The real estate market in Texas is still a hot commodity for buyers and sellers. With the current economic environment placing more pressure on real estate markets across the country, it's more important than ever to understand trends such as interest rate fluctuations and how they might affect you when selling or buying a home. Interest rates saw sharp increases, but have recently dropped again, giving more optimism to homebuyers.
Spring is traditionally the best time to sell your home, and with the 2023 market in Texas looking promising, here are five key strategies to get your property sold in the upcoming season.
1. Price the Property Properly
The price is one of the most challenging things about determining how to sell your home. If you set your asking price too high, buyers may not even consider your property, and you could find yourself 'chasing the market.' Getting the pricing right up front can help give your property greater visibility and attract buyers more quickly, ultimately limiting any losses due to overpricing or extended time spent on the market.
Listing your house slightly lower than the current market value may give you an advantage over other comparable properties. An initial lower price will often attract more buyers, resulting in a quicker sale where the price actually goes back up or equalizes to that of its competitors due to a bidding war.
2. Staging & Preparing
Home staging is a great way to increase the value of your home and make it more attractive to potential buyers. According to the National Association of Realtors (NAR), staging a home typically results in a 1% to 5% price increase on offers. Staging can also substantially lower the amount of time a home remains on the market.
Other small touches like decluttering, cleaning, and depersonalizing all create an inviting space for potential buyers. Staging doesn’t just mean decluttering and cleaning, though. It also means staging furniture and artwork to give buyers an idea of what life could look like in the home. Professional photos taken in the proper lighting will also give buyers a great first impression. Additionally, some realtors will offer the option to do virtual staging for some rooms if it is not possible to stage the entire home.
3. Choosing The Right Agent
When you're in the market for a real estate agent, it's essential to do your research and find an experienced and knowledgeable agent. Here are some key points to consider regarding how to choose your realtor:
- Availability: Make sure the agent is available when you need them.
- Experience: Look for an agent with experience in the local market and knowledge of the current trends.
- Honesty: Choose an honest agent who will be transparent about their fees and other costs associated with selling or buying a home.
- Knowledgeable: Make sure the agent is up-to-date on all laws, regulations, and procedures related to real estate transactions in your area.
- Personable: You'll be working closely with your real estate agent, so make sure they have good communication skills and that you feel comfortable interacting with them.
- Proactive: A good real estate agent should be proactive in their approach to finding buyers or sellers for your property, as well as staying on top of any potential issues that may arise during the transaction process.
- Non-traditional Selling Strategies: Some agents may use non-traditional methods such as social media marketing or virtual tours to help sell properties faster and more efficiently than traditional methods alone can provide. Ask potential agents about their strategies for marketing homes before deciding which one to choose.
- Checklist: Have a list of what you want from an agent before you start looking so that you can easily compare different agents against each other and make an informed decision on who is best suited for your needs.
If you are wondering how to interview real estate agents, here are three questions you should ask:
1. What is your experience with selling homes in the current market conditions?
2. How do you plan to market my home?
3. That advice do you have for me regarding pricing my home correctly and negotiating offers?
The agent’s answers to these questions should provide you with the confidence that they are the right person to help get your home sold.
4. Offer Creative Incentives
With higher interest rates, it may be beneficial to offer buyers incentives in lieu of price discounts. Closing costs are one of the most popular expenses that home sellers can incentivize. Not only does this help the seller keep more of their equity, but it also allows them to potentially gain a competitive advantage over similar listings in their local market that don’t include such incentives.
Closing costs can be a significant expense for home buyers and add up quickly. Closing costs typically range from 3% to 6% of the loan amount, meaning that for a mortgage of $200,000, closing costs will be about $6,000 to $12,000. This is why many sellers choose to incentivize closing costs for potential buyers to make their homes more attractive and competitive in the market.
Incentivizing closing costs is an excellent way for sellers to keep more of their equity while also giving potential buyers a bonus when considering their home. Not only does this help the buyer save money on their purchase, but it also gives them peace of mind knowing that they won’t have to worry about paying such a large sum of money upfront.
Other examples of creative incentives could include offering a generous home warranty package or even an upgrade allowance for improvements on appliances or fixtures. This can be a great way to motivate potential buyers by allowing them to upgrade certain home features with their own money instead of shouldering the entire cost. With such an incentive, buyers can customize their new home with their preferred upgrades and add even more value to it when it’s time to sell down the road.
5. Do Quick Repairs
The small yet significant step of making quick repairs on things such as chipped paint, broken window locks and handles, or a squeaky door hinge can often make all the difference in the mind of a potential buyer. These relatively inexpensive improvements can make your home look well-maintained without breaking the bank.
Not only are you taking care of minor issues that could become liabilities down the road, but you are also gaining an edge over comparable listings that do not feature such improvements. When selling, paying attention to minor details may not always be at the forefront of your list of items to address, but it can prove valuable in a competitive market.
The Texas real estate market has a lot of potential for home buyers and sellers this year. With a focus on budgeting, research, and finding the right real estate agent, you can maximize your chances of success.
Christopher Watters and the team at Watters International Realty offer experienced guidance and tailored strategies to help home buyers and sellers make smart decisions that will get homes sold in today’s competitive Texas real estate market.
Whether you're buying or selling, working with the experts at WIR is the best way to ensure your success in the 2023 Real Estate Market.
Contact us today to get the process started! We look forward to helping you achieve your real estate goals.