CoreLogic, a real estate analytics firm based in Irvine, recently published a report that illustrates the strength of the local housing market. Median home prices have climbed by more than seven percent on a month-to-month basis to $715,000 across Orange County, and getting multiple offers on a single property has become the norm for many sellers. Coupled with job growth and strong demand for housing, Irvine is the perfect definition of a seller’s market, but this does not guarantee every transaction will be smooth and profitable for homeowners, particularly for those who list their properties for the first time.
If you are putting up a home for sale in Irvine, CA, and have never sold a home before, here are five mistakes you need to avoid.
1. Taking the “For Sale by Owner” Approach
Whenever market conditions give the advantage to sellers, it becomes very tempting for homeowners to try their luck with For Sale by Owner (FSBO) transactions. Invariably, the goal is to retain as much of the sales price as possible, but listing without the assistance of a real estate professional has its caveats. According to statistics compiled by the National Association of Realtors, only 8 percent of all closings in 2016 were FSBO listings, and they sold for 13 percent less than those handled by agents.
2. Overpricing the Home
Overpricing is an error often seen in FSBO listings. The incorrect rationale is that buyers will always be open to bargaining. While this is a valid strategy when there is a high supply of homes, it will often backfire in a seller’s market situation. It is better to attract buyers with a reasonable price and let them bid higher.
3. Mismanaging Repairs
First-time homebuyers rarely consider purchasing “fixer-upper” properties in markets such as Irvine. Considering these buyers are often the higher bidders, this should motivate first-time sellers to invest in home repairs. At the same time, spending too much on home improvements and other contingencies could also result in lower profits.
4. Timing the Market Incorrectly
Unless sellers are being counseled by seasoned real estate agents, waiting for the right time to sell can be a risky maneuver. Those who wish to sell quickly can do so during the spring and summer months, but even this seasonal aspect of real estate does not apply in a seller’s market. The last thing you want is to get caught in the middle of a market downturn while waiting for prices to continue rising.
5. Marketing and Advertising Poorly
Selling a property is all about making it attractive to certain types of buyers, which means choosing the right advertising channels as well as an adequate marketing strategy. Real estate agents who specialize in staging homes can transform living spaces so they can be showcased and sold to buyers with deep pockets and high credit scores. Not paying attention to advertising could result in leaving money on the closing table.
Get in touch with a reliable agent if you’re looking to sell or buy real estate. Irvine, CA, residents trust the agents at Irvine Residential Living for good reason. Give us a call today at 714-454-6304.