Even in a hot seller’s market, a new report from Clever released this week found that 90% of home sellers in 2021 and 2022 compromised on their priorities, with 1 in 4 Americans (25%) saying they should have made more repairs before listing their home.
According to the Clever home-selling survey of 1,000 Americans, home sellers realized a profit of roughly $94,000 in 2021—up 45% from the $65,000 they collected in 2020. As a result, 1 in 5 Americans (20%) who sold their home in 2021 and 2022 did so because they thought they could make a profit. Additionally, nearly 1 in 3 Americans (30%) listed their home because it was a good time to sell, and more than three-fourths of sellers (78%) were happy with the timing of their sale—especially because two-thirds (64%) think the real estate market is now worse for sellers than when they sold.
Key highlights:
- Nearly one-third of respondents (31%) believe it’s no longer a good time to sell and an even worse time to buy (36%).
- About 40% of respondents expected more competition among buyers than they actually experienced, with 2022 sellers 16% more likely than 2021 sellers to be disappointed in the level of competition.
- The No. 1 priority among home sellers was selling quickly (42%), but more than 1 in 6 (17%) settled for a lengthier sale.
- Market changes impacted the selling experience of 93% of sellers, particularly the timing of their sale.
- Approximately 39% of Americans fast-tracked their plans to sell ahead of new interest rate hikes. Another third (30%) delayed their plans to sell, especially while high prices and interest rates make buying a new home even more unaffordable.
- About 80% of sellers sold their homes for at least asking price, including 1 in 3 (35%) who received more than asking price. For homes that sold above asking price, the median amount paid over the list price was $60,000 for a median sale price of $530,000.
- About 1 in 5 sellers (21%) sold below asking price, with 2022 sellers 23% more likely than 2021 sellers to sell for less.
- Most sellers (94%) received more than one offer, with more than half (54%) receiving five or more offers.
- More than half of sellers (54%) sold their home within one month, with nearly 1 in 5 (19%) reporting it was on the market for just one to two weeks.
Major takeaway:
According to the report, although the market isn’t as competitive now as it was in 2021, it still favors sellers, and a seller’s market has many advantages for those listing their homes.
“About 1 in 4 sellers reported that buyers made concessions (26%), waived an inspection (26%) and did not ask for repairs (24%),” said the author of the report. “But the greatest advantage, according to respondents, was that homes sold quickly. Among those who found home selling easier than expected, a majority said it was because they sold quickly (52%) and for a good price (51%). Another third (33%) said the sale didn’t require much effort or prep work.”
Concluded the author, “But as fewer Americans look to buy as interest rates rise, the market pendulum has shifted somewhat back toward buyers. Consequently, 2022 sellers were 43% less likely than 2021 sellers to say home selling was easier than expected. Sellers who had to concede to buyers’ demands found home selling more difficult. The most common difficulties included making repairs (42%), making concessions (39%) and lowering the asking price (37%) — with 2022 sellers 21% more likely to reduce their price than 2021 sellers.”
For the full report, click here.
