Sellers - Are You 'Mentally Prepared' for a Buyers Market?

In recent years, the greater Portland Real Estate Market has faced extreme housing inventory shortages, short times for homes to be available before getting an accepted offer, multiple offers and contracts way over asking price.

It's beginning to change -

Are you, Mr. and Mrs. Seller, ready for the shifts that have begun in our local market?  What are your expectations for showing activity? Number of offers? Speed of the sale?

While the current shift isn't extreme, it is impacting the flow of real estate activity in the area.  If you are thinking about putting your home up for sale before the end of this year, here are six thoughts on 'setting your expectations' for getting your home sold.

1.  SLOWER SHOWING ACTIVITY 

When buyers sense a shift in the market, they take pause to see the direction it is heading. They no longer feel they need to see homes within the first hour if it going 'live' on public websites.  The 15-20 showings that we experienced on the first weekend a home became available may now happen over the first 2-3 weeks from the date of the listing.

2. FEWER INSTANCES OF MULTIPLE OFFERS

Sellers may not receive multiple offers, or over list price offers, within a short time period. Sellers may need to seriously consider and negotiate on the first offer received as they may not receive a second offer before the first offer expires.

3. MORE CONTINGENT OFFERS

We've already begun to see more contingent offers being accepted by Sellers. During the hey-day of real estate activity, Sellers didn't need to consider an offer where the Buyer needed to sell their current home in order to buy.  There were plenty of Buyers who could purchase without this contingency, allowing for a shorter time to get the Sellers home sale recorded.  Now, more Buyers will want to sell first before buying their next home and will be asking for Sellers patience to allow that to happen in the same time frame.

4. OFFERS BELOW LIST PRICE

When activity slows, and there are fewer Buyers for any one home, Buyers are less likely to submit offers that are over the current list price.

5. HOME PREPARATION WILL BE KEY

With a wildly active market, many Sellers felt they could sell their home in 'as is' condition even when there were obvious repairs needed - and they could. Slower activity will mean that Sellers will need to prepare their home to bring it closer to 'move in ready' condition.  Buyers will be looking for the best value they can find, which means the best prepared property at the lowest possible price.

6. CONSIDER INCENTIVES

Providing Seller incentives to attract Buyers may be beneficial as we head into a more normal market.  If a home is sitting on the market for 'too long', Sellers may need to begin considering providing 'extra's to attract Buyers.  In addition to ensuring the list price is well positioned in the market, some options could include providing credits toward Buyer closing costs, bonuses to co-op agents, pre-listing inspections or including a home warranty for the Buyers.

Having the right frame of mind when setting out on the process to sell your home will make it a more stress-free, manageable experience in selling.