Though it might feel like a buyer’s market, we would need to cross six months of inventory to technically enter into a buyer’s market. Until we see interest rate relief and a meaningful reduction in home values, conditions are still tough for buyers and sellers. The only real positive news for home sellers we have seen in 2024 so far is that values are relatively flat instead of a significant decline as many expected. A few markets have fallen slightly while some have seen a marginal increase. With that said, real estate is hyper-local and smaller sub-markets have seen greater declines than others. 

The Impact of Interest Rates and the Impending Rate Reduction

Interest rates have had a profound impact on home sales in 2024, primarily by influencing both buyer affordability and seller expectations. With borrowing costs increasing significantly, mortgages are more expensive for potential buyers, thereby reducing their purchasing power and overall demand for homes.

For sellers, the impact of higher interest rates has been twofold. Firstly, the increased cost of borrowing has reduced the pool of qualified buyers, making it more challenging to sell homes quickly. Sellers could get lucky with an all-cash buyer, but the majority of buyers still seek financing. Secondly, sellers are now facing higher inventory levels, as evidenced by the significant increase in active listings across Texas cities. For example, active listings in Dallas/Fort Worth are up by 44.7%, creating more competition among sellers and putting downward pressure on home prices.

There may be some relief in sight, with the Fed teasing a potential September interest rate cut from the year-long average of 7.20%. The Wall Street Journal reports that the Fed policymakers "indicated that inflation was getting closer to the level where they would be comfortable cutting rates" and "Investors have been betting on rate cuts starting before the end of this year, possibly as early as September." But most economists believe any rate cuts will be incremental, giving the Fed time to measure each cut's impact on inflation before further reduction.

5 Tips for Sellers Who Need to Sell in This Challenging Market

Selling a home is considered one of the most stressful times in life. One study found that 36% of sellers said it was more stressful than planning a wedding, losing a job or having a first child.  Selling in this tough market only adds to the anxiety. But there are at least five tips you can use to make the process less scary and uncomfortable.

Tip #1: Price it to sell

The number one factor when it comes to selling a home in a challenging market is the price. Being able to analyze and understand what is happening in your local market and neighborhood is critical. Looking at sold comps is important, but with climbing inventory and longer days on the market, keeping a pulse on active listings and seeing which homes are going pending and why is even more essential.

If you see homes on the market around you adjusting prices lower, you may need to follow suit to stay competitive. If you price the house competitively, it will sell. If you don't, you must have a darned good reason for the higher price, such as killer views or high-end updates. Remember that your house, even if you believe it to be worth "X," is only worth as much as someone is willing to pay for it. Because home buying is an emotional investment, buyers must see the value for the price or they will continue their search. In this market, with interest rates higher than normal, buyers are more hesitant to lock into a high-interest mortgage.

Tip #2: Take every offer seriously

When the market was on fire back in 2021 post-Covid, it was easy for a seller to scoff at an offer that was under the asking price. Those days are over, at least for now. With the market shift, you can expect buyers to take full advantage of the situation. Negotiating is once again part of real estate transactions, and there is a good chance you'll get a lower offer.  Don't take it personally. Buyers are looking to save wherever they can and view the purchase as an investment. With the high interest rates, their impending monthly mortgage payments will drive them to negotiate the asking price.

What happens if you don't get any offers? That's a good indication your sales price is too high for the perceived value. All is not lost. You can always lower your asking price, but timing is everything. Bankrate says the first 21 days on the market is your best opportunity to sell, so if you're nearing that mark, it's time to consider a price reduction. Some are even more aggressive, suggesting waiting only 10 days on the market before reducing the price. The key is to not give buyers a reason to think something is wrong with your property or that it's the ideal opportunity to come in with a much lower offer.

Tip #3: Maximize your home's exposure

The more eyeballs you get on your listing, the better shot you have at selling. Make sure your for-sale listing is everywhere a buyer could possibly be looking online. Today, 97% of homebuyers find their homes by looking online. The number one online resource to list your home is the Multiple Listing Service (aka "MLS"). Not only does your listing post on MLS but your listing gets syndicated to hundreds of real estate sites and search portals, such as Zillow.

But the MLS isn't a publicly accessible platform. Only real estate agents and brokerages can post listings. There are flat-fee MLS listing services you can get to post your property listing, but that's all they do. You won't get any pricing data to help you price your home, no negotiating expertise or marketing assistance, and zero technology to help you sell smartly and efficiently.

If you rely on For Sale By Owner sites in the FSBO section of Zillow, you're never going to reach every prospective buyer. Most buyers are not looking specifically for FSBO listings, anyway, and few even know there is a Zillow FSBO filter. They are scanning MLS listings, FSBO or not, and setting up alerts when new listings with their preset qualifications pop up.

Tip #4: Post a high-quality listing

Your property listing is like a commercial for your home. If it looks amateur, it has a high chance of turning off searchers. Photos are not where you want to skimp. In fact, NAR found that "roughly 89% of homebuyers said photos were the most helpful website tool in their home search experience." U.S. News Real Estate reported that homes with professional listing photos sell faster and for significantly more money. 

Beyond professional photos, your listing should include a robust property description, properly completed listing details, and easy-to-access showing instructions to stand out among rising inventory and competition. Remember that your listing will be seen alongside those created by professional real estate agents, so you want it to look just as professional.

Tip #5: Be responsive and flexible

In a slow market, buyers are not always beating down your door to get a showing. Showings happen more sporadically, so it's critical to be hyper-responsive to agents or buyers who reach out and inquire about your home or request a showing. Most buyers have plenty of options and like to book multiple showings in a day, especially if they are from out of town. If you are slow to respond, it's easy for them to move on to the next home. 

On a related note, be sure you are flexible with the showings. Even when someone wants a showing at an inconvenient time for you, try to make it work if at all possible. If you say no to a specific day or time, you may lose that opportunity forever. Yes, it can be a pain to make your house "show ready" and drop everything for a showing, but the whole point is to sell. The harder you make it for prospective buyers, the less likely it is that you'll receive an offer.

How a Company Like ListingSpark Can Help You Achieve Your Goals

Selling your home on your own can be intimidating. The truth is, hiring a real estate agent has been the norm for as long as most can remember. But just because it's how things have been done for decades doesn't mean it's the only or best way. Plenty of people are waking up to the fact that home selling doesn't demand an agent and by bypassing the status quo, home sellers can often keep more equity in their pockets.

Likely the biggest hurdle for homeowners to embrace FSBO has traditionally been that they are left on their own. Unless you are a licensed real estate agent or broker, you likely don't know exactly what to do, when to do it or have any technology to help. Even if you do sell on your own, statistics show most FSBOs sell for less money and take longer to sell due to a lack of resources or support. But that is changing, thanks to technology and companies like ListingSpark that give FSBOs all the tools, technology and support they need to sell at an equivalent or often greater price and faster than an agent can offer.

ListingSpark is an innovative way to sell your home and is unlike anything you have experienced or maybe even heard before now. Particularly in a slow market, ListingSpark gives you a competitive advantage that other traditional agents or brokers can’t. We'll explain.

Pricing

As we said before, pricing is the key factor when selling a home with an agent or FSBO. When it comes to pricing, ListingSpark helps in two different ways: 

• All ListingSpark customers get an in-depth market analysis with valuable data to help make the best pricing decisions.
• ListingSpark's low, flat-fee model saves thousands of dollars (and in many cases tens of thousands) in listing commissions. This gives you the freedom to price your home more aggressively than other homes in your area, which are hamstrung by the high commissions charged by their agents. ListingSpark clients can choose a more aggressive pricing plan without sacrificing their hard-earned equity. 

Negotiating

ListingSpark’s platform has a proprietary negotiation platform that helps you analyze every offer and negotiate the best deal for yourself. If you need some extra help, ListingSpark’s incredible Agent on Demand service has one of their expert, licensed real estate agents step in to negotiate on your behalf. Just look at our reviews, and you'll see how many ListingSpark customers mention how great their ListingSpark agent was during the process. Here are a couple of recent Google reviews:

"I absolutely would use ListingSpark again! They saved us a ton of money and we sold our home quickly. We used Agent on Demand, and I'm not sure how we would have done it without [their] excellent help." - L. Kehoe

"Our ListingSpark team was responsive to all our questions in a timely manner. We chose to use an agent on demand and [he] was so helpful in our negotiations with the buyer." - K. Morales

Marketing

With ListingSpark, your home will be listed on your local MLS and all of the other major real estate sites, such as Zillow.com, Realtor.com, Trulia, etc. Your home will be everywhere a buyer would be looking. 

We give all of our clients a top-tier listing in a few different ways: 

• ListingSpark uses time-tested tools, such as high-quality professional photos, a professional for-sale sign, a digital supra lockbox and many other battle-tested methods.
• Cutting-edge AI tools make collecting your home's information simple and easy, ensuring an accurate and complete listing is posted. We utilize ChatGPT to generate the perfect property description.

Ongoing Support

The ListingSpark award-winning customer success team is open seven days a week to respond quickly to our clients and answer any questions or inquiries that may come in from buyers or their agents. Our team of experienced professionals works around the clock to ensure that your listing gets the attention it deserves, giving you a huge advantage without the exorbitant price tag that comes with a traditional agent.

You Can Sell With The Right Tools

Navigating the current real estate market can certainly be challenging, especially with the shifting dynamics we’ve explored. However, by being strategic and informed, you can still effectively achieve your selling goals. 

Key Takeaways 

• While some areas are seeing modest price increases or declines, the market has moved towards a more balanced state overall. This means sellers need to be more strategic with their pricing and marketing efforts.
• Climbing inventory levels and longer days on the market indicate a greater supply of homes than demand, making it crucial to price competitively and remain flexible in negotiations.
• Maximizing online exposure and maintaining high-quality listings are essential steps in attracting potential buyers.
• Responsive communication with interested buyers or their agents can significantly increase the speed of selling your property in a slower market.

Given these market conditions, opting to sell your home without a traditional real estate agent could be a savvy move. Companies like ListingSpark offer innovative solutions that provide the tech-enabled tools and personal support needed to navigate this market effectively, all while saving on hefty commission fees. This allows you to be more competitive with your pricing and ensures your home gets the attention it deserves across various platforms. Utilizing expert pricing strategies, professional listing tools, and robust negotiation support, ListingSpark equips you with everything you need to sell your home confidently and efficiently.

By leveraging modern technology and comprehensive services, ListingSpark empowers you to take control of your home-selling journey and ensures you get the best possible outcome in today's real estate market. Get started with ListingSpark and sell smarter.