Now’s the Time To Upgrade to Your Dream Home
If you’ve been wanting to sell your house and move up to a bigger or nicer home, you’re not alone. A recent Inman survey reveals the top motivator for today’s homebuyers is the desire for more space or an upgraded home (see graph below): But there’s also a good chance you, like many other people, have been holding off on that goal because of recent market challenges. It makes sense – when you’re planning an upgrade that could increase your monthly housing costs, affordability has a huge impact on when you make your move. But there’s good news: now’s actually a great time to make that move happen. Here’s why. You Have a Lot of Equity To Leverage One of the key benefits in today’s market is the amount of equity you’ve likely built up in your current house over the years. Even with recent shifts in the housing market, national home prices have steadily grown, adding to the equity homeowners have today. Selma Hepp, Chief Economist at CoreLogic, explains it well: “Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.” What does that mean for you? If you’ve been in your home for a few years, you’re probably sitting on a significant amount of equity. You can put that toward the down payment on your next home, helping keep the amount you borrow within a comfortable range. This can make upgrading more achievable than you might think. If you’re curious how much you’ve built up over the years, ask your real estate agent for a professional equity assessment. Mortgage Rates Have Fallen, Boosting Your Purchasing Power And there’s another big reason why now’s a great time to make your move: mortgage rates are trending down. Lower rates can help make your future monthly payments more manageable, and they also increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), points out: “When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.” That gives you more flexibility when shopping for homes and may allow you to afford a house at a price point that was previously out of reach. A trusted lender can work with you to figure out the best plan for your budget. Bottom Line If you’re ready to sell your current home and find the bigger, nicer home you’ve been dreaming of, don’t wait. Your equity, paired with lower mortgage rates, puts you in a great position to make that move today. To make the best decisions and get the most out of your current market advantage, work with a trusted real estate professional who can guide you through every step of the homebuying process.
Timelines For selling your Home
In the best circumstances, selling your home isn’t something you do in a rush. It calls for planning and preparation. But if you’re like most homeowners, you probably aren’t sure exactly where to start. Try following these steps: Now 1: Pick a date Assuming you don’t have to get across country for a new job next month, you should first decide when you want to sell. The world is full of advice about the best and worst times to sell. All too often it’s contradictory. Do you listen to the sage advice that says “Don’t list in December – no one buys houses in December!” Or do you trust the counterargument, “But no one lists houses in December – you’ll have the market to yourself!” How about neither? Call me to help you determine which month is the best to list a house, based on analysis of thousands of home sales in your area. So you can, aim to list at your optimum month. Two months before listing 2: Research your local market I can help by giving you some basic comparable properties to look at. Start getting a ballpark price in mind. You can even explore prices to get a feel for your market and target price. Visit some open houses and get ideas for staging and what’s for sale near you. Six weeks before listing 3: Hire an agent If you are hiring me as your real estate agent to handle your listing, start the process now. Let's schedule a meeting to get you comfortable and confident with the sale. Then we can sign a listing agreement and start working out a marketing plan. We will discuss any additional fixes or remodeling work we believe will pay off. 4: Get your house ready Start sprucing your home. Paint (or at least wash) interior and exterior walls or surfaces. Fix any cosmetic or functional items that will turn off potential buyers. Be brutally honest with yourself. This probably isn’t the time to do an extensive kitchen remodel, but if you have cabinets that don’t close or an avocado green dishwasher in an otherwise modern kitchen, fix it. We want to keep the initial interest of buyers that pour when you first come on the market! One month before listing 5: Start moving out – really, start packing Less clutter can make your rooms appear larger and more appealing. If you can, get a storage pod or unit and start packing up, a little at a time. Not only will this help you with the eventual move, but a home that isn’t overloaded with furniture and personal items really shows better. If you’ve been using rooms for storage, time to move the storage offsite. Donate everything you can that you aren't using. Pack up as many personal items as you can. Those wedding pictures on the wall may look great but potential buyers will want to envision their own wedding pictures up there, not yours. Talk with your neighbors about your plans. Not only is it nice to give them a heads up that you’re leaving, but they can help market the property. They may have friends looking for a house who already love your neighborhood. 2 to 3 weeks before listing 6: Check your financial picture Get the loan payout information for your mortgage and review it. You’re going to need to know how much you owe so you can figure out what your sales proceeds will be – or if you are going to be doing a short sale in which the sales price won’t satisfy the mortgage. Clear up any liens on the property and review your findings with your mortgage representative. 7: Keep cleaning and de-cluttering I will probably have advice on staging. If not, remember you want it to look as much like a model home as possible. Remove personal items. Make sure furniture makes sense for the space. You don’t want potential buyers looking at a room and trying to figure out a function for it. At least ONE week before listing 8: Lights, camera… marketing Once you’ve got the house looking its best, time for pictures. As your agent, I will likely take pictures or hire a real estate photographer to do it. We will consider making a video walk-through to post with the listing. Be picky. No clutter should be visible. Toilet seats down. Shades should be open to let in as much flattering and bright natural light as possible. These are your home’s glamour shots. You want them to look good enough to give you second thoughts about moving. But don’t Photoshop away any cosmetic issues. Buyers will be annoyed by the bait and switch. I will work with you to help create an engaging, accurate and upbeat description of your home. Think about what made you fall in love with it when you bought it or after making it your home. We can make a Coming Soon announcement and post a description of your home at any time, even if it isn’t for sale yet. On Listing Day and Beyond! 9: Go live I make sure we get your home listed on the major online sites. We will also put up a sign outside, make flyers with photos and description the reflect the MLS info. 10: Live each day in a perpetual state of clean No matter how many ways you say you need a few hours’ notice before a buyer’s agent brings potential buyers, someone will call on the way to your home, or even from your driveway. Be ready to clear out fast, leaving a sparkling home. Every bed must be made every morning. Even if you don’t have a showing scheduled, you have to assume a buyer will come by every time you leave the house. (Of course the surest way to get a buyer to come by is to leave a dirty sock on the floor.) 11: Watch the offers roll in. Or not My job is to give you feedback after every showing and open house. If you aren’t getting a lot of showings and it’s a hot market, a price adjustment may be in order. Remember, in any market, the sooner you sell, the higher the price you’re likely to get. So in your early market days, you want to be responsive to what the market has to say. Call or Tex me @ 832.894.8788
The Real Story Behind What’s Happening with Home Prices
If you’re wondering what’s going on with home prices lately, you’re definitely not the only one. With so much information out there, it can be hard to figure out your next move. As a buyer, you might be worried about paying more than you should. And if you’re thinking of selling, you might be concerned about not getting the price you’re aiming for. So, here’s a quick breakdown to help clear things up and show you what’s really happening with prices—whether you’re thinking about buying or selling. Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally Throughout the country, home price appreciation is moderating. What that means is, prices are still going up, but they’re not rising as quickly as they were in recent years. The graph below uses data from Case-Shiller to make the shift from 2023 to 2024 clear: But rest assured, this doesn’t mean home prices are falling. In fact, all the bars in this graph show price growth. So, while you might hear talk of prices cooling, what that really means is they’re not climbing as fast as they were when they skyrocketed just a few years ago. What’s Next for Home Prices? It’s All About Supply and Demand You might be curious where prices will go from here. The answer depends on supply and demand, and it’s going to vary by local market. Nationally, the number of homes for sale is going up, but there still aren’t enough of them to meet today’s buyer demand. That’s keeping upward pressure on prices – even though recent inventory growth has caused that home price appreciation to slow. Danielle Hale, Chief Economist at Realtor.com, said: “. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.” And here’s one other thing you may not have considered that could play a role in where prices go from here. Since experts say mortgage rates should continue to decline, it’s likely more buyers will re-enter the market in the months ahead. If demand picks back up, that could make prices climb a bit further. Why You Should Work with a Local Real Estate Agent While national trends give a big-picture view, real estate is always local – especially when it comes to prices. What’s happening in your neighborhood might be different from the national average based on what supply and demand look like in your market. That’s why it’s crucial to get local insights from a knowledgeable real estate agent. As your go-to source for everything related to home prices, a local agent can provide the most current data and trends specific to your area. So, if you’re planning to sell, they can help you price your house accurately. And when you’re ready to buy, they can find the right home that fits your budget and your needs. Bottom Line Home prices are still rising, just not as quickly as before. Whether you’re thinking about buying, selling, or just curious about what your house is worth, connect with a local real estate agent today to get the personalized guidance you need
Categories
Recent Posts
