New Rules for Selling : What Buyers Want Today

What does it really take to sell a home in today's market? With mortgage interest rates hovering around 7.3%, buyers are more selective than ever about where and how they spend their money. Buyers are still out there, and they're still making offers, but the bar has been raised. Today's buyers need more than just a beautiful home to feel confident moving forward. As a Realtor working primarily with Sellers in Central Maryland every day, I've compiled my Top 5 list of what buyers are requiring in today’s market and what you should do as a seller to accommodate their needs, if you want to get your home sold.

I've been a full-time real estate agent since 2018, after spending the 10 years prior in real estate marketing, acquisitions, and property management. I am predominantly a seller's agent serving Central Maryland including Baltimore County, Baltimore City, Harford County, Anne Arundel County, and Howard County. Given market conditions, today's buyers are slower to act and more discerning. It doesn't mean you can't sell now, it means you need to understand specifically what buyers need in order to make a move.

Time

Regularly, I’m seeing buyers visit a home two or three times before making an offer. Buyers know that with the higher interest rate, there are fewer buyers looking, and the average ‘days on market’ is longer. They know they have time to shop for a home, and they will use it.  What are they doing on the multiple trips that they can’t do in one stop? They are first coming to see if the house lives up to the photos and will fit their needs. Photos don’t always accurately portray the size of the home or quality of its finishes. Then they are going to see other competing homes in their price range and come back to their favorites. The second time around, they are looking deeper at the age of systems to get a sense of future expenses and also evaluating how they can add value and gain equity during their tenure. The next time around, they may bring out a contractor, family, or friends to get final opinions, all before submitting their initial offer. As a seller, be accommodating to multiple showings even if it means allowing them on short notice or for longer periods of time. Ever heard the phrase “don’t rush the window shopper?” Let the buyers move at their own pace.

Move-In Ready

When buyers in today’s market purchase their homes, they ideally want to be able to move in, rather than having to do projects and potentially stay elsewhere in the interim, adding additional costs. Sellers should make sure all systems are operable, appliances are working as intended, and that honey-do list is done before you list your property. Even things that seem small to you – a drywall patch here, an extra coat of paint there, all give the impression that there is more work to do on the surface, and beg the question – what undone work lies beneath the surface? You don’t want to get the buyers’ wheels turning that deferred maintenance is piling up. Sellers – you get one chance to make a strong first impression – make sure that the to-do list is done.

Unique, In A Good Way

This year, I am witnessing a stronger divide than ever between homes that underwent a basic renovation versus those that are renovated or well maintained, and have personality. I hold my own open houses on my listings. I love getting direct feedback from buyers. The simple reality is homes that have basic gray LVP, plush carpet, fresh neutral-colored paint, white cabinetry, and quartz countertops are just not giving the ‘wow’ factor that buyers are seeking in this market. Homes with warmer tones, painted or wallpapered accent walls, built-ins, niches, archways, interesting light fixtures, and slightly more unique tile work are selling faster; buyers see these as more ‘special’ and less cookie-cutter. Even if your home is currently an example of the former, strategically painting certain areas, adding display shelving, swapping out basic light fixtures and cabinet hardware can go along way. Sellers should take a look at how they can create more character and charm, even if it’s on a budget. A good stager can also add furniture to empty spaces or supplement accessories to your existing setup to make your home more appealing to today’s buyers.

A Cheaper Rate

With interest rates currently being at about 7.3% for a 30-year mortgage, buyers are remorseful about not purchasing when interest rates were lower, and also questioning if now is the time to buy or if they should wait in the hopes that the mortgage interest rate will go down in the future. Don’t be surprised when buyers ask for seller help or concessions not only toward their out-of-pocket closing costs, but also to buy down their mortgage rate. Roughly speaking, a buyer can pay 1% of the loan amount to reduce the interest rate by about .25%, reducing their monthly mortgage. Of course, there are limitations on how far the buyer can buy down the rate. As a seller, be open to seller concessions – it helps buyers reduce their cash at closing and/or buy down their interest rate, so their mortgage is more affordable and moving forward with a purchase is actually feasible. Your openness on this front can mean the difference between a buyer submitting an offer or not.

The Ability To Negotiate At Inspection

If you’re going to an expensive steak restaurant, you’re going to be pickier and more judgmental about the experience than you would be of a cheaper burger joint. You’re going to want the steak cooked just right, with the right sauce, complimentary sides, and perhaps a wine pairing. Buyers purchasing a home when the mortgage interest rate is a bit higher, and therefore buying the home is more expensive, feel the same way. They want the experience to be ‘just right.’ They want to negotiate the price, make sure they ask for seller help or concessions, get inspections and negotiate for repairs or credits towards deficiencies. Buyers are paying a premium price, so they expect to get a premium product, or concessions to make it a premium product. I’ve seen several sales fall apart this year when sellers were hard-nosed on repairs, and later regretted it when they spent several additional weeks on the market trying to find another buyer. Expecting a buyer to purchase a personal residence as-is or without asking for repairs or credits toward repairs, in this market, is pretty unrealistic. If you want to sell right now, when some sellers aren’t able to get their homes sold, you need to have some flexibility on this front.

The bottom line? Homes are still selling in today's market, but sellers who understand what buyers want—and are willing to adapt their approach—are the ones positioning themselves for a successful sale. A little preparation, patience, and flexibility can go a long way toward turning an interested buyer into a committed one.