://www.bankrate.com/real-estate/prelisting-inspection/ - National Association of Realtors –
https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf - Bankrate –
https://www.bankrate.com/homeownership/landscaping-increase-home-value/ - National Association of Realtors –
https://www.nar.realtor/infographics/staged-for-success - The Balance –
https://www.thebalancemoney.com/looking-twice-at-overpriced-homes-1798671 - U.S. News & World Report –
https://money.usnews.com/loans/mortgages/articles/a-guide-to-seller-paid-mortgage-rate-buydowns - National Association of Realtors –
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics
