What Brooklyn Homeowners Should Know About Selling Now

Many Brooklyn homeowners are debating whether to sell now; you need to understand what is going on with home prices. With all the news, you may still be determining whether now is the right time to sell your home. 

Remember that news outlets design headlines to make big impressions. Are they genuinely accurate? 

Indeed, home prices are down slightly month-over-month in some markets, but nationally home values are up on a year-over-year basis. Based on national statistics, the median house sales price was up +5% year-over-year as of October 2022.

Year-over-year is a method of evaluating growth by comparing a statistic in one time period with the same time period one year earlier.

We hear on the news that home price growth has moderated recently as buyer demand has lessened due to higher mortgage rates. That is a true statement. However, prices are still doing well in the real estate market.

You need to understand that the percentage of appreciation is still well over what we saw during the years before the pandemic and market explosion. Between January 2019 through mid-2020, the appreciation rate was around 3-4%. The latest statistics show that this year’s home prices have climbed roughly 10% over last year.

Ten percent appreciation is a significant rate compared to the average of 3-4%. It is undoubtedly below the 20% appreciation we saw earlier in 2022, but it is still an impressive number.  

If you have owned your home over the last two years, you have probably recognized a substantial amount of equity in your home as the home prices climbed. And even now, as the home prices moderate, you may see an increase in your equity. 

Mark Fleming, Chief Economist at the First American Economic Center, stated in his report on November 28, 2022: 

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

The experts are not expecting a crash in housing prices. However, as prices moderate, factors such as local supply and demand will determine the level of moderation for each market. 

Consulting with a trusted real estate advisor who understands your local market is the best advice if you are interested in selling to determine your home’s current fair market value.

The market’s reaction to moderation is not within a seller’s control. But the areas you can control can become barriers when looking for a quick sale. For example, no longer can you put a sign in your yard in the morning and expect multiple offers by dinner.

However, homes are still selling at reasonable prices.

Some simple tips to get your home ready for sale are the tried and true tips that work for selling a home.

Price your home correctly. 

There are five factors to consider when pricing your home:

  • Location
  • Comparable home sales
  • Condition
  • Updates
  • Market Conditions

An experienced local real estate professional understands what is happening in the local market. They study and track the current trends and can provide you with the statistics for your local area.

In this previous blog post, I explain the pricing philosophy in depth.

Prepare your home for sale.

It is essential if you want a quick sale to thoroughly prepare your home before the sign goes in the yard. You have one chance to make a first impression. 

All preparation must start with a deep clean and decluttering inside and out. Inside you should go room by room, decluttering and cleaning as you go. Outside, you may need to powerwash the exterior decks or siding, clean windows, and tidy up the landscaping.

Stage your home.

It is vital to present your home’s best features. That is the purpose of staging a home. Psychology to staging allows the buyer to see the best features of your home and to imagine themselves living there.

Brooklyn homeowners should strive to make their homes look bigger, brighter, and more inviting for the homebuyers that walk through the door. To do this, you need to think like a homebuyer:

  • Buyers want a move-in ready home.
  • They believe that if the seller doesn’t make an effort to prepare their home for sale, there are probably neglected, non-visible high-ticket maintenance items too.
  • Buyers are more likely to offer a better sales price if the home presents well.
  • Only 10% of buyers can visualize a home’s potential and can not see past the clutter and uncleanliness.

When staging your home, you must be objective and keep the buyer in mind. If you find it difficult, hire a professional home stager to help. A home stager is not emotionally attached to the home like you may be and can objectively provide you with advice.

Hire a real estate professional.

Given the skewed news reports an unprecedented real estate market, it is understandable that Brooklyn homeowners need clarification about whether they should sell their homes or not.

Selling a home can be stressful, no matter the market. Hiring an agent to guide you through the process can alleviate some stress. There is much to know about the real estate process to attain a smooth transaction when you are ready to sell your Brooklyn home. 

A real estate professional can do the research and recommend a fair asking price. They know the process and have the negotiating skills to help you obtain the best results. 

They study the market and understand the current trends in the local area that may affect you as a Brooklyn homeowner. Then, a real estate agent will guide you in presenting your home in the best possible light based on what the current buyers in your market want.

Your real estate agent will professionally market your home to obtain the proper exposure to the available buyers. Help with staging, professional photography, and internet exposure of the house are all part of a real estate marketing plan they can provide.

You may wonder if selling a home in the winter is a good idea. There are some excellent reasons to sell during the winter if you are ready.

  • Competition with other sellers is low because fewer homes are listed now.
  • Internet searches increase during the winter as most homebuyers start their search online.
  • Many promotions and relocations happen during the first part of the year.
  • Year-end bonuses give some buyers the extra cash to purchase a home.
  • Buyers looking in the winter tend to be more serious about buying a home.

If we could look into a crystal ball, we would know exactly what to expect. For now, though, we will need to rely on the expert’s predictions and watch our local market. There is no guarantee, but the forecast isn’t as gloomy as the headlines make it seem.

Contact me, Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate, if you are considering buying or selling a home. As a Brooklyn real estate agent with over 35 years of experience, I have been helping Brooklyn Homeowners with advice and resources. Reach me by phone at (718) 253-9500 ext. 1901 or by email at [email protected].

Charles D'Allesandro

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