|Keeping Current Matters nails it with this graphic about pricing your house|
A great article from Keeping Current Matters
If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. Jonathan Smoke, the Chief Economist of realtor.com, in a recent article revealed that:
Smoke goes on to say:
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas
Another great article from Keeping Current Matters!
That number spiked to 2,280,000 by May!
What does this mean to you?
With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring. They are out looking for a home right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition for a buyer.
It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.
“You don’t have to spend a ton of money to increase the value of your home,” says Dan DiClerico, senior editor for Consumer Reports. “Some simple, inexpensive fixes throughout the house can make it more appealing to potential buyers.”
Here are some of the fixes that the Consumer Reports survey of real estate professionals uncovered as being the most important
Cost range: $0 (do-it-yourself) to $2,500 (pro)
Potential return: 3% to 5%
Clear away any clutter and depersonalize the space as much as possible.
2. Makeover the kitchen
Cost range: $300 to $5,000
Potential return: 3% to 7%
The kitchen was rated as the most important room to have in top shape before selling, according to the survey. Real estate professionals recommend focusing on minor repairs that center on the function of the kitchen first, such as repairing leaky faucets, loose light fixtures, or blemishes on the countertop. Then, they recommend small enhancements, such as painting the walls, updating the cabinet hardware, adding new curtains, or light fixtures.
3. Freshen up the bathroom
Cost range: $300 to $1,000
Potential return: 2% to 3%
Make simple improvements, such as caulking the tub or re-grouting the floor or adding new bathroom fixtures to brighten up the space. Updating the mirror and lighting also can have a big impact, the real estate professionals surveyed said.
Cost range: $100 (do-it-yourself) to $1,000 (pro)
Potential return: 1% to 3%
Sixteen percent of the real estate professionals surveyed said that interior painting is an important part in bringing about a sale of a home. But the seller likely doesn’t need the entire house repainted, but maybe just a redo of one or two rooms to curb costs. The two prime candidates for being repainted: Kitchens and bathrooms. Paint in whites and off-whites and a neutral palette – such as grays and beiges — help buyers focus on the home’s features more than be distracted by bright colors, agents note.
5. Exterior touch ups
Cost range: $150 to $7,500
Potential return: 2% to 5%
Agents recommend that their clients concentrate on basic maintenance first, such as to mowing the lawn, trimming overgrown shrubs, and applying a fresh layer of mulch to the garden beds. They also recommend making any minor repairs, such as replacing cracked siding boards or repointing brick walls. The real estate professionals also recommended taking careful note of any repairs needed with the roof: 31 percent of agents surveyed said the roof is one of the most important parts of the home to have in good shape
Source: “Top 5 Ways to Boost the Value of Your Home,” Consumer Reports (Jan. 29, 2015)
Thinking about selling your home? Here a 5 things to do before the for sale sign goes in the front yard.
1. Be proactive and get a pre-inspection. The home inspector will be able to spot areas that stand out to potential buyers as problems. With a pre-inspection, you will be able to make repairs or understand your need to, before the home is on the market.
2. Organize and clean. Get rid of the clutter, pack up your least used items, clothes you are not wearing, toys, and family portraits. Store items off site or in boxes that are neatly stacked in the garage. Clean, clean and clean. Windows, carpets, walls and light fixtures. A fresh coat of paint can work magic.
3. Maximize your curb appeal. Drive by your own house. What do you see? Does your lawn and landscaping look cared for and tidy? Could you use some bright flowers or plants to frame the entrance? Is your front door clean and the entry welcoming?
4. Find your warranties. Get all your manuals, warranties and guarantees for the furnace, appliances and any other items that will remain with the house. Putting them in a basket in the kitchen will give your potential buyer peace of mind.
5. Get replacement estimates. Do you have big ticket items that are worn out? An unusual color of carpet? Get estimates for these items, even if you don’t plan on replacing them. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.
Historically in most real estate markets, the spring is when it really begins to heat up. The spring real estate market generally yields the highest prices for those selling their home. This is only possible though if the proper preparations are taken before spring is upon us!
If you’re thinking of selling your home in the spring, you must know that even though you may receive top dollar for your home, the competition will also be the strongest. This means it’s absolutely critical that you’re prepared for the spring real estate market so you can knock out your competition. Check out these tips so that you’re prepared