7 Things Every Seller Should Know in this Market
Unless you've been living under a rock as of late, you're probably keenly aware that the real estate market has been red hot for more than 2 years now , pushing prices up in most neighborhoods. These high prices come with pros and cons for everyone, 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 if these folks don't want to buy?" 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. Developers don't want to build single-family homes when essential materials like lumber cost so much. In our area of Colorado Springs and the surrounding Pikes Peak Region, the developers would LOVE to open up new projects, but the system can't keep up with that demand either.
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 incredibly 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? Make sure you set aside plenty of time and money.
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 (hopefully, me!) to get recommendations. An experienced real estate professional (like me!) will know which renovations companies are more likely to accommodate your preferred schedule.
3. Find a Moving Company That can deliver on time with great reviews!
There are a lot of moving companies that haven't fared well with the pandemic. Some work force issues could cause a major disruption and delay in your life if you are unaware of the issue. Be sure to get a "gut check" on the company you decide to hire and make sure that their workforce is solid. Check out their reviews and ask your Realtor (again, hopefully me!) for a few referrals as well!
4. Interest Rates Have Already started to Climb
Many economists believed that the Federal Reserve needed to increase interest rates to combat inflation. It's an ongoing discussion, so nothing is certain, but we've seen jumps in the mortgage rates already. This could have an effect on the buyer pool looking at your home and could cause a bit of a slowdown (nothing is certain) on competition. Be ready to move on something soon if you're in the market to purchase or thinking about refinancing. Turning down a good mortgage offer because you demand an excellent one could end up costing you more money.
5. Have a plan to find a home while listing yours!
Higher demand in our market means that you can usually get more money when you sell your home and typically, homes are selling fairly quickly if priced and marketed correctly! The issue that some folks are running into is that they need to find a home to which they can move after selling their current home! I can help!
The current demand also means 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. If you hire me as your exclusive agent, I will help you create a solid plan to maximize your time, effort, and monetary investment so that you'll be able to sell your current home and move into your next one with confidence (see below)!
6. Work With a Full Time Real Estate Agent (ME!!) to Find the Right New Home Quickly
Not everyone finds a new house before selling their current one. Some 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.
You can make some of your money back when you need to cover two mortgages for a few months. You don't get that benefit when you pay for short-term housing.
Work with a real estate agent (ME!!) so you can find a home you love as quickly as possible. 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 (Again...ME!) 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 the best price for your home, find a wonderful new place to live, and avoid a lot of the headaches people associate with moving!