Ways to lower your insurance premiums

Question:

The real estate market has slowed in our area. We have fewer sales, but prices are holding up fairly well. We want to sell our home because of a job transfer. What steps can brokers take to speed our sale?

Answer:

It’s certainly true that sales have slowed in many markets, and one reason is surely the substantial rise in mortgage rates, going from 3.22% at the start of January 2022 to 6.13% in late January 2023, according to Freddie Mac. Higher rates raise monthly costs and make homes less affordable. There is another aspect to affordability. When owners consider the sale of their property, they naturally look at what will happen after the sale. Maybe they can buy a replacement property for cash and not have to worry about mortgage rates. But, if they need a mortgage, possibly it’s best to stay put, not sell and not face higher monthly costs. This view means fewer homes are available for sale, inventory is low and sale volume falls. In other words, much of the sales decline is because sellers have locked-in historically low rates during the past few years and do not want to give up such financing. It also means those who want to sell may find a ready market for their properties. For example, in December, properties were typically on the market for 26 days, up from 19 days in December 2021, according to the National Association of Realtors. So yes, it takes longer to sell homes, but 2021 was a great year for real estate with mortgage rates at or near record lows. What 26 days on the market means is that in most markets – but not all – sellers still have leverage. Don’t panic because unit sales have slowed. And don’t panic because prices are not soaring – they went up an average of 42% after increases in 2019, 2020, and 2021. In 2022, home prices nationwide rose another 2.3%. As an owner, you have likely locked in substantial equity that you did not have before the pandemic.

Owners, for their part, need to hear broker

Ask Our Broker

By Peter G. Miller

marketing plans based on local sales. For instance, how long are homes on the market in your neighborhood? What is the difference between listing and sale prices? What seller concessions, if any, are hidden in published prices? How has the shift to work-from-home options (WFH) impacted your neighborhood market? What are the features that buyers want most in your area?

Also, visit local open houses. How do they compare with your property? Are there improvements you need to make before placing your home on the market? What about donating excess furniture and other items you don’t want to move to charity? This is both a good thing to do and a way to have a home seem more spacious.

Speak with several local real estate brokers and get their take on the local market.

Then list with the broker who is likely to best represent your property.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.