Selling your home is always a stressful proposition. Even if you’re selling a property in a hot seller’s market, the process of listing your home, letting strangers walk around your home, and then dealing with all the paperwork when you get an offer is a daunting process.
Unfortunately, the market today is in a major state of flux. Most real estate industry experts acknowledge that we have a major inventory issue, as most major cities have way more homes listed than can possibly be sold, putting a lot of power in buyers’ hands. However, the same buyers who have the advantage regarding the number of homes on the market are facing issues with mortgage rates. As interest rates continue to climb, mortgage rates are going with them. This is making it more difficult than usual for buyers to get the funds that they need to purchase homes, including yours.Read More »
Work With a Realtor
Lots of people try to sell their home on their own because they want to save some money on a realtor’s commission. That’s certainly a noble concept, but there are plenty of reasons to employ a real estate agent to help you sell your home. Let’s assume that you’re trying to avoid paying a real estate agent 6% commission for selling your home. If you’re going to sell your home for $300,000, that would come to $18,000. That’s certainly no small amount of money, but statistics indicate that working with a realtor may be worth that $18,000 investment.
According to NAR, the National Association of Realtors, homes that are listed with a realtor sell for more money than homes that are sold by the owner. There are other numbers that speak to the need for a realtor. In 2020, FSBO homes (those homes that are listed as For Sale by Owner) accounted for only 7% of the homes that were sold. That means the other 93% of sold homes were sold by a realtor.
Additionally, homes that were sold by a realtor netted around 26% more than homes that were sold by owner. There are several reasons for this. First of all, realtors know how to advertise properties. They also know what buyers are looking for at the time, as most market trends fluctuate, including what amenities appeal to buyers.
In the name of saving the 6% commission that you would pay a realtor, you may be costing yourself the 26% increase in final sales price. You don’t have to be great at math to realize that you would still be netting around 20% more on the price of your home by working with a realtor.
If you’re trying to move your home before summer ends in a few weeks, be sure that you’re working with a realtor. He or she probably comes with a network of potential buyers, some of whom may be looking for a home just like yours. Spend the money, pay the realtor, and sell your home faster and for more money.
Consider Your Price Point
One of the main reasons that homes don’t sell is because they’re overpriced. It’s easy to get defensive when you hear that your home may not be worth as much as you have it listed for, but there are several factors that you need to think about.
First of all, remember what we already discussed about the market. There are a lot of homes on the market right now. For instance, according to Movoto, there are presently more than 21,000 active listings in New York City alone. Even if you don’t live in a major metropolitan like The Big Apple, there may be more homes than usual being sold within your radius. This increase in supply means that people who are buying homes have more power than people who are selling them.
However, the potential buyer pool is also suffering due to the market factors that are plaguing the economy. If you’ve been to the grocery store, you’ve probably noticed the impact of inflation. Inflation rates aren’t only leading to higher prices on eggs, milk, and produce. They also have a direct impact on interest rates, which dictate mortgage terms. Higher mortgage rates mean that it’s harder for buyers to get mortgages.
This has created a major logjam in the market. There are a lot of homes listed, but not a lot of people can get a mortgage. All these facts mean that you will need to keep an eye on your price point and be willing to lower it. Remember, you may have priced your home based on some sentimental attachment, but buyers aren’t moved by that. They want to make their own memories in the home that they buy, and they don’t place any monetary value on your memories.
Stop Putting Off the To-Do List
All of us have a few items that we need to check off the to-do list around our home. Maybe there’s a window that has a crack in it, a mailbox that is leaning a little to one direction, or some landscaping that needs to be trimmed up. If we’re being honest, most of us have a few things on that list that we’ve been putting off. After you’ve worked all week, you don’t want to spend all day Saturday and Sunday doing home repairs. However, if you’re going to sell your home, you may have to.
Much like the realtor discussion that we’ve already had, consider this part an investment in the long-term profitability of your home. There are probably some things that you can do on your own, and you should certainly do that. If the shutters need a fresh coat of paint, take a Saturday, buy a brush, a can of paint, and make them look new again. It will only take a few hours, and it will definitely help the amount that you get out of your home.
What do you do if there are things that you aren’t capable of doing that need done around your home? Do you remember how we talked about how it’s worth it to pay a realtor? It can also be worth it to pay a handyman. There are things that potential buyers will look for when looking at your home. Is the roof damaged? If so, you probably don’t need to try to repair it on your own. Doing so is dangerous, and you may end up doing more harm than good to your property.
Don’t be afraid to call in a professional to handle the jobs that you can’t safely and correctly do around your home. In the same way that real estate agents know how to market a home to get the most out of it, professional repairmen and repairwomen know how to get your home in its best condition.
So, there you have it. There are three tips that can be the difference in getting your home sold before the end of summer and not. Keep in mind, there’s no guarantee that your home won’t sell during the fall. The real estate market never stops, so there will be people out there looking for a new home during fall and winter. However, statistics show that most transactions take place during summer, with spring a close second. If you’re racing the clock to sell your home, work with a realtor, consider your price point, and make your to-do list a to-done list.
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