Navigating Philadelphia’s Real Estate Market as a Seller

Navigating Philadelphia’s Real Estate Market as a Seller

  • Douglas Pearson
  • 03/3/22

With many sought-after locations, Philadelphia properties are quickly rising in price. If you own real estate in an upscale neighborhood and you’re looking to make a great return on investment, it’s crucial to understand the current state of the market, especially as it pertains to location.

For example, the neighborhood of Society Hill already has a reputation as one of the nicest neighborhoods in the city; that desirability will make your home more valuable. The same goes for homes in the Art Museum Area. Regardless of external factors, the location will boost the value of your property. However, you still want to sell your real estate at the right time. Various factors will determine how much people are willing to pay for homes in Society Hill and other neighborhoods, so take the time to understand each aspect before deciding when to list your home. Keep reading to learn a few tips and tricks on navigating Philadelphia’s real estate market as a seller.

Sell when your neighborhood is in-demand

Before listing your property, you should first understand how in-demand your area is so you know if you’re in a seller’s market or a buyer’s market. The Philadelphia real estate market has largely been a seller’s market for the past few years, especially for homes priced below $1,000,000. Demand among buyers outpaced the supply of homes for sale, which drives up the prices as buyers try to outbid each other. On the other side is a buyer’s market, where there are more homes for sale than there are prospective buyers. The buyers are in a stronger position to negotiate because there are more options; this will drive prices down.

Homes for sale in Society Hill are currently experiencing a slight buyer’s market. The median price of a home is $553,750, lower than the current median home listing price. This doesn’t mean you shouldn’t list your home for sale; it simply means you need to make sure it is looking its best for the market and is priced competitively compared to similar houses. Test the waters and see how the market responds. If you’re interested in selling or getting specific information on your area’s real estate market, we recommend getting in touch with Douglas and our team to learn more about how we advise sellers to price their homes in this kind of market.

Keep in mind that, as with all neighborhoods, the price ranges in Philadelphia can vary quite significantly, and average and median home prices are not always the best indicator of your home’s market value. Your gains may depend on how long ago you bought your property and how much equity you have in it. Again, you can test the market and see if you receive offers that motivate you to proceed and sell. If you don’t get the return you hoped, you can always take your house off the market and wait for a seller’s market.

Sell when interest rates are low

Whether you’re selling a luxury condo in Center City or a waterfront home in New Hope, you may wonder why you should care about the current mortgage interest rates. It’s a matter of looking at buying power. People can afford “more house” when rates are lower and are more eager to lock in on a home purchase.

Mortgage interest rates are relatively low right now, but this likely won’t last for long as it is expected that the Federal Reserve will raise interest rates this year, and mortgage interest rates are likely to be among them. If a buyer knows that they’ll pay less in interest, they could be willing to offer more for the real estate. Buyers also know that the low mortgage interest rates won’t last forever, and that will give them a sense of urgency to buy sooner rather than later.

Evaluate the Philadelphia market

If you find that your neighborhood is favoring buyers, it’s worth looking at other neighborhoods in the city to understand whether activity there is impacting your ZIP code. According to Philly Voice, there are some new developments on the way in other upscale Philadelphia neighborhoods. For example, “Toll Brothers is building a new 18-story mixed-use property just minutes away from City Hall… and on the waterfront of the Delaware River, just north of Fishtown, a large townhome development called Northbank is under construction.”

Soon there will be more competition for those looking to sell in Philadelphia. Buyers should be aware they’ll have more options shortly. You may want to consider selling soon, so you don’t have to compete with these new developments.
 

Know how to increase the value of your property

If you’re looking to sell your home in Philadelphia, there are some quick fixes you can make to increase the value of your real estate. A massive remodeling project might be off the table if you own a high-rise property, but you can increase the value of your home with simple things like getting new furniture or redecorating.
 
Even if you don’t have the option to change the landscaping and plant new trees, you could change the interior design of your Philadelphia luxury real estate. The property is valuable, so have an interior that reflects that. Modern and transitional interiors are popular now with buyers of all ages, and a property that feels fresh and “of the moment” will seem more move-in-ready and more valuable. Check out ideas on houzz.com or consult Douglas for guidance on staging. Regardless of what the interior design of your real estate is, it might be worth it to at least put on a new coat of paint and make sure the feng shui of the furniture is correct.

How to get started selling your Philadelphia real estate

If you’re ready to begin selling your home in Philadelphia, we welcome you to contact our experienced team for trusted advice and expertise in the area. We guide our clients through every step of the process to make the experience of selling your home both seamless and rewarding.
 
Interested in finding your new home in Philadelphia? We can help with that, too. Explore our Featured Listings.



Work With Douglas

With decades of sales and marketing successes behind him, Doug Pearson is a leading Realtor in the greater Philadelphia area and a top salesperson in Kurfiss Sotheby’s International Realty. He has extensive experience selling new construction and land along with estate homes, city condominiums, and investment properties.