2022 Home Seller’s GUIDE - everything you need to know

Prices are at an all time high in 2022, but are they going to stay that way? And if you sold now, what should you expect? All that and more in this video.

Hello everyone, my name is Cameron Stephens, the entertainment industry’s real estate agent and the owner of Stephens Real Estate, a real estate experience tailored to the creative client.

Today I want to talk about what the 2022 market holds for sellers because I think everyone has one major question on their minds: with interest rates rising significantly and quickly, what is going to happen to prices?

Well have to start with this: the landscape of selling a home has changed drastically. And sellers are going to have to shift their mindset from as recently as a few months ago if they want to get top dollar for their homes.

As we know, the Fed announced that they would be raising interest rates throughout 2022. Since mortgage rates are directly tied to interest rates, that meant mortgage rates would rise too. And they did. Now, these rates are still quite low in the context of history, but they are definitely affecting purchasing power for buyers.

All other things equal, what tends to happen to prices when interest rates rise? Well, they fall. It makes sense, people can afford less, their purchasing power is decreased with rising interest rates, so prices fall in accordance. 

Essentially what is happening is that only the most financially fit buyers are the ones able to stay in the market. The rise in prices combined with the rise in interest rates has absolutely priced certain buyers out of certain price ranges, and in some cases, priced them out of the market completely. 

The good news is that the ones that are in the market still are the ones that know they are ready to purchase a house, and have gotten their finances in order to do so.

The bad news is that there are simply fewer of them, and they are absolutely being pickier about where they spend their money.

By the way, if you happen to like videos like these, hit subscribe, follow, etc, whatever platform you’re on, that way you can stay up on all sorts of great information related to Los Angeles real estate. 

So sellers, the days of getting 20 offers on your home are gone. In fact, I’m seeing more inventory slowly come onto the market this year, which means the buyers that are left have more to choose from. 

This means that you now have to compete again, and even though I would still consider this a seller’s market, you will absolutely need to stand out from the crowd, especially if you don’t want to sit on the market for an extended period of time.

But that doesn’t mean you can’t get the prices you were getting last year, you just have to work harder to do so. Here are some of my tips and strategies for separating your home and getting top dollar.

First, choose an agent that can generate exposure. It used to be that if your agent got you 8 offers instead of 10 offers, who cares, that’s probably still plenty to push the price up. 

Now the difference between 1 and 2 offers is crucial, and even the difference between 2 and 3 offers is paramount. For example, I have a proprietary mail merge program that gets over 80% open rate from agents with active buyers in the area combined with targeted social media marketing. Make sure you know exactly what your agent is doing for you.

Second, consider some form of staging. Even if you aren’t doing full staging, I’ve used virtual staging and partial staging with fantastic success. Check out my entire video on staging for more information. 

But no matter what, the basics should be there: removing all the blinds to let in light, decluttering and depersonalizing, and a good deep clean inside and a fresh round of gardening outside.

Third, fix the things you need to fix! I always advise my seller clients on what fixes will make them a profit by updating, what things they will get a return on their investment, and also, what things will be major detractors to potential buyers. 

Don’t have the cash for renovations? Don’t worry! I have a program that allows you to renovate now and only pay when you sell with no fees, interest, or hidden costs. That’s basically the ability to front you money to make your home sell faster and profit the difference. Talk about making your home stand out from the competition!

Fourth, make sure the home is available to be seen. This might seem like a no brainer, but if you aren’t flexible with making the home available for showings, potential buyers will pass right over you for a house they can see. 

That definitely means vacating the home on weekends for open houses, even better if you can be out with a few hours notice for private showings, and of course, the best option is to vacate the house entirely so it can be seen any time a buyer is available without issue.

Fifth, consider the financial fitness of potential buyers. Right now, appraisals are coming back low more often than last year, coinciding with the slowdown of price increases. 

Negotiating a removal of the appraisal contingency, or at least an appraisal gap protection ensures that you still get the most amount of money possible in the event of a low appraisal. And consider a cross qualification so that you can scrutinize the finances of the buyer you ultimately go with. 

Remember, you as the seller have all the power until you sign that contract, then the power immediately shifts to the buyer due to the way California purchase contracts are written.

Sixth, are you selling this house to buy a new one? Consider bridge financing so that you can use the equity in your current home to go house shopping with confidence, make offers that are not contingent upon the sale of your current home, and close on your new home without the stress of moving into a short term rental. 

Then you can sell your old house without the hassle of being in it while doing so and focus all your time and energy on your new home.

And finally, be prepared to move quickly. Good buyers are prepared and they want to move in now. 

Can you be out in 15 days if you have a cash buyer that wants to close quickly? Hire an estate salesman or junk hauler if need be to make sure a buyer who pays top dollar and wants to close early can make that happen. 

Negotiate hard but if you have a good buyer on the hook, make sure they don’t get spooked. This is a delicate dance, so make sure you know all of your options and talk about the possible branching scenarios with your agent at each step of the process to know the best way to proceed and close with that top dollar amount.

Ok there you have it! Thank you for watching, I hope you learned something about selling homes in 2022. 

The biggest takeaway is this: the heat of the market is over. It’s only a seller’s market if you MAKE it a seller’s market. You now have to go above and beyond to capture that top dollar, so make sure you are mentally prepared and don’t just throw your home up on the market with crappy photos and a big confident ego thinking this is 2021. 

It’s a new year, new ball game.

At Stephens Real Estate we specialize in working with creative professionals, entrepreneurs, and especially people in the entertainment industry because I spent 7 years of my life working in animation and visual effects. That is why I designed Stephens Real Estate to be tailored to the creative client.  

I also designed a few value adding programs for both buyers and sellers that no one else is offering. For buyers, we put together a full marketing plan that paints you as the right buyer for your dream home. 

We can help recommend local lenders that will fit your financing situation, even if you’re freelance. And don’t worry about the inspections, we’ve got you covered. They’re free, all of them, no questions asked.

And If you’re looking to sell your home, we offer the ability to REMODEL NOW, and PAY WHEN YOU SELL with Zero fees, no interest, no upfront costs. 

Plus, we pay for all of the aspects of digital marketing from photography, drone footage, videography, 3D walkthrough and virtual open houses, social media campaign, custom website, targeted emails and more.

So, if you like my energy and personality, and think my expertise and the programs I offer would benefit you, please don’t hesitate to reach out. Additionally if you know someone that would benefit from connecting with me, I’d absolutely love an introduction.

Thanks again for watching, and at the end of this video there will be a QR code you can scan to be taken directly to my website, or a link somewhere down there where you can click to learn more.