The Biggest Challenges Sellers Will Face In 2020
The New Year is all about setting goals. Maybe selling your home is one of yours for 2020 and we are here to help you get that ‘For Sale’ sign up when you are ready. There are challenges that most home sellers face at any time of year, but a recent survey of 500 leading real estate agents outlines data that will get you ready for selling in 2020. We’ve reviewed HomeLight's top agent insights survey from Q4, and culled the most helpful information you need to be aware to tackle the biggest challenges sellers will face in 2020.
It’s about balance
The 2020 real estate market will likely see a shift to a place of balance — where buyers and sellers have equally favorable conditions — but it may not stay that way. One of the key challenges to keep in mind this year is that you won’t necessarily be working in a seller’s market. Agents in the HomeLight survey reported that a sellers’ market peaked in Q2 2019 and gradually shifted toward more balanced conditions in Q3 and Q4. Predictions for 2020 suggest that the market will continue to soften. Nearly 44% of agents anticipated balanced conditions for their local market in 2020 while 15% say they’ll see a buyer’s market.
Beware of overpricing
When faced with a sellers’ market there might be a tendency to overprice your home, which can make getting from “for sale” to “sold” take longer — that’s why working with a professional every step of the way is essential. In the HomeLight survey, nearly 50% of top agents said the biggest challenge people faced selling homes in 2019 was the temptation to overprice, even as buyer demand remained strong. As prices flatten or even decline in some areas, heading to that balanced place, you’ll want to stay aware of market conditions in your Florida neighborhood, as that will impact your pricing strategy.
If it’s not broken, don’t fix it
Another concern with overpricing any time of year, is that it can lead to buyers requesting more repairs on your home before they close on the deal. In the survey 14% of agents reported that more requests for repairs — for issues like structural defects, code violations, or safety concerns —presented the biggest hurdle with selling a home.
Rethinking the open house
Open houses are a tradition that dates back to the early 1900s, and in this digital age, top agents are questioning if they are still relevant. A little over half of top agents who participated in the survey (52%) recommended an open house as part of their strategies, while 48% did not. Where you live can determine whether or not an open house is a tactic to consider: If you live in an interesting neighborhood an open house might be the way to go, and 32% of top agents in the survey said a location in a bustling or trendy area is the top factor that makes a listing a great candidate for an open house. But in general, agents across the nation are ditching the open house for online and social media marketing. In the survey, agents on average, ranked the effectiveness of open houses as 4.4 on a scale of 1 to 10.
If you keep these challenges in mind as you look to sell your home in 2020, you’ll be well on your way to success.