We are returning to a more balanced market, where neither buyers nor sellers are at a major advantage. Below, we walk through the changing realities for today’s sellers and homeowners to show how you can make the market work for you.
Seller reality: Buyers aren’t negotiating the price down
We often hear sellers request “room to negotiate down” when setting their property’s price. We can’t say it enough – you shouldn’t get your negotiation tactics from reality TV auction shows.
Your home gets the most exposure and interest in the first few weeks after you list. By overpricing your home, you may lose showings and even offers during that critical time.
Even more importantly, today’s buyers are paying the listing price. In our 13-county metro area, sellers in August 2014 got 97 percent of their listing price (NorthstarMLS). The idea that buyers will negotiate down is a myth, provided you list at the right price.
Seller reality: You can’t name your price
As mentioned above, buyers are paying 97 percent of the listing price. It’s critical to remember that while this is true, it doesn’t mean that you get to name your price when you sell your home.
Today’s buyers are discerning. They know the neighborhood and home features they are looking for, and how much they are willing to pay. Their primary focus is not to give you what you want for your home – it’s to pay what they believe the home is worth.
Your Edina Realty agent will provide a free-of-charge comparative market analysis, which takes into account your property, the neighborhood and other public record data, to help you set your listing price. Once you know how much your home is worth in today’s marketplace, you can determine if it’s the right time to sell.
Seller reality: You won’t make more by listing in the spring
It’s a common stat in the real estate community that 60 percent of all homes will be bought and sold between May and August. This is true – but it doesn’t mean you have to discount your home in the winter to get it sold.
Remember, both sellers and buyers are likely to take a break in the colder months. So while the winter does show a slowdown in activity, the market still hums as a small pool of buyers stomp through snowy driveways to compete over a smaller inventory of homes.
Plus, today’s slowed price growth means that there’s no guarantee your home’s value will continue to increase over the winter. By listing now, you may be able to avoid the chaos of the spring market entirely – and earn the same selling price.
Seller reality: These are the highest home prices in six years
Many sellers think they may have left money on the table by not selling earlier in 2014, when we were in a clear seller’s market. It’s highly unlikely that this is true. While we are seeing fewer multiple offers and less buyer competition, price growth has continued throughout the year.
In September 2014, NorthstarMLS reported a median home sales price of $203,000 in our 13-county metro area. The last time we saw prices that high was in September 2008, when our median home price was $204,500. In short, if you sell your home now, you are likely to earn more for your property than if you’d listed in early 2014.
Ready to get started?
The ever-changing market can be difficult to navigate, but our 2,300 local experts can help. Reach out today to get started on the buying or selling process with an Edina Realty REALTOR®.