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THE MARKET IS MODERATING

LISTING

When we get ready to list a house, we must look at the property through a Buyer’s eyes – if we were buying this house, what would we notice about it, what would we really like and what might concern us. It helps to take a really good look at all of the comparable listings as if they were available to purchase at the same time as the property we are listing.   You can compare them all in terms of the cosmetic condition of the house (how does it look – is it neat, clean and welcoming or do I have to do a lot of work), the physical condition of the house (does it need maintenance, a new roof, windows, furnace), amenities like parking and yard space and finally (but not the least!) location – is the area safe, pretty, close to schools, shopping, etc.

MARKET CONDITONS

Another important aspect of listing a home is to look at the current market conditions.  A few months ago, we had low inventory, high demand and easily available credit.  These things together fueled the hyper-vigorous market and created historically unheard of bidding wars. Currently, interest rates have gone up and are predicted to rise higher, the cost of living is skyrocketing and credit is not as easily obtainable. Bank appraisers/loan officers have become more cautious in their lending practices and mortgages are a little harder to obtain.  This has occurred in the space of just over a month.  That is not to say that desirable properties in desirable areas are not still selling quickly and over asking. What is does indicate is that expectations might need to be trimmed a bit.

PRICING STRATEGY

In the recent very strong Seller's Market, you could pretty much ask for any price resembling reasonable and get way above that.   That is generally not a prudent strategy in today's market.  Work with your agent to review new listings and sold listings no further back than two weeks - that's how quickly it's changing.  Consider NOT holding offers - there are benefits to doing that, but you may also risk turning off buyers who don't want to participate in bidding wars - this is very market specific, so discuss this with your agent.  Just understand that what happened a month ago, is not what is happening today.