While More Black Americans Made Concessions To Sell Homes, Nearly 40% Sold To An All-Cash Buyer

Some 95% of Black Americans made compromises when selling their homes during the past two years amid a strong market, new research shows.

The percentage was higher than the 90% of sellers who made such concessions overall. Fresh data show how home sellers in 2021 and 2022 adjusted their priorities between low housing stock and home demand reaching new highs. The new data is tied to one report and information provided to BLACK ENTERPRISE

Simultaneously, nearly 40% of Blacks sold to an all-cash buyer. That was 33% higher than for all sellers surveyed. Sellers typically prefer all-cash deals because they speed up the closing.

Thirty-seven percent of Blacks sold on the buyer’s timeline versus 31% for overall respondents, and 36% of Blacks made repairs versus 32% for all sellers. However, Black Americans (34%) had to make concessions/contingencies with buyers, less than 36% for all sellers. Additionally, 31% of Blacks sold for less than expected, under 36% for respondents entirely.

Jaime Dunaway-Seale, the study’s author, shared that 21% of Black Americans reported they sold to move to their dream home or a home that better suited their needs. In contrast, respondents overall indicated they acted because “It was a good time to sell.”

However, more Blacks potentially could have made concessions than others to sell their homes because their houses tend to be older and smaller due to systemic racism and bias in their neighborhoods.

“They may have had to sweeten the pot to attract more buyers to their home,” Seale shared.

Other key findings showed how Black sellers responded to the shifting housing market this year from last year. Some 43% said they sped up their plans to sell sooner this year, 10% higher than for the 39% of sellers overall. Dunaway-Seale said it’s possible Blacks wanted to sell before interest rates continued to rise, likely weakening buyer demand even further.

Further, Black Americans (94%) had regrets about the selling process, slightly higher than all respondents. Some 29% of Blacks said their home didn’t sell for enough, versus 20% for everyone quizzed.

“This isn’t surprising, considering that Black Americans sold their homes for about 11% less than the overall respondent pool,” Seale explained.

To boot, 27% of Black Americans said they should have made more repairs before listing, a tad higher than for all sellers. “Making repairs is important because homes in good condition attract more buyers and could likely sell for more,” Dunaway-Seale said.

The enlightening news is that you can take steps to sell your home faster. Here are some tips Dunaway-Seale offered to help you achieve that:

Make repairs: 25% of Americans said they should have made repairs before listing their home, the most common regret among sellers. Simple repairs like touching up paint or replacing outdated cabinet hardware can make a major difference to buyers.
Stage your home: Homes sell faster when buyers can envision themselves living there. You can reposition furniture to make rooms look bigger, keep curtains open to let in light, and remove personal items.
Price your home right: If you value your home too high, it could turn people away. Contrarily, pricing your home too low could make people wonder if there’s something wrong with it.