If you own a home, hearing that “it’s a seller’s market” may pique your curiosity. For months, the limited supply of homes on the market has given sellers an advantage as buyers looked to lock in low mortgage rates But is that still the case?
There is an inventory shortage in many markets, which makes it a good time to sell because you’ve got limited supply, and demand is still out there. If you are considering selling your house. It may still be the right time. As existing-home sales in 2021 reached their highest level since 2006, prices followed. The National Association of Realtors (NAR) reported the median existing-home sales price was $309,800 in December 2020, up 12.9% from one year earlier. With prices surging, homeowners wonder if this is the right time to make a move.
There's a reason housing inventory has been sluggish throughout the coronavirus pandemic. Given the general uncertainty that describes a lot of people's lives right now, many potential sellers don't want the upheaval that comes with listing a home and having to move. There are also safety concerns to consider. Inviting strangers to view a house is an awkward prospect in the best of times. During a pandemic, it can be dangerous from a health standpoint. Still, if you're looking to sell your home, you may want to get moving sooner rather than later. Here's why. February's housing inventory was roughly half of what it looked like a year ago. That's a bad thing for buyers, but a great thing for you, as a seller. The reason? Limited inventory means buyers will have to duke it out over your home if it's only one of a few of a certain size or at a certain price point in your neighborhood. The result? You could walk away with a higher price for it. And seeing as home values are inflated already, that means you could profit big time.
But soon its estimated a flood of new homes could hit the market, as that's a far more popular time to list a home than winter. And more options for buyers could mean a lower sale price for you.
Also, we could see more people list their homes as coronavirus vaccinations become increasingly available and things improve on the pandemic front. That would, of course, be a good thing -- but from a seller perspective, it could pose more of a challenge for you, so you may want to beat that rush.
After months of sitting at or near record lows, mortgage rates have started to climb, and while they're still attractive on a historical basis, they're less appealing today than they were a few months ago. We don't know what direction rates will go over the next few months, but if they continue to creep upward, the demand for homes could begin to wane. And a reduction in buyer demand could lead to a lower sale price for you. That's why you may want to put your home on the market sooner rather than later -- before rates push buyers away.
What's more, even if rates drop in the coming month, listing your home today is still a good call because many buyers will want to take advantage of today's rates in case they go higher. Without a crystal ball, there's no way to know how they'll trend, but right now, they're low enough to remain attractive.
Based on the state of the housing market and what mortgage rates look like, now's a good time to sell a home in general. But to see if it makes sense for you to sell right now, you'll need to also consider your personal circumstances. Specifically, you should ask yourself:
Of course, your general pandemic-related comfort level should factor into your decision as well. If the idea of having people traipse through your home doesn't sit right, then it could pay to wait to sell. It's not worth risking your safety for a higher sale price.
That said, if you're nervous about having a stream of people coming in and out of your home, you can work with your real estate agent to set up a virtual tour, where prospective buyers can scope out your home in an interactive fashion online. Then you can set up limited showings at times when you can vacate the premises to avoid close contact with others.
Ultimately, selling a home right now could work out very well. Just make sure it's the right thing to do based on your specific situation.
If you’re opting to wait before selling your house, you may be looking for ways to add to your home's value.
Homebuyers are intrigued by listing photos and want to make sure the selling price is right. Upgrades that are considered capital improvements are tax-deductible. Not to be confused with repairs, capital improvements, as defined by the Internal Revenue Service (IRS), are permanent improvements of a structure or property that enhance features, use, or prolong the useful life of the building.
Home improvements may be worth it if you want to rope in a potential buyer. Examine whether your home is in a marketable condition before uploading listing photos. A few tweaks here and there could lead to price growth and help you sell your home fast.
“Upgrading the kitchen and bathrooms may make a meaningful difference in getting you the highest possible price when you go to sell,” said Askia Muhammad-Realtor.
Installing new windows or exterior doors increases your home’s value while making it more comfortable for the duration of your time there.
Knowing what your home is worth can help you decide when to sell and what your asking price should be. It can also help you determine if you should make some repairs or updates first. Since your home is such a major financial asset, it’s important to make informed decisions when you’re getting ready to sell.
You can get a Free home value estimate online. It is based on sales price data gathered from public records. It is not based on a licensed appraisal of your home. Estimated value can vary depending on location, current market conditions, data availability in a given area, and other factors. these estimates can be found on sites like Zillow and Redfin. (not very accurate)
A Realtor can provide you with a Free comparative market analysis (CMA). A CMA consolidates all the data from available from comparable homes, market trends, home condition/ updates, and recently sold and active comps. This gives you an estimate of what your home value should be. (very accurate)
Enter your Address and home details for a detailed Competitive Market Analysis or CMA. This market report includes your sales price, list of comps, market trends and more, at no cost.