The trouble with 2023
The housing market 2023 presents unique challenges for buyers and sellers. Buyers face steep home prices and mortgage rates, increased scrutiny for loans, and housing shortages. Sellers are dealing with smaller buyer pools, properties sitting longer on the market, and overall sagging markets due to high interest rates. To maximize profits when selling a home in a challenging market, it’s sensible to put some effort into the process. This may create bidding wars and help sellers to gain top dollar. To sell a home in a challenging market, one should consider the following tips to attract home buyers:
- Increasing exterior curb appeal. To ask top dollar for a home, buyers typically will expect the property to be in great condition. To justify the price, the home must be well-maintained both inside and out. Upon seeing a property, the first thing that buyers notice is the home’s exterior. This can make or break a sale. Doing simple and inexpensive things like power washing the driveway, trimming hedges, and tidying the entrance way can boost a home’s appeal and draw buyers in.
- Investing in value-worthy improvements. When spending money to upgrade the interior of a home, it makes sense to concentrate on kitchens and bathrooms. Per GOBankingRates, “The kitchen is the most important room you can invest in because it is the room that adds the most value to a home.” Most buyers do not want outdated kitchens. Rather, they seek high-end kitchen appliances and updated items such as cabinetry, countertops, and flooring. Bathrooms are considered the second most important room in a home, so it’s also a worthy place to upgrade. Even minor improvements, such as refacing cabinets or upgrading hardware can have a positive impact.
- Opt for a pre-listing inspection. There are some pluses and minuses in doing so, however, this is generally a sound option for people who seek to assure buyers that the home is in superior condition and is indeed worthy of its asking price. A pre-listing inspection is paid for by the seller and occurs prior to listing a home for sale. They essentially have the home examined by a licensed home inspector to identify potential problems or repairs that are needed. A well-maintained home generally fares well on a home inspection, whereas a home in poor condition will likely not do well. If problems are found, they may be addressed or negotiated into the price. However, note that sellers and their agents have a legal duty to disclose to buyers any property issues revealed in a pre-inspection report. Thus, before considering a pre-inspection, be sure to ask your realtor to determine if it is a sensible course of action.
A challenge indeed!
The 2023 real estate market is challenging for home buyers and sellers. People who are on the fence about selling right now due to economic reasons should likely wait to sell if they don’t have to move. For example, if you are concerned about affording your next property, and calculations are not in your favor, then wait.
But if you need to move…
If you need to move, or if finances are not of concern, then sell, but sell wisely. Due to high interest rates and smaller pools of buyers, sellers are less likely to get offers above their asking price. Bidding wars between buyers are also less likely. For these to be a possibility, and to maximize profits, sellers should consider investing some time and energy into presenting desirable homes that make buyer’s say, “I want that property!” This can be achieved by applying these and other tips to attract home buyers. For more suggestions, check out our sister article entitled, How to stage your home for sale.
This article is purely informational and is not intended as a substitute for professional advice.
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