Market experts predict that the real estate market will grow on average 6.8% for the next twelve months. We should expect the market to grow slightly slower than last year’s 7% average appreciation.
The current real estate market is still adjusting to the effects of the pandemic. So, doing all you can to make money on your home is very important.
Making the best decisions requires knowing what is driving the sale of homes in your area. There’s evidence that buyers are flooding the market now due to low mortgage rates as well as a stabilizing housing inventory.
But, things are changing every week. It is vital not to rely heavily on expectations based on the historical housing data.
What buyers are looking for in a home is changing, partly driven by remote working and social distancing. It might be too early to forecast what all these changes mean to the market long term.
There are still things that will impact your priorities in getting ready to sell your home. So, if you decide to sell your home, we have come up with this guide to help you sell your property fast. Keep reading to know the 11 tips for selling in the current real estate market.
1. Do Your Homework
Careful due diligence is important now more than ever. That’s because otherwise, you can’t accurately gauge the best value for your home.
Since the property market surges, property value is more difficult to determine. Consider using recent equivalent sales to aid you in estimating the price of the property you are looking to sell. You can do so by visiting sites that have listings to find sellers.
Also, consider doing micro suburb-based research to understand why some are more desirable and worth more value than others.
Visit many auctions to help in understanding the mood of the current market. You will also see what the properties are selling for in the real estate market.
A vital part of your research is the selling prices and what sellers advertise as the asking prices. The selling prices will inform you about what is happening on the ground.
2. Set the Right Price
As we have seen, knowing the right price to list your property can be tricky. You should be able to trade your property fast and still make the most money from the sale.
Here you will need a good agent. Your agent needs to complete a comparative market analysis (CMA). The analysis shows you what similar homes are selling for in your area.
Many agents perform the CMA for free. That makes it possible to ask and compare CMAs from various real estate agents before deciding who to list your home with in the market.
Many agents use CMA to price homes, but that changes with time. The previous focus was on the final closing price of comps or comparable home sales.
Now, buyers can quickly see other homes for sale. Agents are basing listing prices more on the competing homes’ prices in the current market. Agents are using comps to support these numbers.
Note that when you list your property too low, you are risking leaving money on the table. Also, if you list it too high, you might scare away potential buyers.
Avoid being emotional in your decision-making. That way, you will not invest too many emotions in your property, leading to overpricing.
3. Make Essential Repairs
When selling, you don’t have to hire a home inspector. But you might want to anyway. Real estate market experts recommend getting an inspection before listing.
This is because the inspection helps preempt some potential negotiation points from buyers. Also, making the necessary repairs in advance expedites the closing process.
Note that prospective buyers will have to complete an appraisal. That is a different type of home inspection that helps lenders confirm the value of your property.
There are tough safety and health standards for government-backed loans (VA, FHA, or USDA). An appraisal for such loans is likely to come back with repair issues. For instance, an FHA loan will require handrails for steps, and all bedrooms must have outdoor access like windows.
A pre-market inspection is very important if you think your buyer will need a government-backed loan.
4. Enhance Curb Appeal
You make a first impression only once. Making inexpensive cosmetic enhancements to your property will have a significant impact.
When selling your home, curb appeal is paramount. Consider making simple touches to come up with an inviting environment.
You can paint doors, add new light fixtures, and pot a few plants. That way, you will set a good tone for potential buyers when they come to view your house.
It’s true: you will never know what a buyer wants. So, avoid expensive kitchen and bathroom remodeling.
Some good starting points are painting, updating kitchen hardware, and replacing faucets. When addressing your house interior, a fresh coat of paint will be the least expensive and the most powerful thing you will do.
Consider removing your personality from the space. Pick one relatable color and stick to it throughout the property. Neutral colors are ideal.
5. Go for a Cash Offer
Going for a cash offer is the fastest way to sell your house. When buying with cash, the buyer does not need to take any mortgages or financing.
Buyers offer an all-cash bid with this offer. Note that sellers find this technique more attractive because the closure times are shorter. Also, there will be no risk of the buyers’ financing failing to come through.
Some buyers acquire the house to flip for profit. Are you looking for some quick cash off your property? Consider making a cash offer as long as you negotiate a good price for it.
The option is also good for people not looking to make home repairs and improvements since the technique will not allow you to stage your house or negotiate with a real estate broker.
Going for a cash offer is the perfect choice for fast cash with no strings attached.
6. Consider Selling the House Yourself
You can decide to go for the option of “for sale by owner” (FSBO). Here you will sell the house yourself. Do this by listing the house on FSBO-focused sites.
The sites will aid you in marketing the property. After listing your home, you will have to coordinate showings with buyers or a real estate agency.
Remember that you have to cater to the negotiations, contracts, and other factors in the sale on your own. Also, if need be, hire an attorney.
You will have total control over the price level you need to be on, the marketing methods, and showing arrangements. You have total control of the whole process without the need to hire a real estate agency.
The sale option is excellent for you if you are not in a rush to sell, know the entire selling process, and market the home yourself.
7. Negotiate the Best Offer
Having multiple bidders is the best way to negotiate for a good offer. Then, you can have the real estate agent reach out to the potential buyers.
The agent lets the buyers know the many bids on the property and asks for their best and final offers. Note that the highest price offer may not always be the most suitable deal because there could be some contingencies in the offer. Such contingencies protect the buyers by allowing them to get out of a deal under specific circumstances.
Such circumstances include:
• The sale of the buyers’ current homes
• Home inspection
Some contingencies are standard. Depending on the mortgage type, like the appraisal for a VA loan, they can be waived. But, the ability for a buyer to back down from the deal when they cannot sell their current home is optional.
Consider negotiating the contingencies to where you feel comfortable.
8. Trade-In Your House
If you want to sell your home so you can buy another one, try working with a company to aid you in trading your home.
Here is how that works. The company buys your home and sells it for a good price on your behalf. Then, they use the cash to help purchase a new home for you.
By using this method, it is easy to sell your house and purchase a new one simultaneously. Also, you will be avoiding the burdens of mortgages.
If you do not want to go through listings, showing, and closing, this is an ideal option for you. Consider checking if the market you are in allows for these programs.
Also, go with a reliable and competent company. That way, you will complete the sale and purchase without setbacks.
9. Time Your Sale
Note that the time you list your house will affect the amount it sells for in the market. Also, it will affect the length of time you will have to wait for it to sell and at the price you want.
The pandemic shutdown is changing the real estate market sales time when things usually heat up. Now, sellers react to market conditions and often decide not to sell their properties.
Due to the few buyers in the market, the supply of homes for sale and prices are still fairly stable. But, with mortgage rates near an all-time low, some real estate markets are showing signs of increased activity.
But, banks are still tightening lending guidelines. Down payment and FICO score requirements increase as lenders scrutinize borrowers more thoroughly.
If you want to downsize or are retiring, waiting for the prime time of the year to sell your property will not make sense.
The best time to sell is now. Take other steps to get the best return for your home. That way, you will diminish the impact of selling your home even when the market is not optimal.
10. Decide on Your Showing Plan
Due to the pandemic, the lack of available inventory makes buyers do online house viewings. Most buyers prefer to view the home through videos and photos before having an in-person showing.
It is most likely that buyers will find your house through the internet. So, ensure your online listing shows are portraying your property’s qualities in the best way possible.
11. Sweeten the Deal
A nice way to make your deal more attractive is by offering something to sweeten the pot. For instance, you can offer to pay some or all closing costs.
Buyers want a deal, particularly in a down market. So, ensure they feel they are getting one by purchasing your property.
Another good sweetener is offering a transferable home warranty. The warranty offers discounted repairs and replacement services. Also, it covers household systems and appliances.
Potential buyers will be at ease when they know the warranty protects the house. Sweetening the deal makes your house more attractive than a competing house.
Use Our Tips for Selling Property in the Current Real Estate Market
When selling property in the current real estate market, getting that important deal is always about making your home stand out. You should ensure you spend as little additional money and time as possible as a real estate seller.
Go with the one that will allow you to make the greatest profits quickly. If you lack a big budget to get the property sell-ready, consider focusing on the first impression.
Note that buyers can make final decisions within seconds. So, make the seconds count by enhancing curb appeal.
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