How to Sell Your San Diego Home in a Slow Real Estate MarketNovember 21st, 2022
Many San Diego sellers are discouraged by high-interest rates and a looming recession. Potential home sellers may feel there are better times than now to sell their houses.
However, it is still a good time to sell. Read on to find effective ways to sell during a market slowdown.
Ideas for San Diego Sellers During a Market Slowdown
You may not receive multiple offers, and it is doubtful you will receive over the asking price; that is something you may have to accept is in the past. If You are holding your breath, waiting for a market like that to come around again, you may end up unconscious.
The truth is there have been far worse markets than the one we currently find ourselves in, and if you are in a position to sell, you can do several things to get your home sold quickly.
Offer an Interest Rate Buydown
Since most homebuyers are worried about what a 7% interest rate will do to their monthly payment, helping them with a lower initial interest rate will make their mortgage payments more doable.
An interest rate buydown, such as the 3-2-1 Buydown, is generally arranged between the buyer and their lender. However, sellers can extend a buydown to their buyers.
In a seller-paid buydown, lenders allow the seller to credit part of the sale of their home to the buyer, also called a seller concession.
Seller concessions are typically used to pay the buyer’s closing costs; however, seller concessions can also be applied to pay mortgage points, lowering the buyer’s interest rate.
Offer Help with Costly Items
Whether it is your roof, your HVAC, your energy-efficient appliances, or the chlorination system of your pool, if your home is not newly built, these big-ticket items will likely need to be replaced soon. And if you offer to make these costly repairs before the sale, that could help entice a buyer on the fence.
Offer to Cover the Home Warranty
Adding some security to the sale of your home may be just what a buyer is looking for.
Offering to pay for a home warranty that covers costly repairs may make a little higher mortgage payment not seem as bad to prospective buyers. In fact, according to the National Realtors Association (NAR), in 2020, the incentive used most by sellers was a home warranty.
NAR reported that 17% of sellers nationwide offered a home warranty incentive; that is more than closing costs, which was 14%, or credits toward repairs which was 8%.
The typical home warranty contract in San Diego is 12 months and ranges between $250 to $2,400.
Use a Strategic Plan for Price Reduction
Many San Diego sellers have no choice but to drop their asking prices. However, be strategic in your price cuts.
Of course, buyers will notice your home if you cut your price by 10%; however, that is a big chunk of change – and once you make a drastic cut like that, if you don’t sell, what’s next?
Instead, do what the CEO of Rent to Own Labs in Orlando, Martin Orefice suggests. “Start by doing plenty of research on pricing in your area in order to establish a baseline price, and list your home at that price for starters.”
Orefice advises reducing the asking price by 1% each month if your home isn’t seeing any activity.
Offer a Surprise
Although you may not often see sellers throwing in a large item to incentivize buyers, high-end appliances like smart refrigerators, big-screen TVs, solar panels, and even cars are used to attract buyers.
The Bottom Line
A market shift comes with anxieties and concerns- we are experiencing a slowdown in the market; however, people still need homes to buy. Get creative, think outside the box, and talk with your real estate agent about ways to incentivize buyers in your area.
If you have any questions concerning the market or are considering buying or selling your San Diego County home, let’s connect!
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