Manhattan apartment sales have seen a dramatic drop in the first quarter of this year, as much as 25% compared with the first quarter last year. The causes being adjustments to the federal tax law, swings in the stock market, increase in the mansion tax as well as transfer tax and a glut of luxury condos that went up last year. All this is leading to more buyers deciding to sit on the sidelines. So the question, “How to Sell Your Home During in a Buyer’s Market?” we discuss.
For seller’s, a price drop of 8% is not something to inspire confidence, which is why they now need to take extra steps if they’re to come out with the best deal possible. Employ these strategies to help you sell your home in the current NYC buyer’s market.
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Find out more about the buyer’s
Knowledge is power and knowing just a little bit about the interested buyers can give you an edge in negotiations. If it’s a first-time buyer, throwing in some extras such as furniture or custom lighting fixtures could help sweeten the deal. Depending on their needs and interests, it may not even be money they’re looking for. If they have children, they may be in a hurry to close before the school session starts, if so offer to get them settled in time.
Get a home inspection done
A home inspection contingency should already be part of any deal sheet. Getting a home inspection done beforehand before the listing can be a major selling point. If you find any issues have them cleared up, and you’ll have removed a potential roadblock to negotiations and attract buyers who want a smooth sale.
Stage your home
Home staging might seem like an unnecessary risk, but it’s one of the best ways of getting immediate offers. It might even be worth hiring a professional staging company to ensure you get the right look. An excellent open house gives potential buyers the chance to view your home and get a sense of what living there would be like. Your listing agent will be able to meet buyers directly and answer any questions they might have. When done right, home staging can lead to receiving multiple offers.
Offer to cover the closing costs
Just because it’s a buyer’s market doesn’t mean they hold all the cards. If they don’t have the full amount to cover the expenses, offer to pay some of the closing costs. This is better than reducing the price as it gives the buyer a large chunk of money upfront rather than a tiny reduction in mortgage payments over 30 years. Also, when setting your price to be very careful about not overpricing, no matter how tempting it may be.
A listing price above your homes fair value will only drive buyers towards your competitors. Have your seller’s agent conduct a comparative market analysis to find the right amount. The agent should not just use old comps based on the past 12 months but also factor in real-time current inventory levels, pricing, and trends.
Don’t be too quick to walk away
In a market like this, sellers have to be ready for some tough negotiations. This is where having a competent and experienced seller’s agent by your side can pay off. There will be a lot of back and forth as you move towards signing a purchase contract but don’t allow emotions to cloud your judgment. Stay flexible and only walk away from offers that are insulting. By keeping negotiations open and civil, you have a better chance of securing a deal that leaves both parties satisfied.
The coming months and years will be about price discovery, as sellers look to find the sweet spot to attract the right buyers. With the current housing market still in a state of flux the recent trends can be expected to continue. This cheat sheet by Realtor.com also offers some strong considerations to help sell your home during a buyer’s market.