The real estate market has definitely cooled down over the past 6 months, but it is not crashing. In this video, we will discuss what sellers should expect in the current market. Topics covered include:
✅ How many showings to expect
✅ How to prepare for negotiations
✅ How to price your home
✅ State of the market in Burr Ridge
✅ Preparing your home for sale
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Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Eric Andersen Homes
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
🌎 www.ericandersenhomes.com
I have a number of awards and designations, including:
⭐️ Platinum 2021 Top 1% Sales Award (Mainstreet Organization of REALTORS®)
⭐️ Top 3 REALTOR® in Brookfield, IL (2021)
⭐️ 20 under 40, class of 2021 (Mainstreet Organization of REALTORS®)
⭐️ Gold 2020 Top 3% Sales Award (Mainstreet Organization of REALTORS®)
⭐️ Endorsed Local Provider (RamseyTrusted)
⭐️ Best of Zillow
⭐️ Pricing Strategy Advisor (National Association of REALTORS®)
⭐️ Certified Staging Consultant (Mainstreet Organization of REALTORS®)
Transcript:
Rising interest rates have definitely cooled down an overheated market, but it’s still a great time to sell. I’m Eric with Eric Andersen Homes, and I’m living proof. We have our home on the market as I speak, and we had a massive amount of interest and got a strong buyer very quickly. Our experience has been consistent with the data, which shows that homes that sold over the past year have been going for more than they paid for it. The market isn’t nearly as intense as it was six months ago, but we’re still in a sellers’ market. Even so, the market today is different than it was during the pandemic, so there are several things sellers should know about the current market. First, sellers need to be realistic. Don’t expect fifty offers the first weekend on market. The market isn’t crashing, but it is cooling. Median market time in Burr Ridge is currently twenty two days, and homes are getting a median of fourteen showings before going under contract. That means you should expect one point five showings per day, on average. If you’re in Burr Ridge or a similar market and aren’t getting around ten showings per week or if you’ve been on the market for more than about a month, you’re lagging behind the competition, and it will likely hurt your sale price. When you’re new to market, you should see more activity that first weekend, and if you’ve been on the market for a month or more, you’re probably only getting a few showings per week. Another thing sellers need to be prepared for are negotiations. I know, it was more of a hostage situation sellers had going with buyers during the pandemic. It seemed buyers were in bidding wars for every listing, even for that run-down shack on the corner with a big hole in the roof. Today, that’s not the case. Even though inventory is still low overall—we’re at two and a half months’ supply in Burr Ridge—buyers have more options today than they’ve had, and that gives them a little room for negotiation. Buyers today are having inspections, and they will ask for repairs or credits to fix some of the deficiencies they find. Now, not every inspection request is a valid one, and I can help you navigate that. But do be prepared to negotiate, both on price and after the inspection. Ali Wolf, Chief Economist at Zonda, said, “Today’s market is different than it was just six months ago. . . Sellers who want the contract to move forward should be willing to work with the buyer. . . Consider helping with the closing costs or addressing many of the items on the home inspection list.” Another thing you should do as a seller—and this is always a good idea—is to price your home at market value. If you get too aggressive, it will come back to bite you. I always tell sellers it’s a bad idea to set the asking price above what they’re likely to appraise for, because even if a buyer is willing to pay that, their lender will step in and reduce what they’re willing to finance if the home doesn’t appraise. Appropriately-priced homes are still selling quickly. There were ten single-family homes that sold in Burr Ridge in November, and four of them sold the first week on market. On the other hand, one took a massive one hundred sixty days for one of the others to sell, and it set a record-low sale price for the month of November in Burr Ridge, at five hundred twenty five thousand dollars. Overreaching on price will deter buyers, run up market time, and hurt your sale price in the end. On the other hand, you don’t want to undervalue your home and leave money on the table. This is where it’s important to have an experienced agent who knows how to prepare and market your home properly. And preparation is important. A little effort can go a long way toward maximizing your profit. Deep cleaning, decluttering, depersonalizing, and staging, along with high-definition photography, 3D tours, property video, and proper distribution can help get your home the best exposure possible and make a great impression on buyers. There may be a few high-return, low cost improvements you can make to your home, so if you have any questions about those, I’d be happy to come out and have a look. I’m Eric with Eric Andersen Homes, a family-owned brokerage where we treat our clients like family.