Real estate guru Dan Gutfreund shares his top tips for home buyers and sellers going into 2023
By Korie Wilkins
Now that summer has ended, we talk about the fall and winter real estate tips with local guru Dan Gutfreund, who owns the Dan Gutfreund Realty Group of Signature Sotheby’s International Realty in Birmingham.
What can buyers and sellers expect as we head into 2023?
Talking openly about the market: What I see currently, is we are following a similar pattern that we did in 2019, prior to the pandemic. I consider it a normalized market.
In Michigan, our busy seasons in real estate are spring and fall. Throughout the summer, most Michiganders go up north to cottages and enjoy our lakes – they aren’t thinking about buying and selling homes. So, the market softens. And we have seen that exact pattern this past summer, especially the last few weeks of August. We know now that in 2021-22 people were stuck at home and began to want something different, like larger homes, homes with office spaces. They were really reevaluating their lives and what they wanted and we saw that spike in demand for homes in the later part of 2020 and all of 2021.
The current market now, however, is normalizing. Listings are down about 15% over last year. Homes are sitting on the market longer and prices are about 97% where as last year they were 99%. We are seeing more of a change in what the asking price is versus what the selling price is – meaning there is a bit of a downward trend.
There are a few reasons for this, but the biggest one is probably mortgage rates. The rates are fluctuating back to a normal percentage of 5-6% and that’s what people should be expecting for the foreseeable future.
This fall, we anticipate an uptick in the market and more stability. What we are currently in is a normal market. There is no rapid decline forecasted.
For the past few years, buyers have been looking for home entertainment options, home offices and entertaining spaces. Is that still on trend? Or are buyer for something new?
Buyers today are savvier than ever with the access to technology. What they are looking for is a smart home. They want to run their home with a smart phone: Integrated sound systems for music and television, accessibility to your heating and cooling systems, home entertainment and security systems. This is all very important to younger buyers.
Home office space remains an important and sought-after feature. There are still a lot of people working at home, so they need a good office space.
A great home-office space is still desirable for buyers in this market.
A great home-office space is still desirable for buyers in this market.
And this never changes, a good kitchen is the heart of the home. It’s where people gather for meals and family time. Buyers want upgraded appliances – I call it a cook’s kitchen.
For the most part, people also still want an outdoor entertainment space for the warmer months. A pool, a patio, a fire-pit, a seating area – even something covered outdoors.
Buyers still want outdoor spaces like pools, fire pits and covered patios or porches to enjoy.
Buyers still want outdoor spaces like pools, fire pits and covered patios or porches to enjoy.
For sellers, as the market cools a bit, how can they best market their homes to stand out and sell quickly? What are your top tips?
Most sellers don’t want to invest a lot of money once they decide to sell; they are exiting the home for a variety of reasons. A fresh coat of paint or replacing carpet or worn flooring is important. Curb appeal is very important. Make sure the exterior landscape is tidy and properly trimmed and maintained.
And make sure there are no strong odors in the home – especially in basements, get rid of any musty smell.
Get some flowers, open your blinds and make it bright and inviting. It should feel like it like it is ready for buyers – make it feel like a modern home. People want to imagine themselves living in the home, enjoying the space.
Is staging a home still a thing? Is it worth the investment?
I always recommend staging a home, especially if the home is vacant. It is important to help the home feel warm with furniture vignettes so potential buyers can understand how the home lives. Staging always creates a higher perception of value.
Before selling your home, put on a fresh coat of paint, open your blinds to bring in light and put out flowers.
Before selling your home, put on a fresh coat of paint, open your blinds to bring in light and put out flowers.
And one last question for those looking to buy in 2023: What’s the best way to get ready?
Get prequalified now. Walking into a home with a prequalified mortgage, you’ll be able to get a home faster. It’s important to get those ducks in a row before you place an offer. Hire a professional who can help you learn about the area, schools, features of home and accessibility to amenities like sports, recreation and more.
Also, when hiring a real estate professional, do your due diligence. Your real estate professional should be able to tell you about the fitness of home by looking at the surface of roof, age of appliances or hot water heater and give you an estimate for future expenses once you own the home. When it comes to real estate professionals, prior transactions speak for themselves.
Happy house hunting! It can be fun or it can be stressful, but if you arm yourself with information, you can make your decision a great decision.
Dan Gutfreund Realty Group, Signature Sotheby’s, 415 S Old Woodward Ave. isellmichigan.com 248.497.4646
Read more about Fall Real Estate Trends in Metro Detroit and the team of experts behind Dan Gutfreund Realty Group, one of Michigan’s top selling agents.
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