Latest Real Estate Trends: What You Need to Know When Selling a House
The real estate market is often unpredictable in a world of ever-changing market conditions. Currently, we see low housing supply and high housing demand. This shift has led to a skyrocket in housing prices, creating a home seller’s dream. But situations like these will often see over-eager sellers carelessly make bad decisions.
So how can you take advantage of this hot market, and what do you need to know when selling your house?
Know Where You’re Going
Selling a house in a buzzing market is a double-edged sword. On the one hand, you get the benefits of a high sale price. On the other, you get the downsides of spending that price on a new home.
If the money you make from selling is a significant influence on moving, wait. Then, see if you can find a home for less than you’ll get for your current one. Nothing’s worse than committing to an agreement with a buyer, then realizing your housing options are limited. Thankfully, interest rates are at historic lows. So, if you sell for the same price that you buy, you’ll likely save money in the long run.
Learn How to Sell Your Home Fast
If you’re in a rush to sell your house, now is the time. But speeding through the sale process can come with drawbacks. Your real estate agent will bargain with a buyer’s agent over closing costs. If you make it clear you’re in a rush, you give the buyer leverage over you.
When in a booming seller’s market, consider using a house auction. Most auction companies take 10-15% of the sale price. But in a hot market, you can make far more than your home’s listing. Beware of absolute auctions, which lack a minimum price. You’ll have to take the highest bid, regardless of being pleased with the offer or not.
Know When to Sell Your Home
If you’ve recently bought or refinanced your home, beware of turning around and selling. Even if you make a profit on the base price, you can lose money on additional spending. Sellers typically spend 5-6% on real estate costs. Since the average U.S. house cost $295,300 in June 2020, the average seller spent around $16,241.
In the current market, you can still net a profit spending $16,000. However, you may grab a more considerable sum by waiting. Check what housing experts say about current real estate trends. Learning these predictions may also save you from missing the market peak.
Consider Renovations
Renovations can be a great way to increase your home’s value through minor, calculated improvements. They can also be a great way to sink cash into projects that net negative returns on investment. When sellers are in demand, you may be able to avoid otherwise needed renovations.
It might be tempting to renovate if you know the improvements will provide a profit. However, consider the opportunity cost of spending time, money, and effort on your old house instead of your new one. For example, your casa might be desperately in need of fresh bathroom tile that it won’t get if you focus on your old home’s kitchen backsplash.
Consider which housing renovation will provide greater long-term returns. A way to determine is to see if your neighborhood is improving or decaying.
MISS10N Realty Group offers a la carte services such as photography, staging, and contract review or writing. We also have a full-service realtor. And we put 10% of our commission into a charity of your choice. Contact us today to learn how we can help you!
Key Takeaways
1. Make sure your destination is affordable and habitable.
2. Know when to use an auction.
3. Avoid rushing into selling soon after refinancing or buying.
4. Consider the market value of renovations.