Home Selling Tips for a Changing Market

Like much of the rest of the country, the Riverside real estate market really flourished over the last couple of years. We saw double-digit increases in home prices. Unfortunately for sellers, the market has cooled off a bit over the past few months. Multiple offers and same-day-as-listed sales appear to be thing of the past. Even so, anyone who bought their Inland Empire home pre-pandemic may still own a nice chunk of equity in their properties. So, putting your home on the market is still a profitable enterprise. Here are a few home-selling tips that you might want to consider as our market changes from the seller’s favor to a more balanced market (tipping toward the buyer’s favor).

Home Selling Tips for a Changing Market

Buy Down Buyer’s Interest Rate

Interest rates rose above 7% for the first time in over 20 years. It looks like they may even climb higher. This may restrict home buyers’ budgets. As the seller, you may consider offering to pay down the buyer’s interest rate to make it a little more affordable for them to buy your home. This can either be done through a credit or by paying points at closing. The amount each point costs varies per lender. But it usually costs 1% of the total mortgage. Each point typically lowers the interest rate by 0.25%. On a $500,000 home, a point could cost you $5000. However, that is a small price to pay to get your home sold more quickly.

Price Reduction

One of the most important things any seller should focus on is setting an appropriate price when initially listing your property. That is especially true when home selling in today’s transitioning market. But if you find your house sitting on the market for a couple of weeks with no buyer interest, you might want to consider reducing your price. To spark renewed interest in your listing, there are two trains of thought. First, make a statement with a 5% drop. This may be enough for spur interest from multiple buyers. Or perform a “micro drop” (1% every couple of weeks or so). Some buyers look for recent price changes because this may indicate that the seller is more eager to negotiate with them. Talk to your real estate agent to determine which option works best for your property.

Sweeten the Pot

With everyone feeling the crimp in their budgets nowadays, anything you can do to lessen a buyer’s costs once they move in may help motivate them to seal the deal. For example, offer to replace your worn-out roof or almost out-of-date HVAC system before closing. At the very least, offer a credit at closing equal to the cost of replacement. Ask your agent to find out if the buyer was interested in specific artwork, furniture, or other items that you would be willing to part with. Sometimes, even throwing in your riding lawnmower might be enough to make a buyer sign a contract with you.

Pay for a Home Warranty

Finally, offer to pay for a home warranty. Gas. Groceries. Utilities. The cost of everything has gone up recently. Bring peace of mind for your buyer (and a sales contract) to the table with a home warranty. Forbes says that a mid-tier home warranty in California costs about $540 a year (or $45 per month). You (the seller) pay for the first year and then the new buyer can opt to pay for it after that or just let it expire. It is completely transferrable to the new owner upon closing.

These are just a few home-selling tips that may help you secure a sale during this changing market. When you are ready to list your property, contact me. I’d love to discuss how we can turn a “for sale” sign into “sold”.

Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty