There has been a massive demand amongst homebuyers this year. Interest rates for mortgages are incredibly low and people are looking for stability and security following the pandemic. On top of that, the supply is low as well since many homeowners are staying put. While such a seller’s market might seem like a big advantage if you plan on selling your home, it could be a detriment as well. The following are a couple of reasons why you should be careful if you plan to sell your home during this seller’s market:
- Finding a new home can be a challenge – Home values have skyrocketed, and with so many buyers out there, you may even get more than what you expected should a bidding war start. But remember that there’s a flip side: if you need to buy a home after you sell, you’re going to face stiff competition and may end up overpaying for a new home.
- Many buyers are waiving home inspections – Buyers are waiving certain contingencies, such as home inspections, as a way to entice sellers to accept their offer. However, it may be a mistake to agree to this. Should the home inspection be waived and the buyer finds something wrong with the house after the fact, you may find yourself in a messy legal battle.
- Many buyers are waiving appraisals – If a buyer waives the appraisal and submits a bid that’s much higher than the appraisal would have been, they’ll get stuck having to cover the difference, which they may not be financially capable of doing. As a result, the deal may fall apart.
Be careful when navigating a seller’s market as a home seller. For more advice on selling your home successfully, be sure to contact us at Randy Lindsay today.
When it comes to selling your home, you need to understand exactly who might be interested in buying it. Only then can you reach them through your marketing efforts. Don’t assume that everyone might be interested, otherwise you won’t be able to market your house effectively and can therefore miss out on potential buyers.
Understanding Your Buyers
If your house only has two bedrooms, then a buyer with a large family isn’t going to be interested. Trying to market your house to those buyers will be a waste of time. However, if you have a four-bedroom house, trying to target single buyers isn’t a good idea either. For example, highlighting bars in your area might appeal to single buyers, but they won’t have a need for that many bedrooms. You’re first step should be to figure out what types of home buyers your home will appeal to.
Finding The Right Buyers
When you put together your listing, which includes a description of your home, the neighborhood, and photographs, you need to keep in mind the type of buyer you’re trying to target. If your house is tucked away in the suburbs far away from the city, highlighting a potential home office is a good idea. If your home is in a quiet area and falls within a great school district, you should target families by noting these facts in your description.
As for where to find these buyers, a good real estate agent can help. They can help put together a listing that’s properly optimized for the right keywords and that highlights the right features to attract your target audience. Additionally, local agents have large networks, which means that they can connect with other agents to find buyers who fit the profile you’re trying to market to.
When selling your home, keep the buyer in mind. For more advice on how to sell your house successfully, contact us at Randy Lindsay today.
If you plan on selling a home, then one of the first things you should do before listing your property is to determine what buyers actually want. Knowing what buyers want will allow you to invest in improvements that can help boost your home’s value and sell it more quickly. It can also help you market your property more effectively by highlighting features of your home that are in demand. The following are a few things that homebuyers have been looking for, particularly during the pandemic:
- Home office – A significant number of people began working from home during the pandemic, and many of those people will continue to work from home. As such, a home office has become an absolute must for many homebuyers. If you have a spare bedroom, consider setting it up as a home office.
- Segmented space – Open floor plans were all the rage not too long ago – but that was before families were stuck at home together. Segmenting your space (such as through the use of pocket doors and other dividers) helps to preserve the quiet and privacy that your family desires when everyone is home.
- Upgraded outdoor space – There’s no doubt that everyone has a newfound appreciation for the outdoors after having been stuck inside for months. As such, many homebuyers want to make sure that they have an outdoor space they can enjoy should they ever be forced into lockdown again. Upgrade your outdoor space by investing in various outdoor living areas (such as installing a fire pit) to attract even more potential buyers.
These are just a few things that homebuyers are looking for these days. For more advice on what homebuyers are looking for and on selling a home in general, be sure to contact us at Randy Lindsay today.
If you own a home and you plan on moving (or you’ve invested in a property that’s not your primary home), then you’ll want to figure out what to do with it. Selling a home might be the first thing that comes to mind, but there’s another option: rent the property.
The following are 3 considerations when deciding whether to rent or sell a home:
- Local real estate market – A “seller’s market” is the best time to sell. It means there are a lot of buyers and a low supply, so you’re more likely to sell your house at the listed price. Check local listings for properties similar to yours. See what they’re selling for and how long they’ve been on the market. If they’re selling for lower than what you expected and are taking a long time to sell, then selling a home might not be worth it.
- Profit Potential – If you can make a significant amount of profit on selling a house due to increased demand, you might want to go that route. This is especially true if the potential rental income barely covers expenses, including the costs of your mortgage and maintenance.
- Rental property upkeep – Having a rental property income can be nice, especially if you’ve paid your mortgage. Keep in mind: As a landlord, you will be responsible for maintaining the house. Unless you hire a property manager (which can be costly), being a landlord may take up a lot of your free time.
These are just a few things to keep in mind when deciding between selling a home or renting it out. For more advice on buying or selling a home, contact us at Randy Lindsay today.
As a home seller, you are legally obligated to reveal all information you have about the house you’re selling, including knowledge of any existing issues. Generally, it’s best if you make the necessary repairs prior to putting your house on the market. Few buyers want to deal with repair work unless they’re investing in a fixer-upper.
As soon as you accept an offer, a home inspection will need to take place. Who pays for that home inspection can vary.
Why Is Home Inspection Necessary?
A buyer won’t want to be surprised by expensive problems after buying your house. Even if you’ve had a previous inspection and have invested in repairs and renovations, the buyer(s) will want another inspection of their own. Perhaps there have been issues that were overlooked or new issues have developed.
Do You Need to Pay for It?
Usually, the buyer will pay for the inspection. However, it’s not uncommon for sellers to pay for the inspection if negotiated. If you’re facing a buyer’s market, buyers may have more negotiating power. They may request you pay for the home inspection.
If your house has been on the market for some time and you haven’t had many interested parties, the cost of the inspection might be a valuable incentive. Generally speaking, a professional home inspection costs between $279-$399. The cost varies based not on the size of your property but also depends on where the property is located. The national average, according to Home Advisor, is $388.
Who pays for the home inspection is often part of the negotiation process. For more advice about buying or selling a home, be sure to contact us at Randy Lindsay today.
In an ideal world, the moment you stick a for-sale sign in your front yard is the moment buyers line up with offers. Unfortunately, selling a home is not that easy. The home selling process can take some time. To properly plan around this process, it’s crucial that you understand the timeline of selling a home. The following is a general breakdown of the typical home-selling timeline:
- Researching the local market – To understand the value of your house and how much negotiating power you’ll have, you’ll need to research your local market. Look at recently sold comps to get a good idea of the demand in your area. Begin research at least two months before you plan to list.
- Hiring an agent – A real estate agent can help you prepare your home for sale, pinpoint the right asking price, and line up buyers. Begin working with an agent six weeks before listing.
- Preparing your home – At the same time you hire an agent, you should begin prepping your house by making repairs and investing in home improvements that will boost the home’s value.
- Moving out – Although you don’t have to be moved out before you begin showing your home, it’s a good idea to be. If you can, begin moving out around a month before you list.
- Marketing your property – Start advertising your property online a week before you officially list it on the market to begin generating interest.
- Selling your property – Once listed, it can take anywhere from a few weeks to a few months to sell. The average home stayed on the market for 24 days in 2020. However, keep in mind that closing can take an average of 46 days, which means from the day you list to the day you close can last roughly two months.
All in all, expect to spend between three and four months preparing and selling your home. For more home selling advice, contact us at Randy Lindsay today.