A couple in their early 30s from Idaho — a nurse married to a lawyer — are eager to sell the tiny two-bedroom rambler they bought before the pandemic. Given their raises, they are now seeking a brand new apartment with an upscale kitchen and a larger bedroom for their 6-year-old daughter. They also crave a spacious home office.
“Our house is so small that we call it our 'mouse house'. We waited and waited for lower mortgage rates. But we won't wait any longer. We are actively looking for our next house and want to move on as soon as possible. Nevertheless, our first step must be to sell our current house,” says the nurse.
Maya Hyman, an agent with real estate brokerage Compass, does not know the couple in this true story. However, she warns that sellers may face even stronger headwinds in the near term.
“Right now the overall market is sluggish,” says Hyman.
One problem is that sellers have relatively less bargaining power than they did during the pandemic, when available supply was extremely tight and demand for housing in many neighborhoods far exceeded available supply.
Recently, the balance between supply and demand has been gradually shifting toward buyers as the number of available listings steadily increases, said Jiayi Xu, an economist at Realtor.com, the real estate brokerage service. She notes that the inventory of homes for sale has increased more than 23% since last year.
Lauren Davis, an agent with real estate firm Sotheby's, encourages would-be sellers to avoid arrogance when deciding on a listing price.
“It may be a good idea to price your property aggressively, perhaps even 10% below current market value. Since buyers are now very keen on property values, if the price is realistic, your home is likely to attract more interest, leading to more bidders coming along,” she says.
Here are a few tips for winter home sellers:
— Don't ignore the winter months when selling your home.
You may regret missing the traditional peak of the home selling season, which runs from spring to early summer. You might think your home could have fetched you more money back when there were more interested parties looking.
But the factors that most influence markets are less seasonal than in previous years, says Ronald Phipps, former president of the National Association of Realtors (nar.realtor). An affordable home in good condition located in a popular community should sell well at any time of year.
“The date you sell is less important than the price and the supply-demand ratio in your neighborhood,” says Phipps.
No matter when you put your home on the market, he urges you to avoid the most common pitfall when selling a home: pricing based on wishful thinking.
“Buyers are better prepared, more informed and more self-disciplined than ever before. You can’t trick them into spending more than your house is worth,” says Phipps, who runs a family-run real estate business in Rhode Island.
Admittedly, there are fewer prospective buyers looking for property in the winter months. However, he says those looking during this time are mostly serious buyers who need to move due to a job change or another compelling reason.
– Be aware that your children will probably adjust well to a mid-year change of school.
Many parents hesitate to sell their home during the winter months because they fear their children will have a difficult time switching to a new school in the middle of the year.
But William Bainbridge, an academic expert on school choice, says students who transfer midyear often do better than those who do so in the fall.
One reason for this is that students who transfer mid-year are typically bombarded with attention from teachers and classmates. In contrast, those who start a new school in the fall typically receive less academic and social support.
However, he advises parents of high school students to check with the new school to make sure their credits will transfer. This is particularly important for students taking rigorous pre-med courses, including Advanced Placement (AP) courses.
— Keep your seasonal decor for winter home tours.
Real estate agents typically encourage home sellers to “neutralize” their properties to make them more attractive to a broader range of buyers. That means repainting walls in bold colors in a light shade and removing personal items like family photos or a collection of bowling trophies.
But Phipps says owners who are conducting viewings during the winter holiday season don't have to take down their seasonal decorations before potential buyers come by.
“In fact, seasonal wreaths and other general holiday decorations give shoppers a warmer, more calming and hugging feeling when they enter your home,” he says.
— Recognize that there is room for confidence regarding short-term home sales.
Given the economic uncertainties surrounding the new administration in Washington, some potential home sellers were nervous about selling soon. But Rafael Corrales, a Miami-based Redfin agent, says sellers' optimism is finally justified.
“The market was stagnant in the months leading up to the election, but within 48 hours of the results being announced I received more requests for home tours. We’ve definitely seen an increase in demand on the buyer side, but not so much on listings,” says Corrales.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)