Are you close to retirement but not ready to move yet? Are you living in a home that is too big in size and maintenance needs? When you retire would you like to stay in your home or does downsizing and vacation destinations sound like a better option?
The answer for many empty nesters and retirees lies directly in their home equity.
According to the newest Equity Report from CoreLogic, the average homeowner in the United States has seen an estimated $14,000 gain in their home equity in just the last year alone. On the West Coast, where the Real Estate Market is thriving due to the tech industry, homeowners have gained twice that amount, some even more than that!
If you’re unaware or unsure of how much equity your home has earned in recent years, please feel free to take my Free Home Estimate.
In this Seller’s Market, homeowners have the advantage. Especially in Seattle, where supply has yet to catch up to the demand, Homeowners can quickly sell their current house and use the profits from that sale to downsize, relocate, or even enjoy vacations that were once financially impossible.
The sale of your home can allow you to take full advantage of today’s seller’s market, enable you to cash in on the equity your home has built throughout the years, and live a lifestyle relieved of the everyday tasks that come with homeownership.
As the majority of the country currently experiences a seller’s market, a recent study by Edelman Berland reveals that an estimated 33% of homeowners are considering selling their homes in the near future as they plan to scale down. There are several reasons why this might make sense for many homeowners.
A smaller home implies less space; however, it also means less time, stress and money spent on upkeep.
Let’s assume you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1–1.6 million in the bank to get you through your golden years. Use the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed rate mortgage and put at least 10–20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.
You’ve built up enough equity in your current home to make a profit.
For most homeowners, this is the case. Of course, this is only true if the homeowner has held on to their properties for long enough to have positive equity that will be sizable enough to put a large down payment on their next home.
Downsizing can offer you a different lifestyle.
For some folks, it’s a matter of living a simpler life focused on family. Some might want to cross off travel destinations on their bucket lists. Some might want a low-maintenance community with high-end upgrades and social events. Decide what you want to achieve from your move first, and you’ll be able to better narrow down your housing options.
If you are currently considering downsizing your home and want to evaluate your options, I am available to guide you and your family on the best housing opportunities available to you now.
Buyers are searching for homes, but supply is not keeping up with their demand!
There are two types of real estate markets: Buyer’s and seller’s markets.
What does this mean for you?
Selling a home in a seller’s market is very different from selling a home in a buyer’s market. Not only will your days on the market be notably fewer, but you might even receive multiple offers on your home, which could drive up your sales price and get you top dollar on your investment.
It’s an excellent idea to take advantage of restrained home supply since it’s the demand that drives competition. The greater the number of potential buyers for your home, the higher the chances are that you’ll make more money.
Another upside to a seller’s market is that homes that would otherwise be difficult to sell in a buyer’s market stand a greater chance of a sale.
Some homeowners believe that once you stick a “For Sale” sign in the front of your yard, the market takes care of the rest. Although it might be easier to sell in a seller’s market, it still takes a lot more to sell a home than hanging a sign out front. It requires strategy.
Top strategy for selling your home in a seller’s market:
Prepare The Home For Sale
Clean, declutter, and make small repairs on your home from top to bottom. Some buyers will overlook little defects in a seller’s market because there are not enough homes on the market and they don’t have many choices. However, your ultimate goal should be to sell your home for as much as you can. This entails having a clean and decluttered home potential buyers could picture themselves calling home. You’d be surprised the difference a fresh coat of paint can make on value perception.
A Picture’s Worth A Thousand Words
Once you have your home clean and have taken care of small touch-ups and repairs, your next course of action should be to hire a professional stager. The benefits of staging your home far outweigh the costs that come along with it. Not only will your home look great in photographs but often, it will leave a lasting impression on buyers as they view the home.
Lower The Sales Price
If you set the price a bit below the current market value, this effort will attract more buyers. It also will leave some room for buyers to feel more comfortable bidding above the asking price. Be careful when using this strategy, pricing your home too below its market value, will most likely turn away buyers and decrease the amount of market exposure your home receives.
Set a time for offer review
Let the potential buyers know that you will consider all offers on a specified day and time. Don’t make buyers wait longer than necessary or your strategy could backfire, and they might withdraw the offer.
Review Seller’s Market Offers
After all of the offers are received, make notes on each offer so that you are aware of not just the sales price but other factors such as:
- The amount of the earnest money deposit
- Whether the offer is all cash or if finance & the proposed type of financing
- Amount of down payment
- Waiver of standard buyer inspections or contingencies
- Seller costs, including proposal to pay the buyer’s closing costs
- Unusual requests or allowances
- Some buyers will send photographs of themselves, often including their pets or their children. They might write letters to the seller, talking about why they want to buy the home and sharing a bit of personal information.
Buyers are searching for their new home right now! If you are considering selling your home this year, the early months of 2018 will be your best option. Contact me today to capitalize on current market conditions and get top dollar for your home.
During their home sale, every homeowner wants to make sure they receive the best possible price for their home. Here are two key tips to ensure you get just that.
1. Make The Price Right
Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house. Over pricing, a home can not only reduce your home’s market exposure as fewer people will attend your open houses but can also negatively impact your homes online marketing strategy as other comparable homes would be priced at a lower price point. Price your home fairly, and instead of negotiating with one or a handful of buyers on pricing you might find yourself having multiple buyers fighting with each other over your house. One of the biggest assets a home has when on sale is the amount of exposure it receives, don’t hurt your marketing efforts because you didn’t price your home correctly. Partner with your real estate agent or research comparable homes in your neighborhood and choose the best pricing strategy.
2. Use a Real Estate Professional
This may seem counterintuitive. As a seller, you may think that you would be able to net more money if you didn’t have to pay a real estate agent commission. However, studies have shown that homes typically sell for more money when handled by a real estate professional. Why is this? Realtors help people buy and sell homes for a living. They’re experts at negotiation, marketing, and presenting your home to the audience. When it comes to big investments, don’t cut the wrong corners, choose an expert.
Price your house correctly and hire a professional. These two strategies will guarantee you maximize the price you get for your house.
Things have changed drastically in Real Estate. With more than 90% of today’s home buyers beginning their home search online, are you marketing your home in the right places? If you are struggling to sell your home, there are 3 changes you can make to your home selling strategy to get your home off of the market.
Presentation, promotion, and pricing are three strategies that are essential to any home sale.
If after these changes, your home still receives no traction, don’t hesitate to reach out to a real estate professional. The longer a home stays on the market, the less of a chance you’ll have to get the price, visibility, and terms you are looking for.