Ask the Expert

My City Magazine: Is it a buyer’s market, a seller’s market, or somewhere in between?

Ed Constable: The market is definitely shifting. We’re seeing prices come down and lots of price reductions. At the same time, homes that come to market at a fair price and in great condition are still getting multiple offers. The ones that are more of a handyman special and need a little love are the ones sitting.

My City Magazine: How are interest rates affecting buyers right now?

Ed Constable: Heavily. Rates have gone up more than 1 percent in the last month and about 2 percent since the beginning of the year, and that significantly reduces how much home a buyer can afford. We’re also in the seasonal slowdown, when prices typically dip. That helps some, but it doesn’t make up for the jump in rates.

My City Magazine: What’s the biggest mistake sellers are making?

Ed Constable: Overpricing. If your neighbor sold for $350,000 in July, you shouldn’t be listing your home at $350,000 or $360,000 in November. Prices dip every winter. Fewer people want to move during that season, and a lot of the buyers who move our market are down in Florida doing the snowbird thing.

My City Magazine: How much less forgiving is the market for an overpriced home?

Ed Constable: A lot. Three months ago, if you overpriced a house, you’d still get a few showings. Now you’re lucky to get one.

My City Magazine: What do the numbers say about pricing?

Ed Constable: This is the part I find really interesting. Look at what homes actually sell for compared to the list price at the time they went pending or sold. Nearly all of them sell for between 99% and 101% of that price. That’s not the original list price, though. It’s the price the house was listed at when it finally sold. So pricing really matters. Buyers just don’t make offers on overpriced homes. They wait.

My City Magazine: How can a seller tell if their home is priced right?

Ed Constable: Watch your showings. If you’re priced close, you should be getting three to five showings a week. It typically takes somewhere between 12 and 15 showings before a house sells. If you’re not seeing that kind of traffic, the price is usually the reason.