We all knew the buyers’ boom would be affected by government overreach in attempting to stop inflation. Raising the interest rates has affected us here in the CSRA, although luckily not drastically. I want to speak directly to sellers with this week’s real estate news.
Buyers are still out there, but there are fewer of them and they are tired. Their buying power has been dramatically affected by the increase in mortgage payments. Some values are not rapidly appreciating, but you haven’t lost the equity gained over the last few years.
Consider the following key points if you are planning to sell or in the process of selling.
You may have to prepare your home to sell. You have been spoiled for two years with the “auction” style market we were in. Some properties will still get lots of offers, but most will not. You may need to stage your home and freshen up your paint and landscaping. You should deep clean and declutter and make it move-in ready for the next owner.
You may have to pay some money towards the buyers closing costs. Buyers who are having to spend every penny they have to buy a home will need some help again. Traditionally, sellers have helped buyers for decades with closing costs. Those days are coming back, so be ready to have to negotiate realistically. Remember, statistically, the first offer is the best, so be flexible and make the deal work!
Pricing is key. I cannot emphasize this point enough. It takes about 10 days to be considered a stagnant listing. If you overprice your home to start, I am certain you will wind up accepting less in the long run. Just being $5,000 overpriced is detrimental to your marketing.
Our buyers don’t have a “make an offer” mindset anymore. They are conditioned to need to pay the list price or over to get the home. Plus, the public information available to everyone instantly means they know the estimated value before they even walk through the door. You can’t trick someone into overpaying for your home. You need to seriously consider all the recent sales and prices accordingly.
Additionally, banks will not lend a borrower more than the home will appraise for, and appraisals are formulated by using the most recent sales comparable values.
The most important takeaway should be that the Augusta area is still a great market to buy or sell in. Be encouraged and don’t let negative talk drive your decisions. You can still achieve your goals but you should just hire someone experienced to support you along the way.
