Written by Kelli Osterman, REALTOR® with The Osterman Team at The Agency | Degreed Interior Designer
What is hurting your home's value in Oklahoma City when interest rates are high? After 20 years as a licensed agent, and with a degree in interior design, my answer is three things: a home that is not move-in ready, a home that is not staged, and a home that is priced high on purpose with the plan to lower it later. When rates are high, buyers have less room in their monthly budget, so they are far less forgiving of all three. The home that wins right now is clean, fresh-smelling, well presented, and priced where the market actually is on day one.
Kelli Osterman is a REALTOR® with The Osterman Team at The Agency in Oklahoma City, Edmond, and Arcadia, helping homeowners and buyers move forward with a clear plan and no surprises. Here is what I tell every seller in Oklahoma City, Edmond and Arcadia who asks me how to get the best result right now.
Why do high interest rates change what buyers will accept?
A higher rate means a higher monthly payment on the same loan amount. That payment is what most buyers shop by. When a lot of their budget is already going to the mortgage, they have less left over for repairs, paint, new floors, or a move-in surprise.
So they behave differently. They count every flaw as a cost. A scuffed wall that a buyer might have shrugged off when money felt easier now turns into "what else is wrong with this house?"
I am not saying buyers have disappeared. They are just choosing carefully, and they are choosing the homes that feel easy. That is the whole game right now: make your home the easy choice. Everything below comes from that one idea.
What happens when your home is not move-in ready?
This is the biggest one. A buyer walks in and, within about the first minute, decides whether this feels like a home they can move into or a project they have to take on. If it feels like a project, they start doing math in their head, and the math is rarely kind to the seller. Move-in ready does not mean remodeled. It means three simple things.
Is the house actually clean?
Not "cleaned for company" clean. Actually clean. Baseboards, window sills, inside the oven, the grout, the glass on the shower door, the dust on the ceiling fan. Dirt reads as neglect, and neglect makes buyers wonder about the parts they cannot see, like the roof, the plumbing and the HVAC.
Does the house smell like nothing at all?
Smell is the thing sellers are most blind to, because you stopped noticing it years ago. Buyers notice it the second they open the front door, and they cannot un-smell it. Do not cover it with a heavy candle or a plug-in. That often makes it worse, and some buyers are sensitive to strong scents. Find the source and remove it. Leave the house smelling fresh and neutral.
Are the small things fixed?
The dripping faucet, the loose handle, the cracked outlet cover, the burned-out bulb, the door that sticks, the chipped paint, the torn screen. None of these costs much. Together they tell a buyer that this house has not been looked after, and buyers are very good at adding up a list of small things into one big number when they sit down to make an offer.
Here is the part sellers are relieved to hear: you probably do not need to remodel. Paint, lighting, a deep clean and fixing what is visibly broken will take you most of the way. Before you spend a dollar on a big project, let's talk about it. I would rather save you money than watch you spend it on something buyers will not pay for. If you are wondering about paint colors in particular, I wrote about that in Should every home be painted white and neutral before selling?
Why does an unstaged home cost you money?
Most buyers cannot picture their life in a house that is full of someone else's stuff, or one that is empty and echoing. Here is what an unstaged home looks like to them:
- Too much furniture, so the rooms feel small.
- Personal photos and collections everywhere, so the house feels like it belongs to someone else.
- A bedroom used as a storage room, an office, and a workout room all at once, so no one can tell what the room is for.
- Dark corners, closed curtains and tired lighting.
Staging fixes this. It does not have to mean renting a truckload of furniture. For many homes it means:
- Removing about a third of what is in each room, especially from closets and counters.
- Arranging the furniture that remains so each room has one clear purpose and you can walk through it easily.
- Opening every curtain, turning on every light, and swapping out dim bulbs.
- Making the entry, the kitchen and the main bedroom feel calm and bright, because that is where buyers decide.
I have a degree in interior design, so I will say this plainly: staging is not decorating to your taste or mine. It is editing a house so the largest number of buyers can see themselves living there. When buyers can picture it, they are more willing to pay for it. When they cannot, they hesitate, and hesitation in a slower market means more days on the market.
Why is pricing high and lowering it later a bad strategy?
This is the one that costs sellers the most, and it is the one I feel most strongly about.
The first couple of weeks are your best weeks. A new listing gets the most attention in the beginning, from buyers who have been waiting, and from agents with clients ready to go. If your price is above where comparable homes have actually sold, those buyers look, compare, and move on. Once you drop the price, you are no longer new. You are the house that has been sitting.
A price drop tells a story. Buyers see the history. A reduction can make them think the seller is desperate, or that something is wrong with the house, or that there is more room to push down further.
You may end up net lower than if you had priced right. A home priced well from the start tends to create competition for your home. A home that gets reduced tends to create negotiation against it. I am not promising any specific result, because every home is different. But in my 20 years, the pattern is consistent enough that I will not recommend overpricing to a client.
So what is the better plan? Price it right the first time. That means looking at what comparable homes have actually closed for, not what they were listed for. It means adjusting for condition, updates, lot and location honestly.
I use a Plan A, B and C approach with sellers: an aggressive price, a moderate price, and a below-market price, with a clear explanation of what each one means for your timeline and your net. You pick the plan, with eyes open.
What does this look like in a real situation?
Recently I watched a seller drop their price by almost $50,000. They were not my clients, and the point is not the people. The point is the math. About a fifth of that amount, roughly $10,000, would have paid for a deep cleaning, a handyman to fix everything that was not in tip-top shape, and proper staging.
Now picture a seller who takes the other road. Before listing, they walk the house with fresh eyes, clean it top to bottom, fix the sticking doors and the dripping faucet, pull a third of the furniture out, and open every curtain. Then they choose a price based on what similar homes actually closed for. The home shows up as new, priced where buyers expect, and it feels easy. That seller is not guaranteed any particular number, but they have given the home its best first two weeks, and those are the weeks that matter most.
I know which I would rather do: spend a fraction up front so the home shows its best from day one, or give up a far larger amount later after it has been sitting.
What should you do before you list, step by step?
Here's what I would do, in this order:
- Walk through your home like a stranger. Start outside, come in the front door, and write down everything you notice: smells, clutter, scuffs, dim rooms, things that do not work.
- Deep clean everything. Hire help if you can. It is some of the best money you will spend.
- Fix the small things and the known problems. If you know about it, an inspector will find it. Deal with it on your terms.
- Edit and stage. Remove clutter, rearrange, brighten, and make each room's purpose obvious.
- Get the price right. Use sold comparables, not hope.
- Have great photos taken after all of that, not before.
Do these in order and you will give your home the best chance at a smooth sale, even when buyers are cautious.
What are the most common mistakes sellers make when rates are high?
- Assuming buyers will see past the mess. They will not. They will put a number on it, and their number is usually bigger than yours.
- Starting a big remodel without a plan. Spending heavily on a project buyers do not value is money you may not get back.
- Pricing from list prices instead of sold prices. A list price is a hope. A sold price is a fact.
- Planning a price cut before you even list. The first weeks are the most valuable, and an overpriced start wastes them.
What local signals should Oklahoma City, Edmond and Arcadia sellers watch?
Here is what I pay attention to before we set a plan:
- What similar homes near you actually closed for, and how long they took.
- Whether new construction nearby is competing for the same buyers. I touched on that in Why do Edmond's newest homes take longer to sell than the ones next door?
- What your home has that the comparable sales do not, like architecture, a lot, or design details buyers will pay for.
That last point matters more than people think. If your home has real character, it may need a different kind of presentation, which I wrote about in What makes a home truly cool in Oklahoma City? and in What should you know before buying or selling a mid-century home in Oklahoma City? Kelli Osterman is a REALTOR® with The Osterman Team at The Agency in Oklahoma City, Edmond, and Arcadia, helping homeowners and buyers move forward with a clear plan and no surprises.
What questions do sellers ask about home value when rates are high?
Do I need to remodel before I sell my home?
Do you need to remodel before you sell your home? Usually not. Cleaning, painting, lighting and small repairs do most of the work. A larger project only makes sense when it fixes something buyers will worry about, or when the numbers show it pays off. I will tell you honestly when it does not.
How much does staging cost, and is it worth it?
How much staging costs, and whether it is worth it, depends a lot on whether the house is occupied or vacant and how much you need. Often the most valuable part, decluttering and rearranging, costs you very little. Ask me and I will give you a plan that fits your home and your budget.
How do I know if my house smells?
How do you know if your house smells? You probably cannot tell, so ask a friend who will be honest, or ask me. Pets, cooking, smoke and moisture are the usual causes. Fix the cause, clean the soft surfaces, and air the house out. Avoid strong scents.
Is it ever okay to price a little higher than the comps?
Is it ever okay to price a little higher than the comps? Sometimes, if the home has something truly different that the comparable sales do not capture, and if we are ready to explain it to buyers with facts. But it should be a decision made with data, not a way to leave room to negotiate down later.
Should I wait for rates to come down before I sell?
Should you wait for rates to come down before you sell? No one knows where rates are going, including me. Waiting can help or hurt, and it depends on your goals and what you are buying next. A short conversation about your actual plans will tell you more than any prediction.
What's the next step?
If you are thinking about selling in Oklahoma City, Edmond or Arcadia, call or text me at 405-808-1082, or call or text The Osterman Team at 405-593-8326. I will walk through your home with you, tell you honestly what is helping and hurting your value, and give you a plan to get it ready and priced right. There is no pressure and no obligation.
Kelli Osterman is a REALTOR® with The Osterman Team at The Agency in Oklahoma City, Edmond, and Arcadia, helping homeowners and buyers move forward with a clear plan and no surprises.
