7 Things Every Seller Should Know in this Market
The real estate market has been red hot for more than a year, pushing prices up in most neighborhoods, which has both pros and cons. While it feels like a great time to sell a house, more than 80% of young people (18 to 34 years old) think now is the wrong time to buy.
So you wonder, "How can I sell my home when no one wants to buy in this market?" Terrific question. Luckily, a little preparation goes a long way to make the process easier and get the most money for your property.
1. Baby it's Hot Outside!
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 and developers don't want to build when essential materials like lumber cost so much.
But the problem might not be only due to COVID. From January 2012 - June 2021, only about 7 million homes were built out of the 12.3 million that were formed in the U.S. between. The short supply has finally caught up as young people plan to start families and purchase their first homes.
It's important to recognize that the U.S. has about 5 million fewer houses than it needs to meet demand. In the local market, Hawai`i faces similar shortage supplies as DEBET's housing report for 2015 - 2025 shows. That makes your residential real estate very 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, ask your Realtor for recommendations. An experienced real estate professional will know which renovations companies are more likely to accommodate your preferred schedule.
3. Find a Moving Company That Follows Safe Procedures
Our state and county has lifted a lot of COVID restrictions, but the virus is still a threat. Make sure you choose a moving company that follows safety procedures and takes your health seriously. The movers will spend a lot of time in your home, so it makes sense to find a company that enforces safety precautions.
4. Interest Rates on the Rise
Economists recognize that the Federal Reserve needs to increase interest rates to combat inflation. Turning down a good mortgage offer because you demand an excellent one could end up costing you more money in the long run.
5. Have a Plan for Potentially Paying Two Mortgages
"Can I sell my home at a high price?" Probably, but it might take a little time to get the price you deserve.
Higher real estate prices mean that you can get more money when you sell your home. But the real estate market isn't quite as hot as it was last year, so don't expect your home to sell the same day you list it. If your current property doesn't sell quickly, you might need to pay two mortgages for your old and new home.
You will likely make your money back when you sell your house, but you should plan for a short-term budgeting.
6. Find Your New Home Quickly
The hot real estate market makes it easy for you to sell, but you may need to find short-term housing while searching for a new house. Work with a Realtor to find a home you love as quickly as possible, but don't rush into it. Choosing a wonderful new home becomes a lot easier when you have a knowledgeable Realtor 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? Let us know so we can help you make informed choices that will help you get a great price for your home, find a wonderful new place to live, and avoid a lot of the headaches associated with moving!
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If you're thinking about selling your home, start with an accurate picture of what your home may sell for today.