Preparing For Your Home Sale
The terms ‘buyers market’ and ‘seller’s market’' get tossed around a lot when discussing the overall real estate market. What these phrases are referring to is whether or not buyers or sellers have the leverage in a home sale transaction. Right now we are still in the midst of an incredible seller’s market. Demand to buy a home is sky-high as mortgage rates have hovered near historic lows this past year. At the same time, the supply of homes to purchase is low because of the historically low inventory of homes for sale. This has created a perfect storm that is benefiting homeowners who want to sell their homes. Not only is this the predominant market sentiment, but it is also backed by data. Profits from home sales have surged over the past year. These profits are a good indication of why now might be the perfect time to sell your home.
The Numbers Behind Surging Home Sale Profits
Before preparing to sell your home, it is important to look at the numbers for why you should sell your home. Home sellers have been able to sell their homes for far more than their asking price. This trend has happened over the past year and the average profit data demonstrates this. According to ATTOM Data Resources, the average profit for sellers has increased 26% from the first quarter of 2020 to this year. In the first quarter of 2020, the average profit for a home sale was $55,750. One year later, the average profit is $70,050. This data is visualized in the chart next to this section.
There is more data that indicates home prices have increased dramatically and so have profits. A spokesperson for S&P CoreLogic Case-Shiller said annual gains were the highest in 15 years. The Federal Housing Finance Agency (FHFA) said its growth was more than twice posted last year. The Case-Shiller index increased at an annual rate of 13.2% in March, which was higher than the annual rate in February. All of the numbers have an upward trajectory, which is indicative of surging home sale profits.
Price Your Home Right
Pricing your home right is important for making sure people want to buy your home. The first thing that a buyer notices about your house is the price. If the price looks too high, people will not want to buy your home. Pricing your house takes market experience and expertise to ensure that you hit the mark and sell your home. If the price of the house is too high, people may not inquire about the house. If the price of the house is too low, it will deter skeptical home buyers and make the house lose value. Finding the perfect price will allow for a faster sale, encourage home buyers to bid, and increase the amount you sell for.
Today’s home buyers find themselves in bidding wars versus other buyers to try and purchase the homes of their dreams. Competition has been fierce between bidders and home sellers are winning in almost every instance. This is why you should contact an expert. You want to use today’s bidding wars in your favor and have people bidding on your house.
Keep Your House Clean
Aside from the price, the second thing people notice about your home is how it looks. If your house is not clean, people will be deterred from buying it. Keeping your house clean should always be on the checklist before attempting to sell any home. Areas should be free of clutter and floors should be visible. The house should also be dusted and vacuumed to give it a fresh, new feel. The checklist also emphasizes cleaning the bathroom. A bathroom is a place that we expect to be clean, so it needs special attention. We recommend walking through the home before selling to see what needs attention and clean from there. A clean home is a happy home that someone would love to buy.
Make Your Home Inviting
Buyers should be able to step into the house and feel at home. The feeling of belonging in a new home is important to get the sale. Opening your blinds is a great first step to let more light in and bring comfort to your home. You should also make sure every light works to ensure nothing in the house needs fixing. In your walkthrough, you should assess if anything is broken and fix it before you sell. Finally, it is important to give every room a clear purpose. Rooms should not just be a space but serve as a bedroom, bathroom, living room, or something else. That sense of purpose in the rooms will encourage your buyers to make an offer on your home.
Final Thoughts
While today’s market is great for sellers, we never know what tomorrow brings. Markets go in cycles and today’s seller’s market could turn into tomorrow’s buyers market. So, if you have thought at all about selling your home, there might never be a better chance than now. Selling your house now allows you to take advantage of your leverage and get the most profit possible. Selling your home is a big deal and we want to make sure you can confidently sell for the right price.
If you have been interested in selling your home, but do not know where to get started, contact us! The team at Streamline Realty knows the real estate market inside and out. We can walk you through the home selling process step-by-step. Together we will let you know how to get the most profit possible out of selling your home. One thing is certain, it’s better to maximize your profit while you can and sell while your house is in high demand. Otherwise, you might be wanting to sell your house at a time when the buyers have all the leverage.
