For the last couple of years, real estate markets in Birmingham and surrounding markets have been booming. Houses have sold quickly and often above the asking prices. However, rising interest rates and volatile economic conditions are causing a shift in real estate markets in the region and across the country.
If you’re considering listing your Birmingham house, you don’t need to panic over these changes. That said, it’s essential to understand how these shifts impact real estate markets and what sellers should do to address these changes.
Rising Interest Rates and Demand
To combat inflation, the Federal Reserve has steadily raised interest rates for the last few months. After the Fed’s most recent rate increase in late September, mortgage rates have risen to 6.29%, the highest they’ve been since 2008.
High-interest rates make homeownership more expensive and reduce buyers’ purchasing power. The result is that rising interest rates generally mean fewer buyers and decreased demand in real estate markets.
How Sellers Should Address Changing Real Estate Markets
While high interest rates are concerning if you’re considering selling your home, they don’t make it impossible to sell a home. Instead, sellers need to be aware of these changes and proactively address them when preparing to list their homes.
Here are a few things sellers should keep in mind given the high and rising interest rates:
- Start by adjusting your expectations. While it was typical for a house to sell in a day in 2021, that is no longer the course. Additionally, it’s not as common to see homes selling for above the asking price. In fact, it’s more common right now to see price reductions on listings. Markets have cooled and sellers need to adjust their expectations from the outset.
- Pricing is important. For a while, it seemed like there would be no ceiling on housing prices, but rising home prices have stabilized in the last few months. Sellers need to be strategic when pricing their homes and not overly aggressive. If you’re planning to list your home, it’s a good idea to work with an experienced realtor who can price it appropriately based on your neighborhood and current conditions.
- Be patient. We’ve all heard recent stories about houses selling in just a few hours. That just isn’t the case anymore. Houses are sitting on the market longer, and sellers need to be prepared to wait longer for offers and a contract.
Make Your House Stand Out
Given these shifts, it’s more important than ever for sellers to work to make their houses stand out from others on the market. Getting a house ready for the market can be stressful and time-consuming, but a few extra touches can go a long way toward making sure that your home sells quickly.
Having a move-in-ready home, as opposed to one that needs a lot of work, is ideal. If you can complete some repairs, updates, and upgrades to make it ready for buyers to move in, it will sell more quickly. In addition, consider doing some of these small upgrades to help distinguish your house:
- Paint all interior walls a light, neutral color.
- Declutter the spaces and remove personal items.
- Replace dated or broken tiles in the bathrooms or kitchen.
- Update fixtures or hardware that look dated or need repairs.
Once you have your home ready to list, it’s important to be strategic about the listing and marketing process. Here are two key tips to make sure your house doesn’t sit on the market for too long:
- Work with an experienced agent that has a track record of success selling homes in your area.
- Take professional pictures. An experienced agent will generally arrange this, but it’s something sellers need to be aware of. The listing pictures have a big impact on how quickly a house sells, so it’s worth it to use a professional photographer.
Alternative Ways to List Your House
Another thing that Birmingham homeowners should keep in mind is that there are ways to sell their homes besides working with an agent and listing on the MLS. Cash buyers are always an alternative that sellers should consider, but they can be particularly attractive during periods of high inflation.
Cash buyers aren’t impacted by rising interest rates because they’re not getting a mortgage. Their process works quickly and seamlessly regardless of the market conditions. Here’s how most cash buyers work:
- You contact them to set up a time to view your home.
- They’ll provide you with a cash offer.
- If you accept the offer, you pick a closing date.
- The buyer covers all closing costs and fees. You show up at closing and walk away with cash in hand.
Contact Home Buyers Birmingham
If you’re interested in learning more about selling your Birmingham home quickly, for cash, contact Home Buyers Birmingham. We buy houses as-is, regardless of the condition. We’ll give you a cash offer within 24 hours of seeing your home and can close within 7 days.
If you want to sell your Alabama home quickly without having to put more time or money into it, we’re here to help. Call us today at (205) 687-0604 to learn more or get started.
Home Buyers Birmingham
1821 11th Avenue South Suite #55331
Birmingham, Alabama 35205