Whether you sold a home in the past few years or not, you’re probably well aware that houses have been selling fast, often with multiple offers, and well over asking price.
But everyone also knows it won’t always be like that. The real estate market is cyclical, and we’ve been experiencing a strong sellers’ market for quite a while now. So at some point it will certainly shift in favor of buyers, at least to some degree. When is that likely to happen? Nobody knows for sure. But it’ll start happening at some point, and when it does, it will happen fast. So it’s good to be aware of that and keep things in perspective if you’re thinking about selling in the near future.
This doesn’t mean that we will see a massive reduction in prices. There are so many different predictions about whether prices will fall, or just stabilize, but most theories are that prices just won’t continue to rise. Or if they do, it will be at a much slower rate. Buyer activity is projected to cool off some time this year due to rising interest rates, which could lead to fewer bidding wars and ultimately lower offers for San Ramon home sellers.
Hopefully, the market won’t take a drastic hit for sellers. It will just cool off. This would be good for buyers and sellers alike. Sellers would still get to benefit from the gains of recent years, while buyers would get some breathing room and the ability to make less rushed decisions without competing against multiple offers every single time.
Set Realistic Expectations
People have gotten used to hearing that homes in San Ramon are selling in days, with multiple offers, and over asking every single time. But even if the market change isn’t drastic for sellers, there’s a chance you won’t experience what other sellers have over the past few years. Your expectations could be higher than they should be and cause you to worry more than you should and make poor decisions.
If your house is on the market now, or in the near future, prepare yourself to experience a few things:
More days on the market. Your house may not sell in the first week or two.
Price reductions. You may have to adjust your price down a bit if buyers aren’t making offers after a certain period of time.
You may not get multiple offers. There might not be as many buyers fighting over your house as you might have seen in the recent past.
Be prepared for the possibility that at some point the market may change quite dramatically, but in the near future, you’re more likely to experience the above signs that things are changing. Does that mean you shouldn’t plan to sell now? Not at all.
The chances are, you’ll still sell your house for more than it would’ve sold for a year or two ago, but it may take a little more time, and you might see less demand than you anticipated.
But it’s easy to get concerned that the market is “bad” all of a sudden, or even think that your agent is doing something wrong, or not doing enough to get your house sold, when the likelihood is that it is just the market changing. Michelle and I have been listing and selling homes for over 20 years and we’ve experienced every kind of market there is. This is really nothing new but it takes a little getting used to.
Expecting these subtle shifts, and keeping the bigger picture in perspective, will help you keep your cool when the market cools, and help you avoid making any costly mistakes.