What the 2023 Housing Market Means for Seniors Selling Their Homes

What the 2023 Housing Market Means for Seniors Selling Their Homes

One of the biggest decisions we make in life is whether to buy or sell a home. Selling a home in our senior years is more challenging on many levels. When you add in our current economic uncertainty, which many of us are feeling, you may be wondering if now is the right time to sell your home. 

In this article, we’ll review how rising mortgage rates affect the housing market, how market predictions can impact seniors selling their homes in 2023, and how you can position your home to attract offers.

Mortgage Rates and the Housing Market

There’s an inverse relationship between mortgage rates and home prices. As a general rule, when interest rates are low, home prices are higher. When interest rates go up, home prices tend not to rise and may even go down. The reason is that home buyers usually have a budget they need to stay within. If more of their money will be going to paying higher interest rates, they will be able to spend less on a house. 

Rising interest rates have a big impact on the housing market. Not only are home buyers looking to spend less on a home, but there are also less people applying and qualifying for home loans. Fewer buyers in the market—otherwise known as a buyers’ market—means people selling their homes need to put more effort into attracting sellers.

As Bankrate states in their 2023 Winter Housing Market Predictions “Rising mortgage rates equate to less interest from home buyers and greater pressure on sellers to reduce their prices.”

What Does a Slower Housing Market Mean for Seniors?

During a buyer’s market, sellers have to put more effort into selling their homes. In 2023, that will mean going back to some of the basics that have been abandoned in the recent past. 

Be prepared for some of these situations to arise if you’re selling during a buyer’s market. 

• Your house sitting on the market longer.
• Interested buyers not have received loan approval yet.
• Buyers sometimes need to get reapproved if their home-buying process is moving slowly.
• Buyers getting cold feet and calling off a contract. 
• Fewer buyers engaging in bidding wars.
• Buyers expecting home inspections as part of a contact contingency.

Do I Need to Host an Open House?

While most buyers want to see a home before they put an offer in, an open house may not be the only way to attract them. Open-house visitors may not be serious buyers. They can be casual browsers, curious neighbors, and even other real estate agents looking for clients. 

Some reports suggest that open houses aren’t necessary for selling a home. Online photos and virtual tours were gaining hold even before the pandemic. 

During the pandemic, open houses weren’t even permitted. Instead, real estate agents used various technologies to hold virtual tours. Now that most areas allow open houses again, many sellers and agents are still sticking with virtual tools.

Don’t forget--home buyers in 2023 grew up with technology. Taking care of business online is nothing new to them.

Using Technology to Sell Your Home

Your home’s online presence is going to give potential buyers their first impression. It’s what’s going to prompt a potential buyer to reach out. 

Your listing agent can help you put your house in the best light online. It will involve deep cleaning, decluttering, staging, and taking lots of photos. Some of this you can do yourself, but your agent can make recommendations for outsourcing any of these tasks. 

There are new digital tools emerging every day in real estate. Your agent will have their own preferences, but photos and 360-degree video are standard at this point. Other tools are 3-D virtual tours or computerized staging.

Home Inspections Are Back 

Home inspections protect potential home buyers from inheriting unforeseen problems with their home purchase. In a hot housing market, buyers sometimes forgo home inspections as a way to make their offer more attractive to the seller. This makes things easier for the seller but isn’t a smart move for buyers. Issues such as plumbing, electrical work, or mold can cost tens of thousands of dollars or more. 

In a buyers’ market, potential buyers are going to insist on home inspections. Be prepared and take care of any known issues before the inspection. Failed home inspections can cause buyers to walk away from the sale.

Set the Right Price

One of the worst things you can do when selling your home is to price it incorrectly. You obviously don’t want to sell it too low, but setting the price to high can backfire.

There are a lot of factors in play when setting your asking price. One of them is the recent selling prices of homes similar to yours in the same geographical area. This is a remarkably consistent predictor of what buyers will be willing to offer for your home. 

Don’t fall into the trap of comparing current selling prices to those from a year, two, or three ago. In real estate, what’s true during one set of circumstances may not be true in another. If you price your home too high, you may not get people to even look at your home, never mind buying it. 

Our advice? Find a qualified real estate agent. They know about the housing market in your area and can help you set the right price.

When to Put Your House on the Market

A lot of people have strong opinions about the best time to put a home on the market. Rocket Homes says on their website, “Homes that are listed at the end of spring and beginning of summer not only tend to sell faster but also for higher prices.” They also point out that that generalization isn’t true for everyone. It depends greatly on the weather in your particular area. If you live in a resort area, or in a warmer climate, that isn’t the best time to sell.

It comes down to your own personal circumstances, your health, and your finances. You can take the weather and the trends into account, but ultimately the question is: When are you ready to sell? 

The Importance of Curb Appeal

Curb appeal refers to the way your home looks from the outside. Potential buyers are looking for signs of care and upkeep. Things like exterior paint that’s in good shape and a well-tended garden communicate that someone’s been keeping an eye on things.

Even online, the exterior of your house is the first thing people see. We shouldn’t judge people by their outside appearance, but it’s okay to do it when shopping for a home. Often the exterior of a home is a reflection of the interior. Most people will assume that’s the case. RE/MAX states on their website, “According to a RE/MAX Twitter Poll, a majority of responders – 46.2% – agree that a shabby exterior is the biggest turn-off when touring homes.”

Even a small bit of sprucing up can make your home look inviting. Add some potted plants near the front porch or line the walkway. Make sure garden beds are raked out. Put a comfortable outdoor chair on the porch with a new seat cushion. Buy a new welcome mat. These small touches are pleasing to the eye and say, “Come on in. You’ll like it here.”

Does getting your home ready to sell seem overwhelming? We can help! 

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