Picture it: June 2022, and the real estate market in New Orleans shifted so quickly that it has left your head spinning.
Our New Orleans area home sellers have found themselves in this very scenario. While waiting to put their houses on the market, they are left wondering, “Did I miss the hot market?”
Unfortunately, for you, Mr. & Miss Home Seller, you kind of did miss that hot real estate market.
But, I need to sell my home!
Here’s the good news: We can still list your home on the market. Houses are still selling!
Here’s the not-so-great news: Between interest rates and rising insurance costs, you’re not going to get the same sales price you would have six months ago. Whatever your neighbor sold for, whatever Zillow is quoting you – THROW IT ALL OUT. We are in a new market, and these factors will change how much you can get for your home.
What can I do as a seller?
Get ready and stay ready. Like, for real, get ready. Handle repairs on your home, re-paint the interior, and fix the leaky sink. All of these items are going to matter now. Forget the market of just putting a sign into the yard. Sellers will need to get their homes tight and right.
Be prepared for closing costs.
While the last couple of years had home buyers unable to ask for closing costs in a competitive market – this has all changed. We are already seeing offers come in asking for closing costs ranging from 3% to 6% of the sales price.
[SUGGESTED READING: What are closing costs?]
From spring of 2020 to spring of 2022, home buyers were taking homes in their current condition, and most could not ask for any repairs. All of this is changing, and home sellers are in for a reality check. Selling your home will be a little more trying, and you must be ready for repairs and concessions.
[SUGGESTED READING: Seller concessions: What to Expect]
We mentioned it before, but we will mention it again – pricing will be CRUCIAL. We all know that you’ve looked at your “value” on Redfin and Zillow – but that’s all make-believe. Your home is only worth what someone is willing to pay for it. In this everchanging market, it’s essential not to overprice your home. Please stop saying that you “need room to negotiate.” Well-priced homes can still get their full asking price.
[SUGGESTED READING: Did I overprice my home?]
The New Orleans metro area is being hit hard by insurance woes. Most companies have left the area, and people are being dropped every day by their insurance companies. While your current homeowner’s policy may not be very much, have your agent pull a quote ahead of time to see what the prospective buyer is in for. Home sellers will need to make adjustments to their pricing due to this.
[SUGGESTED READING: June 2022 Insurance]
What do I do?
Call your trusted real estate agent. (We hope it’s us!) Sit down, make a game plan, and be patient. Houses are not flying off the market like they were a few months ago. Don’t panic – it’s just a different market.
Ready to talk home selling? Schedule a meeting with us!