We fielded offers on two listings this week - both sellers are thrilled with the outcomes for their homes. Each were on the market for only 8 days…one is pending at 30% over asking and the other is in contract at over 70% of asking!
But just down the street from our listings, we see many homes sit vacant and without viable offers for a long, long time. This market is variable and inconsistent.
The number one question we get from friends and family is, “how is the market?” Here are some observations:
An increase in cash! Since borrowed money is rather expensive these days (interest rates are near 8%), buyers are increasing their down payments and offering all-cash. One of our listings received five offers this past week and four were all-cash!
Proper market preparation is everything. We can’t emphasize this enough…if a seller’s goal is to net as much as possible from a home sale, making smart choices in preparing that home for marketing will be the dividing line between no offers and a competitive multiple offer scenario. Buyers are much less excited about homes that are not move-in ready, sold vacant and staged, and lacking charm. Of course we represent every kind of seller, and 5401 Hillside (sold at 43% over asking) is a great example of how we can bring fantastic outcomes for sellers who need to remain in the home and limit the market preparation. But as a whole, buyers truly value a fully prepared home and it remains our highest recommendation to increase the sales price.
It feels like we are seeing two different markets. One that speaks to retirees and one that speaks to younger buyers. A home that appeals to an older buyer - one that is move-in ready, with no or few stairs, and conveniences like laundry on the same level and a garage, is highly desirable to a buyer set that has cash and knows their way around the negotiating table. These homes sell quickly with multiple offers. A home with stairs, that is less “cute”, will be less interesting for both buyer groups, so the best way to navigate a home with multiple levels is to up the charm and market preparation. Knowing your market is of the utmost importance.