Our team works 12 months a year to get our listed homes sold or rented. And we are successful. However, we do need to pay attention to cycles in the market. And, as we approach Winter, we really want to emphasize to Sellers and Landlords - "Please, please don't test the real estate market at this time of year. Now is not the time to experiment." Let me explain in more detail.
Why Winter Is Not The Time To Test The Real Estate Market
1. All markets have cycles.
All markets have cycles and, even though we are busy 12 months per year, we do have fewer home buyers and tenants during the Winter months.
During this time of year, we tend to see inventory go up with homes for sale and homes for rent, fewer buyers and tenants and longer days on market. When your agent shows you the comparable prices for your home, please take heed and price your home correctly from day one. Time is not on your side and the longer your home languishes on the market, usually the less money you make.
2. Why you should not test the real estate market.
Many sellers and landlords tell us that they want to "test the market." Now I know that your home is awesome and that you have many happy memories there, but you have to be objective.
And with time not on your side during the Winter months, now is not the time to "test the market" as you will lose valuable marketing time. Especially if you have already moved out of your home and are paying a double mortgage. Also, a vacant home brings potential winter repairs like burst pipes, higher BGE bills, snow plowing and more.
We recommend that you price your home correctly from day one so that you can attract multiple buyers and tenants. By having multiple buyers and tenants, you can choose the most qualified applicant, i.e., the one who is mostly likely to close on time or pay rent on time so that you can plan your move and move on with your life.
3. If you must test the market.
If you really, really have to test the market, only test for 7 days. Not 30 days, not 45 days. 7 days maximum.
In this fast paced world, your listing will be syndicated to many sites within 48 hours. Buyers and tenants will know about your home, I promise. And if they don't call in or show up, it is due to price, condition (online photos and exterior curb appeal really matter) or access (is it hard to schedule a showing for your home?).
No need to test the market any longer than 7 days as the market will speak to you in its actions (or inactions) and you need to pay attention. No showings in 7 days, reduce your price.
4. If you can't price your home competititely during this time of year, please remove your home from the market.
With fewer buyers and tenants, an abundance of inventory and an educated consumer, it is highly unlikely the buyers or tenants will overpay for your home. So if you cannot price your home competitively, take a break, relax, regroup and go to Plan B. Enjoy the holidays and let's put a plan in place for the spring time that makes financial sense for you and your family.
Yaffe Real Estate is here to help.
Most agents tell you what you want to hear, even if it is untrue. They don't want to disappoint you and hurt your friendship or your feelings. We are not those agents. Because we are so passionate about our mission, i.e., to help you move on with your life, we feel an obligation to tell you the truth. Only with the truth can you be an educated seller or landlord and make realistic plans as to next steps.
So if you are ready to move forward, we are here to help. No pressure, I promise. Just good, honest advice so that you can make the best move for you and your family.