7 Things Every Seller Should Know in this Market
The real estate market has been red hot for more than a year, pushing prices up in most neighborhoods. The high prices come with pros and cons, though. While it feels like a great time to sell a house, more than 80% of young Americans (18 to 34 years old) say that now is the wrong time to buy.
You might wonder, "How can I sell my home when no one wants to buy in this real estate market?" That's a terrific question. Luckily, a little preparation can go a long way in making the process easier and helping you get as much as possible for your property.
1. The Real Estate Market Is Red Hot Right Now!
The real estate market is red hot right now because supply has not kept up with demand. To some extent, the short supply comes from the high price of construction materials. For Developers, pricing new single-family homes has become unpredictable when essential materials like lumber costs are so high and supply chains disrupt their build schedules.
The problem might not be as recent as it seems, though. About 12.3 million households were formed in the U.S. between January 2012 and June 2021. During that same period, only 7 million homes were built. The short supply has finally caught up as young people plan to start families and purchase their first homes.
What's important for sellers to recognize is that the U.S. has about 5 million fewer houses than it needs to meet demand. That makes your residential real estate very valuable.
2. Expect to Spend a Lot of Time and Money on Home Improvements
Do you plan to invest in some home improvements before putting your house on the market? You may have to set aside plenty of time and money. Before deciding on improvements, talk to your realtor to see if it is necessary to accomplish a sale and what sort of return you might make on the investment.
Supply chain disruptions have forced contractors and construction companies to charge higher prices and work at slower paces. Many of them would love to get more work accomplished. Unfortunately, it's hard for them to source some of the materials they need to keep up with client requests.
Talk to contractors now so you can get realistic price and time estimates. If you don't already have a contractor, talk to your realtor to get recommendations. An experienced real estate professional will know which renovations companies are more likely to accommodate your preferred schedule.
3. Find a Moving Company That Follows Safe Procedures
A lot of cities and states are lifting COVID-19 restrictions. The virus is not gone and new variants could pose future threats. Make sure you choose a moving company that follows safety procedures and takes your health seriously. The movers will spend a lot of time in your home, so it makes sense to find a company that enforces safety precautions for you and your entire family.
4. Interest Rates Are On the Rise
Many economists believe that the Federal Reserve will continue to increase interest rates to combat inflation. It is almost a certainty for at least the next several months. Waiting to put your house on the market later in the year could eliminate some buyers who are in the market now and could be priced out of the market in the coming months by rate increases. It could also mean a higher interest rate for you on the purchase end you plan to take out a mortgage. The higher the interest rate, the less home you qualify to purchase.
5. Have a Plan for Potentially Paying Two Mortgages
"Can I sell my home at a high price?" Probably, but it might take a little time to get the price you deserve.
Higher real estate prices mean that you can get more money when you sell your home. The real estate market is hotter than it was last year, and right now you can expect your home to sell within days of listing it depending on several factors, including your location and price expectations.
The higher prices also mean that you will probably spend more on your next home. If your current property doesn't sell quickly, you might need to pay two mortgages for a few months. You will also need to check with your lender to see if you would qualify with two mortgages. If not, you should consider other buy before you sell options.
6. Work With a Real Estate Agent to Find the Right New Home Quickly
With a lack of inventory in most areas it may be more difficult to find a new house before selling your current one. Other homeowners experience the opposite problem: the hot real estate market makes it easy for them to sell, but they need to find short-term housing while they search for a new house they love.
Work with a real estate agent so you can find a home you love as quickly as possible and can provide guidance on how to structure your offer to be the one most attractive to the Seller. You don't want to rush into a decision. Choosing a wonderful new home becomes a lot easier, though, when you have a knowledgeable realtor on your side.
7. Find the Real Estate Assistance You Need!
Are you ready — or at least thinking about — putting your house on the market? Get in contact so we can help you make informed choices that will help you get a great price for your home, find a wonderful new place to live, and avoid a lot of the headaches people associate with moving!