Source: keepingcurrentmatters.com

 

The last few years have been pretty hot for the real estate market. Homebuying demand is strong, and when a property is listed, it typically sells quite quickly, at least compared to pre-pandemic years.

It’s true: According to Realtor.com data, homes sold in May spent a median of 43 days on the market – or just over four weeks. While that’s higher than the super-fast sales of 2021 and 2022, when mortgage rates were at record lows, it’s below the 2017, 2018, 2019 and 2020 medians for the same month.

For sellers, that’s good news, indicating a quick and painless sale in most cases. But what if your home bucks those trends? What are your options if your home sits stagnant, with no showings or offers for months? Here’s what real estate professionals say you can do.

1. Lower Your Price

Your first option is to reduce what you’re asking for the home. As Desiree Avila, a real estate agent with Charles Rutenberg Realty in Fort Lauderdale, Florida, explains, “The most common reason a house doesn’t sell is the price.”

While lowering your price will mean fewer profits once the property does sell, it can often help draw in buyers and sell a home faster.

“When all things are considered analytically, most home owners are financially better off reducing the price to match the current market,” says Glenn Phillips, CEO at Lake Homes Realty, which is licensed in 35 states. “Then they can get on with their personal and financial lives.”

Make sure you (or your agent) use comparable sales – recently sold homes in your area that are similar to yours – when re-pricing your home. These can let you know what buyers are willing to pay for a property like yours.

2. Spruce Up the House

Another option is to update your house. This might include making repairs, sprucing up its curb appeal or doing some carefully chosen renovations that add value to the property.

“Reevaluate how the home is being presented to buyers,” Avila says. “Is it clean when buyers come to see it? Does it look inviting on the outside?”

Staging the home – arranging the furniture, decor and artwork to make the place more welcoming – can help, too. In fact, according to a report from the National Association of Realtors, 81% of real estate agents say staging a home makes it easier for buyers to visualize themselves there. One in five also say it increases a buyer’s offer by 1% to 5%, while another 19% say it increases offers by 6% to 15%.

3. Rent It Out

You can also rent out the property you’re trying to sell. This is only an option if you don’t need the proceeds from the sale to buy (or rent) your replacement property.

“Renting the house is always an option,” Avila says. “Depending on where they live, they may be able to rent it short term as an Airbnb or sublet it to someone who runs Airbnbs. If not, they can always rent it long term, as long as it covers the expenses.”

Just make sure you know the risks that come with renting out your home.

“What if the tenants damage the home?” Phillips asks. “What if they stop paying and refuse to move? What if the home needs some typical repair that costs a lot of money and comes out of the owner's pocket? Will the owner vet renters? Do they have the knowledge and how to do this within fair housing laws? Do they need to hire and pay a property management company for much of this?”

You should also have a good idea of how long you’d rent out the home (and when you’d want to attempt to sell again), and make sure you have a financial plan for getting by during that period.

“Home prices are not expected to increase significantly again for years, and may even fall in many markets first,” Phillips says. “So if one rents out their home to buy time, that time alone will likely not solve the problem of selling the home at a desired price.”

4. Switch Real Estate Agents

In some cases, it might help to change real estate agents. This might be a good choice if your agent has too many clients and is having trouble giving yours the attention it deserves or if they’re not pricing or marketing your property well.

“Changing real estate agents may help if the homeowner is not satisfied with their current agent's marketing approach or communication,” says Denis Smykalov, a real estate broker at Wolsen Real Estate in Sunny Isles Beach, Florida. “A different agent may bring a fresh perspective, a different marketing plan and new networks that the seller's previous agent did not have.”

If you do decide to change agents, make sure to read the contract you signed with your initial agent first. You may be locked in with them for a certain time period, or there may be a fee for withdrawing from the contract early, depending on the terms.

5. Explore Alternative Selling Routes

Selling directly to buyers isn’t the only option. You can also sell to iBuyers – online homebuyers like Opendoor or Offerpad – or to investors, like home flippers or companies such as HomeVestors.

“Selling to iBuyers or flippers may be appealing for homeowners who are looking for a faster and more certain sale,” Smykalov says. “iBuyers are real estate companies that use technology to buy homes directly from homeowners quickly, while flippers purchase homes at reduced prices, renovate them and resell them at a profit.”

In both cases, you’ll likely enjoy a fast and convenient sale. You won’t need to market, list or repair your home, and with some iBuyers, you may even be able to trade in your property for another one they own. Just be warned: You’ll typically get less money than you’d get on the open market. One study from data firm Collateral Analytics found that iBuyers buy at a discount of anywhere from 2% to almost 7% compared to the home's actual market value. Some iBuyers may also come with service fees.

“Some sellers may have to sell quickly for one reason or another and take the loss,” Avila says. “But if you’re a seller who wants a certain price, this route should be excluded completely.”

Source: keepingcurrentmatters.com