Sellers Have Front Row Seat while Buyers Pullback

As the real estate market has shifted, sellers are finding themselves in a unique position. While buyers are pulling back, sellers have the front-row seat to observe the changing market dynamics. With fewer buyers in the market, sellers are facing a longer time to contract, which can be a cause of concern for some. However, it's important to keep in mind that overpricing is not a competitive strategy and may lead to further delays in the selling process.

Market Update

The real estate market is constantly evolving, and the current situation is no exception. Interest rates have reached a 22 year high, but still the supply of homes for sale remains low. Recent data shows that the market is starting to shift. The higher rates are chasing away buyers into next year. This means that sellers need to be proactive in their approach to selling their home to compensate for the pain points that many buyers are experiencing. 

Time to Contract is Rising

With fewer buyers in the market, and thus a lower volume of homes being sold, the time needed to get to a contract is rising. This is the period between the start of the listing and finding a buyer. As a seller, it is important to be aware of the risks associated with longer time to contract. The longer the time it takes for a contract to be finalized, the higher the risk becomes for the seller. This is because there are a number of external factors that can come into play during this extended period of time, such as changes in market conditions or unforeseen circumstances that can affect the buyer's ability to complete the transaction. Therefore, it is critical for sellers to work closely with their agents to ensure that buyers are attracted with intent, in order to minimize the risks associated with prolonged negotiations and delays. The longer the time to contract, the more likely it is that these changes will occur, which can lead to a decrease in the selling price.

Overpricing is not a Competitive Strategy

One mistake sellers often make is overpricing their home, hoping to get the highest possible price. However, overpricing is not a competitive strategy, especially in a market where there are fewer buyers. If the price is too high, potential buyers will avoid the property altogether, and it will sit on the market for an extended period. This can lead to price reductions, which can further delay the selling process. Instead, sellers should price their home competitively from the start to attract the most buyers and increase the chances of a quick sale.

While sellers may have a front-row seat to the buyer pullback, sellers now more than ever need to be proactive in their approach to selling their home. Overpricing is not a competitive strategy, and sellers should price their home competitively from the start to attract the most buyers. While it may be challenging to sell a home in the current market, with the right approach, sellers can still achieve a successful sale.

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