If you’re thinking about selling a home in Portsmouth, New Hampshire, or elsewhere on the New Hampshire or southern Maine Seacoast, today’s real estate market requires a little more strategy than it did when buyers were competing for virtually every property that hit the market.
Homes are still selling, and well-positioned properties can still attract strong interest. But higher mortgage rates have changed how many buyers make their decisions.
Today, the monthly payment matters more than ever.
That means sellers need to think beyond simply listing a house and waiting for an offer. Pricing, presentation, competition, financing, and buyer incentives can all play a role in getting your home sold.
Buyers Are Shopping the Monthly Payment
When mortgage rates rise, purchasing power falls.
A buyer may love a particular house, but ultimately the numbers have to work. Even a relatively small difference in the mortgage rate or purchase price can make a noticeable difference in the monthly payment.
Homebuilders understand this very well, and they’re using it to compete for buyers.
According to Realtor.com data shown in the accompanying graphics, 18.8% of new-construction listings advertise some type of buyer incentive. The most common incentive is a reduced mortgage rate, advertised on 13.8% of new-home listings.
Other advertised incentives include flex cash, closing-cost assistance, cash at closing, upgrades, and appliances.
That tells existing-home sellers something important:
You aren’t competing only against other resale homes. In some markets, you’re also competing against builders who are actively trying to make their homes more affordable to buyers.
You Don’t Have To Be a Builder To Offer an Incentive
Builders may have more financial flexibility with incentives, but many of the same concepts apply when selling an existing home.
For example, depending on the buyer’s mortgage program and the terms of the transaction, a seller may be able to contribute toward closing costs or help fund a mortgage-rate buydown.
Would that be better than reducing the price?
Sometimes. Sometimes not.
Suppose you’re considering a $20,000 price reduction. Depending on the circumstances, using some or all of that money toward an allowable buyer concession or rate buydown could potentially have a greater effect on that buyer’s immediate affordability than simply reducing the sales price.
But every transaction is different. Loan type, down payment, lender requirements, appraisal, and allowable seller concessions all matter.
That’s why the question shouldn’t automatically be:
“How much do I need to reduce my price?”
A better question may be:
“What is preventing today’s buyer from purchasing my home, and what’s the most effective way to address it?”
Price Still Matters — A Lot
Incentives aren’t a substitute for proper pricing.
One of the biggest mistakes sellers can make is pricing their home based on what a neighbor received two or three years ago, what they need to net from the sale, or what an online home value estimate says the property is worth.
The market doesn’t know what you need from the sale.
Buyers compare your home with everything else they can purchase right now.
Here on the New Hampshire Seacoast, that comparison can be particularly nuanced. A buyer looking in Portsmouth might also consider Greenland, Rye, New Castle, Dover, Exeter, Hampton, or even Southern Maine.
The property that offers the best combination of location, condition, amenities, lifestyle, and monthly cost often gets the buyer’s attention.
Pricing your home correctly from the beginning helps ensure you’re part of that conversation.
Listen to What the Market Is Telling You
Once your home is listed, the market starts providing you with information almost immediately.
If buyers are seeing the property online but aren’t scheduling showings, something may be wrong with the price, photography, presentation or positioning.
If you’re getting plenty of showings but no offers, that’s another signal.
If several buyers independently make the same comment about price, condition, layout or a particular feature, that’s worth paying attention to.
One buyer’s opinion isn’t necessarily meaningful. A pattern of similar reactions is.
Successful sellers don’t react to every comment. They look for patterns and adjust when the evidence supports it.
Make Your Existing Home’s Advantages Obvious
New construction has obvious appeal. Everything is new, maintenance may initially be lower, and builders may offer attractive financing incentives.
But existing homes can have significant advantages that new construction can’t easily duplicate.
A Portsmouth home might offer a walkable location near Market Square. A Rye property may be minutes from the ocean. An established neighborhood may offer mature landscaping, larger lots, distinctive architecture, sidewalks, or proximity to restaurants, shops, schools, and recreation.
And unlike a house that won’t be completed for several months, an existing home may be available now.
The key is to identify why someone should choose your home over the alternatives and to make that story clear in your marketing.
Condition Matters More When Buyers Are Stretched
When buyers are already concerned about their mortgage payments, many are less willing to spend an additional $30,000, $50,000, or more after closing.
That doesn’t necessarily mean you should completely renovate your house before selling.
Often, smaller improvements provide a much better return.
Fresh paint, deferred maintenance, landscaping, professional cleaning, decluttering, improved lighting and relatively inexpensive cosmetic updates can dramatically change a buyer’s first impression.
The goal isn’t to make an older home look brand-new.
It’s to eliminate unnecessary objections that could cause a buyer to choose another property.
Professional Presentation Is No Longer Optional
Buyers frequently decide which houses they want to see while sitting at home looking at a phone, tablet, or computer.
That means your home’s first showing often happens online.
Professional photography, compelling property descriptions, accurate information, and thoughtful digital marketing can determine whether a buyer schedules an appointment or scrolls past your listing.
A house that’s priced correctly but poorly presented can still underperform.
You want buyers to stop scrolling and think:
“I want to see this house.” Ann Cummings and Jim Lee represented the buyers in their purchase of this beautiful Portsmouth home.
Don’t Automatically Give Money Away
There’s an important distinction between being flexible and simply giving concessions away.
You don’t necessarily need to reduce your price, pay closing costs, or offer a mortgage-rate buydown just because other sellers or builders are doing it.
First determine what the competition actually looks like.
If your property is attracting multiple interested buyers, offering a large concession unnecessarily could reduce your proceeds without accomplishing anything.
But if similar homes are on the market and nearby builders are offering attractive financing packages, ignoring those incentives could make your home less competitive.
The strategy should fit your property and your market, rather than following a one-size-fits-all formula.
The First Few Weeks Matter
When a new listing comes on the market, it usually receives its greatest exposure to active buyers early in the listing period.
Those buyers have already seen much of the existing inventory. Your home is something new.
That’s an opportunity you don’t want to waste with an unrealistic asking price, poor photographs or unfinished preparation.
You can always reduce the price later, but you can’t recreate the excitement of being a brand-new listing.
That’s why we believe the best selling strategy starts before the property goes on the market. Get your free copy of our 52-page eBook titled “450 Ideas To Help Your Home Sell FASTER!“
What Does It Take To Sell a Home Today?
For most sellers, it comes down to five things:
- Price it for today’s market, not yesterday’s.
- Prepare it carefully so buyers see value rather than projects.
- Market it professionally so it stands out online and in person.
- Understand your competition, including new construction when applicable.
- Remain flexible and respond to what buyers and the market are telling you.
The objective isn’t necessarily to be the cheapest house.
It’s to give buyers compelling reasons to choose your house.
Thinking of selling in the Portsmouth or New Hampshire Seacoast market? Let’s talk
We have the skills, knowledge, and 40+ years of experience helping sellers just like you sell their house quickly and for the best price.
Ann Cummings and Jim Lee, REALTORS, Certified Residential Specialists (CRS), Accredited Buyer Representatives (ABR), Graduate, REALTOR Institute (GRI), Endorsed by the REALTORS® Commitment to Excellence (C2EX®).
Frequently Asked Questions About Selling a Home in Today’s Market
1. Is this still a good time to sell a home on the New Hampshire Seacoast?
It can be. The answer depends heavily on the property, town, price range and competing inventory. Portsmouth and individual Seacoast communities can behave very differently, so broad national housing statistics don’t always tell you what is happening in your particular neighborhood.
2. Should I reduce my price if my house isn’t selling?
Not automatically. First, look at online activity, showing volume, buyer feedback, competing listings, and recent sales. If buyers consistently indicate that the home doesn’t offer enough value at its current price, a price adjustment may be warranted.
3. Can an existing-home seller offer a mortgage-rate buydown?
Potentially, yes. Seller contributions can sometimes be used toward an allowable rate buydown, subject to the buyer’s mortgage program, lender requirements, and transaction structure. The buyer’s lender should determine exactly what is permitted.
4. Is a rate buydown better than reducing my asking price?
It depends. A price reduction lowers the amount financed, while a rate buydown may have a larger impact on the buyer’s near-term monthly payment. We can compare the alternatives before deciding which approach makes the most sense.
5. Do I need to renovate my house before selling?
Usually not extensively. The better question is which improvements will remove buyer objections or improve marketability without costing more than they’re likely to return. Cleaning, painting, repairs, decluttering and curb appeal can sometimes accomplish more than an expensive renovation.
6. How important are professional real estate photographs?
Extremely important. Most buyers encounter your home online before they ever walk through the door. Good photography helps generate interest and showings; poor photography can prevent an otherwise good property from getting the attention it deserves.
7. Am I really competing against new construction?
It depends on your location and price range. If buyers considering your home are also looking at newly built properties, then yes. Builder financing incentives, warranties and upgrades become part of the buyer’s comparison, even though your home may offer advantages the new development can’t provide.
8. Should I offer closing-cost assistance when I list my home?
Not necessarily. In many cases, it’s better to determine whether buyers actually need an incentive before offering one. The appropriate concession can also depend on the offer price, financing, and other terms.
9. How do I know what my Portsmouth or Seacoast home is really worth?
A professional Comparative Market Analysis should examine recent comparable sales, current competition, pending properties, location, condition, improvements, lot characteristics, and current buyer demand. Automated estimates can be useful reference points, but they don’t walk through your home or understand all of the nuances of Seacoast neighborhoods.
10. What’s the most important thing I can do before putting my house on the market?
Develop the strategy before you list. Determine the likely market value, identify competing properties, prepare the home, decide how it will be marketed and consider in advance how you’ll respond if buyers aren’t reacting as expected.
Thinking About Selling in Portsmouth or the New Hampshire Seacoast?
Today’s market isn’t necessarily about giving buyers more. It’s about understanding what buyers value and positioning your home accordingly.
That’s particularly important in a market as varied as the New Hampshire Seacoast and Southern Maine, where location, neighborhood, property condition, and lifestyle can make substantial differences in value from one property to another.
Ann Cummings & Jim Lee, REALTORS®
RE/MAX Shoreline
Portsmouth, New Hampshire
603-436-1221
Whether you’re thinking about selling now or simply wondering what your home might be worth, we’re happy to provide a professional market analysis and talk through your options — with no obligation. Let’s talk.