Summer 2024: A Much Stronger Season
As spring approaches and with kids nearing the end of their school year, people begin thinking about moving and buying another home.
Homeowners have had considerable time to be psychologically prepared to move, and are likely content with the price they believe they’ll get. But it is always April, May, June, July and August where homes are listed, and buyers show up on en mass to bid. They’ll have long daylight hours to visit, including evenings which are more convenient for everyone.
This is the peak season coming for the housing market and stats show listings will be much stronger this summer. There will be more than twice as many home listings to compete with as the housing market returns to historic norms. And on the first rate cut announcement by the FED, even more homes will be listed. Which is why it’s wise to market your home professionally, with a Realtor, given FSBO attracts predators and increases risk — not the experience you hope for.
This graphic below shows how listings peak each year in the May to August period.
And with warmer spring weather, right now, you have time to present your home in the best possible light with a real strategy to get a better price.
The recent lawsuit against NAR and Realtor commissions doesn’t take away from the potential value of a real estate agent to attract the right buyers, craft great offers, and sell your house for much more. There are agents too who are experts at building bidding wars if you want to max out your profit.
Selling Professionally
Something to think about is that if you don’t sell it professionally, the property value is perceived to be less, and you’re delivering an “as is” offer to buyers. A good Realtor, one with a proven strong marketing program can negotiate better and maximize reach. Too many sellers resort to agents who have no reach and don’t market — meaning their sales skills are in question too.
If they can’t market themselves, then how well will they represent you?
A Realtor is a marketer and seller of homes. If they don’t market or advertise, why would you overrate their selling skills and believe they can generate the results you want. Focus on qualified lead generation. Only the top marketers will help you generate more good leads and win tens of thousands of dollars (or hundreds) more in sales price which means their commission is paid for.
Now that commissions will be negotiable, you might be able to access Realtors who wouldn’t work with you in the past. But ensure they are talented real estate marketers.
Finding a Realtor
And this is when most sellers find a Realtor and list their properties. Those Realtors with the strongest marketing and best brand image tend to get hired. Sellers often hire the first Realtor they find (or check out). These are the Realtors you’ll be meeting this summer.
The housing market of the summer of 2024 won’t be any different. However, the demand for buying has been held back for 2 years now with mortgage rates leaping to 7%. Millennials are very eager to own a home, build equity and start a family and they are the key driver of the housing market. So there is a potential for a big increase in sales this summer regardless of what happens with interest rates.
Buyers and sellers are uncertain about whether home prices will rise or fall. They likely will fall if there is even one rate cut by the FED, which is more symbolic than anything. That first cut is a reminder that big rate cuts are coming in 2025/2026 where mortgage holders can finally refinance.
Quite a few hopeful buyers have saved considerable sums to use for their down payment. They’ve improved their credit scores and they can access the secondary mortgage market for the best short-term rates possible. They have a good chance of buying this summer and as fate would have it, there are more home listings this year than last. Zillow says 283645 single family homes are listed for sale in the United States right now.
So given the fusion of all factors, summer is the best season to sell a house. You’ll get maximum exposure to buyers, more leads, more showings, and more offers in this season. With so many buyers looking, you’re likely to get your asking price.
How Can Sellers Use the Summer Season to Get a Better Price?
- ensure your listing is well written, has excellent photos showing key features that buyers are excited by
market strongly to ensure you have the maximum exposure to qualified buyers - create a big weekend event to get buyers competing in a set period, so emotionally they’ll put in a better and commited offer.
- ensure you’ve fixed the worst features of your home and property as this reduces doubt about the value of your house
clean out your house of personal decorating and have it staged properly - make your street curb appeal the best it can be since drive-by buyers will discover it with your sign on the lawn
- find out who is also selling in your neighborhood, have a friend or Realtor visit them and note their strengths then improve your home to beat their best value.
- make some inexpensive improvements such as new faucets, light fixtures, some landscaping, new toilet, clean the bathroom so it’s spotless because it’s just a reminder to them that they can remodel it to their liking. It’s their dream home vision that matters, not the improvements you made.
Your Realtor or listing agent will have other more detailed ideas about positioning your house for a higher selling price. They know the local market and what drives buyers to bid high so they are worth their commission. They’ll help you establish the right selling price to draw in enough qualified buyers and have the marketing and sales skills to help you get the best price possible.
May, June, July, and August are the best months to sell your home. There are more buyers, more readiness and intent, less price consciousness and it’s the time that the transaction must take place.
In your phone and in-person discussions with buyers, you should focus on their need for the home and why it must happen soon. Talk about their preparations, kids, jobs, frustration, hopes, feelings about renting and building equity, desire for your community, and how they deserve to have a great home.
A Realtor is a salesperson, but you are a real person who owns their dream home. Therefore, what you discuss with them has the biggest effect on their commitment, intent and confidence. It’s between you and them, and you could sweeten the deal for them at the right time. There will always be friction points or issues that might get in the way. This is where you become the hero for them and pave the way to the sale.
Summertime is a great time to be someone’s hero. Have a barbecue during open house and make them feel so at home and welcome, that they simply must buy your house.
Check out the 2024 housing forecast post for more factors that may affect how high home prices will rise this summer.