The housing market has shifted, and mortgage interest rates have increased, but that doesn't mean prospective sellers have to lower their homes' prices. Sellers have to get more creative in the way that they're marketing their homes. With an upcoming pool of hungry buyers, I want to give sellers some pro tips on how to get top dollar for their homes.
1. Market your home before putting it on the market
In the Bay Area, getting an offer for your home is feasible before putting any work into getting it ready to sell. Sellers can opt for what is called an "off-market" to generate buzz, especially if they want to purchase another home while still occupying their current. For sellers to get as much exposure as possible, Compass real estate agents utilize platforms such as "Coming Soon" and "Private Exclusives" to market the home before going live on the Multiple Listing Service (MLS).
2. Maximize exposure on all of the platforms and then some
Zillow and Redfin are only two platforms where buyers typically begin their home search. There are many other ways to maximize a home's exposure. For example, market the home in agent networks and broker sales meetings. Rather than a standard Sunday Open House from 2-4 pm, host a Neighborhood Open House where you can invite the whole neighborhood to an exclusive event. Host a broker's tour - this is a great way to ensure that all local agents see your home. Proactive agents will prospect buyers through "Door Knocking" and call around the neighborhood to provide a buzz about the property. Also, agents should have a digital ad campaign running on social media and Nextdoor and send out mailers before a house goes live to ensure everyone in the area knows about the new listing.
3. Compass Concierge
Utilize Compass Concierge and get the cost of improvements and repairs fronted at ZERO INTEREST. You can leverage our network of professional contractors, painters, stagers, and more than 100 other home improvement services and pay the cost back at zero percent interest when you close on the home! Learn more about some success stories here. For every $100 invested in Compass Concericge, we typically see a $400 return on investment! That's a $400% ROI!
4. Accessory Dwelling Units (ADUs)
ADUs are all the rage right now, especially with California being more lenient in trying to create additional housing inventory. Buyers are excited about the possibility/feasibility of adding an ADU to their residence to offset the mortgage cost or have some family move in with them. Including plans for an ADU or an ADU feasibility study gives buyers transparency and streamlines their potential options for adding an ADU in the future - thus making a property much more desirable!
5. Don't chase the market; price your home correctly
If not priced correctly from day 1, sellers could find themselves "chasing the market." Houses that sit on the market for 21+ days will have to reduce the price to generate more interest from buyers and sell for less than what they should have sold. There are different studies and strategies that go into pricing a home, and the goal is to generate as much interest as possible. Many buyers start their home searches online, so it's essential to price in a way that will generate the most traffic!
6. Maximize the buyer's budget, and offer a credit to buy down the interest rates
One of the best ways for a seller to get more money for the sale of their home is by offering a credit to buy down the interest rates for the buyers. For example: On a million-dollar purchase price, if sellers provide a credit to the buyer to buy down the interest rate (on a 30-year fixed mortgage, the cost is usually between $16 and $19k), the payment will effectively be the same as it would on an $820k purchase price for the first two years, and buyers can refinance when rates drop. When sellers offer credits to buy down the interest rate for buyers, it can help their bottom line.
Check out this example from one of our preferred lenders: (SAVE MONEY with a 2-1 BUY DOWN!)
If your home qualifies for the Eagle program through the First Republic Bank, buyers can lock in a 3.75% interest rate without buying down the rate (along with a $4k closing cost credit from the lender)! Get more info on the program here: First Republic Eagle Community Loan Program
7. Remember: It takes one offer to buy a house, so get multiple offers
The more offers, the better, and as a seller, you want to ensure you get a competitive offer on your home that will close! Nothing will hurt the sale of a home more than sitting on the market while pending, only for a buyer to eventually back out. Offers should be well written and well-represented by the agent in a professional manner.
8. Do inspections for buyers with the hope of getting a competitive, non-contingent offer
Hiring professionals to inspect a home is typical for sellers in the Bay Area to get a clean (non-contingent) offer. When sellers don't do inspections, they leave the door open for buyers to hire their own inspectors, who could write up a biased inspection report and make unreasonable demands.
9. Hire a professional real estate agent.
For all the reasons listed above, you should hire a real estate professional to maximize your home's value. A professional real estate agent will ensure a seamless transaction and guarantee your home sells for top dollar. Many discount brokerages don't deliver the same results as a hyper-local, professional real estate agent with keen attention to detail. If you think you're going to save money by hiring the cheapest real estate agent in the game, you will see longer days on the market, a stressful transaction, and ultimately an effect on your bottom line.
Interested in what your home could sell for? I can send you a custom Comparative Market Analysis today! Reach out to me via phone or email!
