America's red-hot property market is in the midst of a cooldown with some homes are selling for hundreds of thousands of dollars less than last y
America’s red-hot property market is in the midst of a cooldown with some homes are selling for hundreds of thousands of dollars less than last year.
Sellers might well be tempted to stave off moving but realtors insist there is no need to panic just yet as homes can still attract a good offer – with the right marketing.
Dailymail.com spoke to two experts who revealed their best tips for staving off a home market cooldown.
‘When it comes to listing a home now, you want to win the beauty contest,’ licensed realtor Adie Kriegstein, who founded NYC Experience at Compass, told Dailymail.com.
Realtor Adie Kriegstein says that buyers need to focus on ‘winning the beauty contest’ of online listings and investing in good marketing
The US housing market is currently in the midst of an unprecedented decline in home prices – with properties in some cities selling for hundreds of thousands of dollars less than they were just a year ago, new data has shown
‘That means investing in the right pictures and getting the lighting right.
‘And you need to get the most exposure possible. Make sure your property is on every possible outlet.’
She added: ‘What we do with our homes is geo-targeted advertising online so homes are seen by the right people in the right zip codes.’
Kriegstein said targeted advertising – which is done through a third-party agency and markets properties on the social media channels of people in the area – was especially important for homes in good school districts.
‘We were recently struggling to sell a home that was near lots of good private schools. But once we started advertising to the right people, it sold right away.’
But for South Carolina realtor Drake Johnson, of Be-More Agents, the key issue now is pricing competitively.
‘At the moment, you don’t want your home sitting on the market,’ he told Dailymail.com.
‘Making sure you know exactly how much houses are going for in your area and pricing it competitively will make it shine.
‘I have a realtor friend in San Antonio who is pricing properties around $10,000-$15,000 below what they think they’re worth as a way to get buyers.
The trend has been in part sparked by red-hot inflation and rising interest rates has poured cold water on the market and deterred would-be buyers from moving
‘It’s worth it if it stops a property sitting on the market for weeks or even months.’
Kriegstein adds: ‘Give your home three weeks on the market and if it isn’t selling, you might want to consider adjusting your price.’
Both also say that sellers now have to put more focus into making their properties appear like a ‘show home.’
Johnson said: ‘Invest in professional pictures – bad photos taken on a cellphone do not look good on Zillow,
‘And once you start viewings, even air fresheners can make the biggest difference. Make the renovations that you need to make, give rooms a fresh paint job and take out the trash.
‘Every detail counts.’
Realtors also stress that property markets vary drastically between states currently.
Data from Redfin found that two of the worst-affected areas included Oakland and San Francisco – which recorded decreases of $220,000 and $174,000 respectively.
South Carolina realtor Drake Johnson said pricing competitively was the key to selling a home in today’s market
Other major metros to be badly affected were Austin, Boise, Salt Lake City, Seattle and Los Angeles – all of which saw their median home price shed at least $60,000 since April 2022.
The property market exploded during the pandemic as lockdown left homeowners wanting bigger homes and more outdoor space.
And the sudden work from home culture meant office employees no longer needed to live in the big cities – prompting them to flee to coastal areas.
Prices surged by 26 percent in May 2021, according to data from Redfin.
However red-hot inflation and rising interest rates has poured cold water on the market and deterred would-be buyers from moving.
Mortgage rates rose to their highest level since mid-March last week, with the average 30-year fixed-loan reaching 6.57 percent, according to data from Freddie Mac, the Mortgage Bankers Association and the Federal Housing Agency.
But separate figures from Bankrate suggested the average was above 7 percent.
These higher borrowing costs has stifled buyer activity, which has in turn discouraged sellers from listing their homes, further straining inventory.
Last month Dailymail.com revealed more and more home movers were negotiating mortgage-rate buydown agreements.
Buydowns involve a seller agreeing to pay a lump sum of money that is then used to reduce a buyer’s interest rate over a set period of time.
Often these negotiations are struck when a home has been on the market for a long time and sellers are struggling to find a buyer.
It can be less expensive for them to agree to this type of deal rather than slashing the price of their property.
Kriegstein said: ‘I have heard in some areas that buydowns are becoming more common and sellers are more willing to help buyers with financing a property.
‘But again it depends on the area as in New York – where the market is still quite stable, there is less appetite.’
Source: | This article originally belongs to Dailymail.co.uk