If you plan on selling your home next year and want to get the highest price possible, you should put it on the market at the beginning of the spring selling season. There tends to be less competition at that time, so homes listed in early spring will typically sell faster and closer to their list price than those listed later in the year.
You’re probably thinking that spring is many months away, and you have plenty of time to get your house ready to sell. But spring comes early in real estate and home sales start heating up in February, right after the Super Bowl.
So, really, you have only about three and a half months to get ready.
Most people drastically underestimate the amount of work involved in preparing a home for sale. Don’t be one of them.
Home Sale Prep List
Here’s a list of things you can do NOW, to make sure your home puts its best foot forward when the spring market rolls around.
- If the leaves are still on the trees, take photos of the exterior of your house now. Your house will look so much better than it will in January or February when the photographer shows up to take listing photos. One caveat: make sure there are no Halloween or other seasonal decorations in your photos.
- Make a schedule. Set February 1 as your go-to-market date and work backwards from there, listing all of the things that will need to be done to get your home ready for sale. Then put them on your calendar and start knocking them out.
- Have a pre-listing inspection done on your house. This is the same kind of inspection that your buyers will have done once their offer is accepted. It will cost you between $400 and $600 but it is well worth it. It will identify everything that needs fixing, and then you can take the time to get multiple bids and schedule the work.You will be shocked at how long the inspector’s list of needed repairs is, but it’s better to find out about them in advance and get them taken care of than to have your buyers hold your home sale hostage over the inspection credits they want.
- Have your real estate agent or home stager walk through the house with you and point out low cost updates or changes that you can make to maximize your home’s appeal. This could include rearranging or editing the furniture, applying a fresh coat of paint, removing wall-to-wall carpeting, or updating cabinet hardware or light fixtures.
- Get rid of the clutter! Undoubtedly you will have lots of stuff that needs to be packed away, donated, or disposed of, and dealing with it can be very time-consuming. Plan to tackle one room (and its closet) each weekend. Sort everything into four piles: give away, throw away, sell, and keep. Be ruthless. If you have trouble letting go of things or you find it all too overwhelming, line up an organizer to help you.
If you have been keeping china, glassware, or furniture to pass on to your adult children, ask them if they even want it. Chances are they don’t, so now is the time to sell it or donate it.
Selling your home is a big undertaking. Doing these five things now will get you well on your way to a successful home sale and help you maintain your sanity in the process.
This is SO IMPORTANT for you to know as a Buyer or Seller so that you can strategize your plan of action wisely and accurately. Of course, your agent can easily explain this to you, but you need to understand it! Make no mistake, if you don’t pay attention to the difference in these two markets, you may not enjoy the results of the transaction.
What you need to know when buying or selling a home.
One important thing to remember about the property market is that it’s always in a state of change. Sometimes the market is favorable to buyers and sometimes it’s favorable to sellers. But don’t worry, a knowledgeable agent can guide you in the sale or purchase of your next home, no matter what type of market you’re facing.
What is a Seller’s Market?
A seller’s market is simply a property market that benefits you as a seller. In a seller’s market, there’s a scarcity of properties, which can drive up the price of homes, especially in desirable locations.
Sellers can depend on real estate experts to know what the market is doing, but here are some signs of a seller’s market:
– Low inventory when compared to previous months and/or years
– Homes are selling faster
– Less than six months of inventory on the market
– More homes are selling
– Median sales prices are growing
– Less information in real estate ads; just the bare details
– “For Sale” signs don’t stay up long before being replaced with “pending” or “sold”
What is a Buyer’s Market?
A buyer’s market is the opposite of the seller’s market. If you’re buying at this time you’ll be spoiled for choice as the supply of homes on the market exceeds the number of buyers, giving you the chance to score a fantastic deal.
A sharp agent will quickly be able to tell you where the market lies, but here are some signs of a buyer’s market:
– Inventory that is high when compared to previous months and/or years
– Homes are selling more slowly
– More than six months in inventory on the market
– Sales prices are shrinking
– Fewer sales are taking place
– Real estate ads are growing in size, giving more details and/or images
– “For Sale” signs are staying longer, meaning the days on the market are longer too
How Do I Figure out the Months of Inventory in a Market?
1. Look for the total number of active listings for the month prior to the current one
2. Look for the total number of sold or closed transactions for the same time frame
3. Divide the total number of listings by the number of sales. This figure represents the number of months of inventory there are.
For example, let’s say there were 6,500 listings in one month’s time. During that same time, there were 1,500 properties that were sold. Divide 1,500 into 6,500 and you arrive at 4.3 months of inventory, meaning that this is a seller’s market.
While a savvy real estate agent is the best resource for this information, other resources include real estate listing websites and/or your local real estate association.
Do All Markets Follow the Same Cycles?
Markets are always in a state of flux. At its core, people are the driving force behind the real estate market.
For example, as more people move into a location, the more need there is for housing. If the number of properties in the area cannot support the number of people moving in, prices of existing homes will likely rise until more homes can be built.
This constant change to the supply and demand in a market is how markets shift back and forth from being more favorable for either buyers or sellers.
Can I Buy in a Seller’s Market?
Absolutely, but it’s not going to be a walk in the park. You’ll need determination, knowledge, and most importantly, someone on your side who knows the market inside and out.
Something to consider – you don’t know the seller’s true reasons for wanting to sell. Maybe there’s a divorce pending or another baby on the way and they need more space fast. Whatever is going on with the seller, a savvy agent will spot opportunities to help you and the seller arrive at a mutually agreeable solution.
One key reason it’s vital to engage an agent in a seller’s market is for their negotiating skills. While it’s important to always negotiate, a seller’s market calls for serious help to ensure that you don’t pay more than you need to.
Should I Wait to Sell?
It depends. Is it mandatory that you sell right now or could you wait until it’s a seller’s market again?
Consult with an agent to get his opinion about your chances of getting what you need or want for the sale of your home. He just might have some options you may not have considered that will help you get out from under your home and get on with your life.
Don’t be afraid to sell or buy if you think the market isn’t in your favor. The real estate market can be highly varied, so trust your agent to help you get the best possible results, no matter what the market looks like.
Source: CB Blue Matter