4 minute read
To maximize potential profit and minimize risk when selling a home, it’s important to understand the current state of the real estate market. Let’s explore factors such as supply, demand, and mortgage rates. These will paint a clearer picture of what you can expect in your home selling journey.
Current State of the Real Estate Market
There’s been volatility in the real estate market over the past few years. Mortgage rates rose from below 3% in 2021 to currently around 7%. This increase has pushed many would-be buyers to the sidelines as they wait for rates to cool.
Also, many current homeowners who locked in much lower mortgage rates are less inclined to move and accept a higher mortgage rate. Therefore, many homeowners are staying where they are for the time being, having already locked in a favorable mortgage rate.
With fewer houses going up for sale, there’s a decline in overall supply. That may be good news for potential sellers, as low inventory levels have pushed home values higher. Those who want to take advantage of this may choose to sell their house to secure as much profit as possible.
Timing Your Home Sale
The saying “timing is everything” certainly rings true when it comes to deciding the best time to sell a home. Market volatility and changes in supply, demand, or interest rates may impact your return on investment when selling a home.
How will home values change if mortgage rates drop over the coming years? Will tightened supply push home values even higher? Keeping an eye on the market at large may be beneficial. It may enable you to make more informed decisions when deciding the right time to sell a home.
Regardless of the macro real estate environment, the best time to sell your home may also depend on your personal life. Whether you’re moving closer to family or retiring in a warmer climate, you may not want to wait for mortgage rates to come down if it means putting your plans on hold.
There are also seasonal influences in the real estate market. Homebuying and selling typically slow down in colder months and increase in warmer months. However, this isn’t always the case. Some states that enjoy warm and sunny weather year-round actually may see an increase in buyers during the colder months. This is the ‘snowbird effect,’ and it illustrates how local or regional markets can differ significantly from the overall market trend.
Pricing Your Home Right
Once you’ve decided to sell your home, the next step would be to work with a real estate agent to determine the home’s value. Some factors that affect home value are the condition of the home, the location, the size of the property, and the state of the local real estate market. Determining the home’s value will allow you to set a reasonable asking price.
Another factor to consider when pricing a home is how it compares to similar homes for sale in the area. What have similar homes in the area sold for recently? Did they sell for over the asking price? Taking a look around the neighborhood for comparable properties will help you set a fair price for your home.
Preparing Your Home for Sale
An essential step in preparing your home for sale is staging the home. This involves rearranging the interior decoration with the intent of making the home more appealing to potential buyers. Removing excess furniture can make a home feel more spacious. Highlight natural hardwood floors by removing old rugs. You may even consider hiring a professional to stage the home, leaving one less thing for you to worry about.
Also, increase your home’s curb appeal by making a few minor repairs or cosmetic changes prior to listing. Mowing the lawn, trimming the hedges, and ensuring the exterior of the home is in good shape will create a good first impression with potential buyers.
Inside the house, make an effort to remove any clutter. This will ensure potential buyers see your home at its best and may result in more interest in the property.
Working With a Real Estate Agent
Working with a knowledgeable and experienced real estate agent during the selling process has a number of perks. It will help to ensure you achieve the best possible outcome in your home selling journey.
They’ll assist you in a number of ways, such as helping determine the initial home price, assisting or offering resources to help stage the home, reviewing any offers to determine which works best for you, and ultimately, negotiating the best possible terms with a potential buyer. They’ll leverage their industry expertise and experience to better benefit you.
55places Can Help Home Sellers
A trusted real estate agent can be a valuable resource if you’re considering selling a home. If you aren’t sure where to start, 55places can equip you with the resources you need to make informed decisions. With a network of hand-selected real estate experts, as well as unbiased content on thousands of active adult communities throughout the country, 55places can assist you in your home selling or buying journey.
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