Portland Real Estate BlogRecently posted or modified blog posts in the category - Selling Your Homehttps://www.hillshirerealtygroup.com/blog/Copyright HillshireRealtyGroup.com2024-03-14T08:59:17-07:00tag:hillshirerealtygroup.com,2012-09-20:11115Why Today’s Seller’s Market Is Good for Your Bottom Line
Thinking about <a href="https://www.mykcm.com/2024/03/06/why-access-is-so-important-when-selling-your-house/" rel="noopener noreferrer" target="_blank">selling your house</a> and wondering if now’s a good time to do it? Here’s what you need to know. Even though the number of <a href="https://www.mykcm.com/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">homes for sale</a> has been growing this year, there still aren’t enough homes on the market for all the buyers who want to buy.
So, what does that mean for you? To keep it simple, it means it’s still a seller’s market. Here’s how it works:
A neutral market is when supply and demand is balanced. Basically, there are enough homes to meet buyer demand based on the current sales pace, and home prices hold fairly steady.
A buyer’s market is when there are more homes for sale than there are buyers. When that happens, buyers have more negotiation power because sellers are willing to make compromises to close the deal. In a buyer’s market, sellers may have to do price cuts to re-ignite interest in their home, and prices may go down. But we haven’t seen this for years since there are so few homes available to buy.
In a seller’s market, it’s just the opposite. When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final sale price of your house up.
The graph below uses <a href="https://www.nar.realtor/newsroom/existing-home-sales-rose-3-1-in-january" rel="noopener noreferrer" target="_blank">data</a> from the National Association of Realtors to show just how deep into seller’s market territory we still are today:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240313/20240314-Months-Inventory-of-Homes-for-Sale.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240313/20240314-Months-Inventory-of-Homes-for-Sale.png" alt="a screenshot of a chart" /></a>
What Does This Mean for You?
The market is still working in your favor. If you lean on <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">an agent</a> for advice on how to get your house <a href="https://www.mykcm.com/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/" rel="noopener noreferrer" target="_blank">list ready</a> and how to price it competitively, it should get a lot of attention from eager buyers. That means you’ll likely get multiple offers and see your house <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">sell quickly</a> and for top dollar. As a recent article from Ramsey Solutions <a href="https://www.ramseysolutions.com/real-estate/housing-market-forecast" rel="noopener noreferrer" target="_blank">explains</a>:
“A seller’s market is when demand for homes is higher than the supply of homes. And that’s still the case right now. If you’re planning to sell your house, you can expect to sell it fairly quickly for close to your asking price—as long as your asking price is realistic for the current market.”
Bottom Line
Today’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.
2024-03-14T08:58:31-07:002024-03-14T08:59:17-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10858It’s Time To Prepare Your House for a Spring Listing
If you're thinking of <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">selling</a> your house this spring, now is the perfect <a href="https://www.mykcm.com/2024/02/01/dont-wait-until-spring-to-sell-your-house/" rel="noopener noreferrer" target="_blank">time</a> to start getting it ready. With the market gearing up for its busiest time of year, it'll be important to make sure your house shines bright among the competition.
Here are some valuable tips you can use to get your house <a href="https://www.mykcm.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">market-ready</a>.
Declutter and Organize
First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it's about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. <a href="https://www.moving.com/tips/how-to-declutter-your-home-before-moving/" rel="noopener noreferrer" target="_blank">According</a> to Moving.com:
“Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”
Deep Clean Your Kitchen and Bathrooms
The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.
Maintain Your Yard
Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.
Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/easy-ways-to-add-curb-appeal-to-your-home-this-fall" rel="noopener noreferrer" target="_blank">says</a>:
“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”
Find a Listing Agent
A skilled <a href="https://www.mykcm.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">listing agent</a> is your partner in minimizing <a href="https://www.mykcm.com/2024/01/02/things-to-consider-if-your-house-didnt-sell/" rel="noopener noreferrer" target="_blank">stress</a> when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home's appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-should-i-expect-from-my-realtor/" rel="noopener noreferrer" target="_blank">says</a>:
“A good listing agent will help you price your home . . . recommend a photographer and stager to make it look its best, and put your home on the multiple listing service.”
Bottom Line
By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful <a href="https://www.mykcm.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">sale</a>. Let’s connect on what you need to do to get your house ready to sell this spring.
2024-02-20T09:53:37-07:002024-02-20T09:54:58-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10752Home Equity Can Be a Game Changer When You Sell
Are you on the fence about <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">selling your house</a>? While <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">affordability</a> is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate <a href="https://www.bankrate.com/home-equity/what-is-home-equity/" rel="noopener noreferrer" target="_blank">explains</a>:
“Home equity is the difference between your home's value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.
You'll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You'll also build equity over time as your home's value increases.”
Think of equity as a simple math equation. It's the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.
In the past few years, <a href="https://www.mykcm.com/2024/01/23/experts-project-home-prices-will-increase-in-2024/" rel="noopener noreferrer" target="_blank">home prices</a> skyrocketed, which means your home's value – and your equity – likely shot up, too. So, you may have more equity than you realize.
How To Make the Most of Your Home Equity Right Now
If you're thinking about moving, the equity you have in your home could be a big help. <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2023/" rel="noopener noreferrer" target="_blank">According</a> to CoreLogic:
“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”
Clearly, homeowners have a lot of equity right now. And the latest data from the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attoms-q4-2023-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a> shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240208/20240208-Americans-Sitting-on-Tremendous-Equity-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240208/20240208-Americans-Sitting-on-Tremendous-Equity-1.png" /></a>
That means roughly 70% have a tremendous amount of equity right now.
After you <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use your equity to <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">help you buy</a> your next home. Here’s how:
Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071114/should-you-pay-all-cash-your-next-home.asp" rel="noopener noreferrer" target="_blank">states</a>:
“You may want to pay cash for your home if you're shopping in a competitive housing market, or if you'd like to save money on mortgage interest. It could help you close a deal and beat out other buyers.”
Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports <a href="https://themortgagereports.com/18520/20-percent-downpayment-risk-mortgage-interest-rate" rel="noopener noreferrer" target="_blank">explains</a>:
“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”
The Easy Way To Find Out How Much Equity You Have
To find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR).
Bottom Line
<a href="https://www.mykcm.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">Planning a move</a>? Your home equity can really help you out. Let’s connect to see how much equity you have and how it can help with your <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">next home</a>.
2024-02-08T09:27:05-07:002024-02-08T09:32:25-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10687Don’t Wait Until Spring To Sell Your House
As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here's why.
1. Take Advantage of Lower Mortgage Rates
Last October, the 30-year fixed <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">mortgage rates</a> peaked at 7.79%. In January, they hit their <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">lowest level</a> since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">more affordable</a> now than it was just a few months ago.
Another reason today’s rates make now a good time to sell? More buyers are jumping back into the market. Many had been waiting on the sidelines for rates to fall, but now that that’s happening, they’re eager and ready to buy. That means more demand for your house. <a href="https://freddiemac.gcs-web.com/node/28286/pdf" rel="noopener noreferrer" target="_blank">According</a> to Sam Khater, Chief Economist at Freddie Mac:
“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market.”
2. Get Ahead of Your Competition
Right now, there are still more people looking to buy a home than there are houses for sale, which puts you in a great position. But keep in mind, with the recent uptick in <a href="https://www.mykcm.com/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/" rel="noopener noreferrer" target="_blank">new listings</a>, we’re seeing more sellers may already be re-entering the market.
<a href="https://www.mykcm.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">Listing your house</a> now helps you beat your competition and makes sure your house will stand out. And if you work with an agent to price it right, it could sell fast and get multiple offers. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/understanding-housing-inventory-and-what-it-means-for-you" rel="noopener noreferrer" target="_blank">explains</a>:
“When there is low housing inventory, sellers could get top dollar for their homes.”
3. Make the Most of Rising Home Prices
<a href="https://www.mykcm.com/2024/01/23/experts-project-home-prices-will-increase-in-2024/" rel="noopener noreferrer" target="_blank">Experts forecast</a> home prices will keep <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">going up</a> this year. What does that mean for you? If you're ready to sell your current house and plan to buy another one, it may be a good idea to think about moving now before prices go up more. That would give you the chance to buy your next home before it gets more expensive.
4. Leverage Your Equity
Homeowners today have tremendous amounts of <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">equity</a>. In fact, a recent <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2023/" rel="noopener noreferrer" target="_blank">report</a> from CoreLogic says the average homeowner with a mortgage has more than $300,000 in equity.
If you've been waiting to sell because you were worried about home affordability, know your equity can really help with your next move. It might even cover a big part, or maybe all, of the down payment for your next home.
Bottom Line
If you're thinking about <a href="https://www.mykcm.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">selling your house</a> and moving to another one, let’s connect to get the process started now so you can get a leg up on your competition.
2024-02-01T09:36:34-07:002024-02-01T09:38:58-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:106403 Must-Do’s When Selling Your House in 2024
If one of the goals on your list is <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">selling your house</a> and <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">making a move</a> this year, you’re likely juggling a mix of excitement about what’s ahead and feeling a little sentimental about your current home.
A great way to balance those emotions and make sure you’re confident in your decision is to keep these three best practices in mind when you’re <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">ready to sell</a>.
1. Price Your Home Right
The <a href="https://www.mykcm.com/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/" rel="noopener noreferrer" target="_blank">housing market</a> shifted in 2023 as <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">mortgage rates</a> rose and <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">home price appreciation</a> started to <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">normalize</a> once again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today. Hannah Jones, Economic Research Analyst for Realtor.com, <a href="https://www.realtor.com/news/trends/home-seller-alert-weve-found-the-very-best-week-to-list-your-home-in-2023/" rel="noopener noreferrer" target="_blank">explains</a>:
“Sellers need to become familiar with their local market and work closely with a local agent to make sure their listing is attractive to buyers. Buyers feeling the pressure of affordability are likely to be pickier, so a well-priced, well-maintained home is the ticket to drumming up big demand.”
If you price your house too high, you run the risk of deterring <a href="https://www.mykcm.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">buyers</a>. And if you go too low, you’re leaving money on the table. An experienced <a href="https://www.mykcm.com/2023/12/21/sell-smarter-why-working-with-a-real-estate-agent-may-beat-going-solo/" rel="noopener noreferrer" target="_blank">real estate agent</a> can help determine what your ideal asking price should be, so your house moves quickly and for top dollar.
2. Keep Your Emotions in Check
Today, homeowners are staying in their houses <a href="https://www.mykcm.com/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/" rel="noopener noreferrer" target="_blank">longer</a> than they used to. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR), since 1985, the average time a homeowner has owned their home has increased from 6 to 10 years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" /></a>
This is much more than what used to be the norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even tougher to separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations and the best pricing strategy along the way. Trust the professionals who have your best interests in mind.
3. Stage Your Home Properly
While you may love your decor and how you’ve customized your house over the years, not all buyers will feel the same way about your vibe. That’s why it’s so important to make sure you focus on your home’s first impression, so it appeals to as many buyers as possible.
Buyers want to be able to picture themselves in the home. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. As Jessica Lautz, Deputy Chief Economist and Vice President of Research at NAR, <a href="https://www.nar.realtor/newsroom/nearly-half-of-sellers-agents-said-staging-a-home-reduced-its-time-on-market-nar-report-finds" rel="noopener noreferrer" target="_blank">says</a>:
“Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.”
A real estate professional can help you with expertise on getting your house <a href="https://www.mykcm.com/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/" rel="noopener noreferrer" target="_blank">ready to sell</a>.
Bottom Line
If you’re considering selling your house, let’s connect so you have help navigating the process while prioritizing these must-do’s.
2024-01-23T09:40:01-07:002024-01-23T09:41:56-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10520Things To Consider If Your House Didn’t Sell
If your listing has expired and your house didn’t sell, it's completely normal to feel a mix of frustration and disappointment. Understandably, you're probably wondering what may have gone wrong. Here are three questions to think about as you figure out what to <a href="https://www.mykcm.com/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/" rel="noopener noreferrer" target="_blank">do next</a>.
Did You Limit Access to Your House?
One of the biggest mistakes you can make when selling your house is restricting the days and times when potential buyers can tour it. Being flexible with your schedule is important, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime <a href="https://showingtimeplus.com/resources/blog/6-reasons-your-house-isnt-getting-showings-and-how-to-fix-it" rel="noopener noreferrer" target="_blank">advises</a>:
“. . . do your best to be as flexible as possible when granting access to your house for showings.”
Sometimes, the most <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">determined buyers</a> might come from far away. Since they’re traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It's simple – if no one’s able to look at it, how will it sell?
Did You Make Your House Stand Out?
When you're selling your house, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to boost your home’s curb appeal so you can make an impact upfront. As an article from U.S. News <a href="https://realestate.usnews.com/real-estate/articles/how-to-sell-your-home-while-living-in-it" rel="noopener noreferrer" target="_blank">says</a>:
“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Plus, a fresh coat of paint or thorough floor cleaning can work wonders in sprucing up the house for potential buyers.
Did You Price Your House at Market Value?
Setting the right price is key. While it might be tempting to push the price higher to maximize your profit, <a href="https://www.mykcm.com/2023/12/14/if-your-house-hasnt-sold-yet-it-may-be-overpriced/" rel="noopener noreferrer" target="_blank">overpricing your house</a> can actually turn off potential buyers and slow down the selling process. Forbes <a href="https://www.forbes.com/sites/brendarichardson/2023/03/01/recent-home-sellers-are-feeling-remorse-over-pricing-timing-or-marketing-of-their-home-new-survey-finds/?sh=2be46552317d" rel="noopener noreferrer" target="_blank">notes</a>:
“Pricing a home too high could lead to a slower sale or force the seller to drop their price.”
If your house is priced higher than others like it, it may discourage buyers, resulting in increased time on the market. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">real estate agent</a>. A great agent will offer expert advice on relisting your house with effective strategies to get it sold.
Bottom Line
It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Let’s connect to determine what happened, and what changes you should make to get <a href="https://www.mykcm.com/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/" rel="noopener noreferrer" target="_blank">your house</a> back on the market.
2024-01-02T10:43:05-07:002024-01-02T10:44:25-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10388When You Sell Your House, Where Do You Plan To Go?
If you’re thinking about selling your house, you may have heard the <a href="https://www.mykcm.com/2023/11/21/are-there-actually-more-homes-for-sale-right-now/" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is still low, and that means your house should stand out to buyers who are <a href="https://www.mykcm.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">craving more options</a>. But you may also be wondering, once you sell, how does the current supply impact your own move? And, will you be able to find a home you want to buy with inventory this low?
One thing that can help you find your next home is exploring all your options, including both homes that have been lived in before as well as newly built ones. Let’s look at the benefits of each one.
The Pros of Newly Built Homes
First, let’s look at the advantages of purchasing a newly constructed home. With a brand-new home, you’ll be able to:
Create your perfect home. If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more.
Cash-in on energy efficiency. When building a home, you can choose energy-efficient options to help lower your utility costs and reduce your carbon footprint.
Minimize the need for repairs. Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little projects to tackle.
Have brand new everything. Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
The Pros of Existing Homes
Now, let’s compare that to the perks that come with buying an existing home. With a pre-existing home, you can:
Explore a wider variety of home styles and floorplans. With decades of homes to choose from, you’ll have a broader range of floorplans and designs available.
Join an established neighborhood. Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit.
Enjoy mature trees and landscaping. Established neighborhoods also have more developed landscaping and trees, which can give you additional privacy and curb appeal.
Appreciate that lived-in charm. The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.
The choice is yours. When you start your search for the perfect home, remember that you can go either route – you just need to decide which features and benefits are most important to you. As an article from The Mortgage Reports <a href="https://themortgagereports.com/107938/new-home-construction-process" rel="noopener noreferrer" target="_blank">says</a>:
“When building, you gain more freedom to tailor the design, materials, and features, but it demands more time and involvement. Conversely, buying an established home offers immediate occupancy . . . yet may require compromises. Your choice should align with your budget, timeline, customization preferences, and the local real estate landscape.”
Either way, working with a local <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a> throughout the process is mission-critical to your success. They'll help you explore all of your options based on what matters most to you in your next home. Together, you can find the home that’s right for you.
Bottom Line
If you have questions about the options in our area, let’s discuss what's available and what's right for you. That way you’ll be ready to make your next move with confidence.
2023-12-05T10:26:22-07:002023-12-05T10:29:45-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10294The Benefits of EXP Express Offers 2023-11-14T11:06:08-07:002023-11-14T12:05:56-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10060Why Your House Didn’t Sell<img src="https://files.keepingcurrentmatters.com/content/images/20230927/20230928-Why-your-house-didn-t-sell.png" />
Why Your House Didn’t Sell
If your listing expired and your house didn’t <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">sell</a>, you’re likely feeling a little frustrated. Not to mention, you're also probably wondering what went wrong. Here are three questions to think about as you figure out what to do next.
Did You Limit Access to Your House?
One of the biggest mistakes you can make when <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">selling your house</a> is restricting the days and times when <a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">potential buyers</a> can tour it. Being flexible with your schedule is important when you're selling your house, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime <a href="https://www.showingtime.com/blog/6-reasons-your-house-isnt-getting-showings-and-how-to-fix-it/" rel="noopener noreferrer" target="_blank">advises</a>:
“. . . do your best to be as flexible as possible when granting access to your house for showings.”
Sometimes, the most determined <a href="https://www.mykcm.com/2023/09/20/remote-work-is-changing-how-some-buyers-search-for-their-dream-homes/" rel="noopener noreferrer" target="_blank">buyers</a> might come from far away. Since they're traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple. If no one’s able to look at it, how’s it going to sell?
Did You Make Your House Stand Out?
When <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">selling your house</a>, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. As an article from U.S. News <a href="https://realestate.usnews.com/real-estate/articles/how-to-sell-your-home-while-living-in-it" rel="noopener noreferrer" target="_blank">says</a>:
“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.
Did You Price Your House Compellingly?
Setting the <a href="https://www.mykcm.com/2023/07/31/pricing-your-house-right-still-matters-today/" rel="noopener noreferrer" target="_blank">right price</a> is extremely important when you're selling your house. Even though it might feel tempting to push the price higher to maximize your profit, overpricing can scare away buyers and make it hard to sell quickly. Business Insider <a href="https://www.businessinsider.com/mistakes-people-make-trying-to-sell-home-real-estate-agents-tips-2019-5" rel="noopener noreferrer" target="_blank">notes</a>:
“. . . the biggest mistake sellers make is overpricing their home.”
If your house is priced higher than others like it, it could make buyers lose interest. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it <a href="https://www.mykcm.com/2023/08/24/more-jobs-and-better-pay-leads-to-more-buyer-demand/" rel="noopener noreferrer" target="_blank">sold</a>.
Bottom Line
It’s natural to feel disappointed when your listing has expired and your house didn’t <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">sell</a>. Let’s connect to figure out what happened and what to reconsider or change if you want to get your house back on the market.
2023-09-28T13:57:43-07:002023-09-28T14:01:59-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:10010Your Home Equity Can Offset Affordability Challenges<img src="https://files.keepingcurrentmatters.com/content/images/20230914/20230919-Your-Home-Equity-Can-Offset-Affordability-Challenges.png" />
Your Home Equity Can Offset Affordability Challenges
Are you thinking about <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, today’s <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> may be making you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is <a href="https://www.mykcm.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/" rel="noopener noreferrer" target="_blank">home equity</a>. Here’s what you need to know.
Bankrate <a href="https://www.bankrate.com/home-equity/reasons-to-use-home-equity/" rel="noopener noreferrer" target="_blank">explains</a> exactly what equity is and how it grows:
“Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.”
In other words, equity is how much your home is worth now, minus what you still owe on your home loan.
How Much Equity Do Homeowners Have Now?
Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . the average U.S. homeowner now has about $290,000 in equity.”
That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, there are still more people wanting to <a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">buy homes</a> than there are homes available <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">for sale</a>. This high demand is causing <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home prices</a> to go up again.
According to the <a href="https://www.fhfa.gov/Media/Blog/Pages/Homeowners-Equity-Remains-High.aspx" rel="noopener noreferrer" target="_blank">Federal Housing Finance Agency</a> (FHFA), the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a>, and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below):
<a href="https://www.mykcm.com/content/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means nearly 70% of homeowners have a tremendous amount of equity right now.
How Equity Helps with Your Affordability Concerns
With today’s affordability challenges, your equity can make a big difference when you decide to move. After you <a href="https://www.mykcm.com/2023/09/13/should-baby-boomers-buy-or-rent-after-selling-their-houses/" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use the equity you've built up in your home to help you buy your next one. Here’s how:
Be an all-cash buyer: If you've been living in your current home for a long time, you might have enough equity to buy a new house without having to take out a loan. If that's the case, you won't need to borrow any money or worry about mortgage rates. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/cash-rules" rel="noopener noreferrer" target="_blank">states</a>:
“These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .”
Make a larger down payment: Your <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">equity</a> could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won't have to borrow as much money so today’s rates become less of a sticking point. Experian <a href="https://www.experian.com/blogs/ask-experian/does-your-down-payment-affects-your-mortgage/" rel="noopener noreferrer" target="_blank">explains</a>:
“Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.”
Bottom Line
If you're thinking about <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">moving</a>, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current house and how you can use it for your next home, let’s connect.
2023-09-19T13:10:44-07:002023-09-19T13:16:09-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9909Why You May Still Want To Sell Your House After All<img src="https://files.keepingcurrentmatters.com/content/images/20230817/20230822-Why-You-May-Still-Want-To-Sell-Your-House-After-All.jpg" />
Why You May Still Want To Sell Your House After All
Even though you may feel reluctant to <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">sell your house</a> because you don’t want to take on a <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rate</a> that’s higher than the one you have now, there’s more to consider. While the financial side of things does matter, your personal needs may actually matter just as much. As an article from <a href="https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/#sell-now" rel="noopener noreferrer" target="_blank">Bankrate</a> says:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market.”
So, ask yourself this: why did I want to move in the first place?
Chances are your primary motivation wasn’t just financial in nature. Why you’re really thinking about <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">selling</a> likely has more to do with something changing in your life or a shift in what you need out of your house.
Reasons Homeowners Still Need To Sell Today
Let’s explore some of the most common reasons sellers are <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">moving</a> today. A recent <a href="https://www.builderonline.com/data-analysis/whats-behind-this-years-high-sales-volume-despite-the-lock-in-effect_o" rel="noopener noreferrer" target="_blank">article</a> from Builder Online helps shed light on this. In this research, they identified the following categories:
Marriage – If you just got married, you may find you either need more space than you currently have, or the two of you want to find a new place you picked out together.
Divorce – If you’re getting separated or are divorcing your partner, chances are it’ll be difficult to live under the same roof. Selling the place you have, so you can own get your own spot, may be necessary.
Births – If your household is growing, you may need more square footage, including more bedrooms. If you’re running out of room for everyone, you may not be able to wait to move.
Deaths – If you’ve recently lost a loved one, it can be hard to spend time in that home. You may need to move for financial reasons or because you no longer need all the space.
Retirement – If you’re in the process of retiring, or you just did, you may be looking to downsize to cut costs, relocate to be closer to loved ones, or move to a dream location. In this new phase of life, your current home may not be able to deliver what you need.
You may find you share one of these top motivators. If any of these resonate with you, it may be <a href="https://www.mykcm.com/2023/08/10/about-11000-houses-will-sell-today/" rel="noopener noreferrer" target="_blank">time to move</a> so you can find a house better suited to your changing needs. A survey from Realtor.com finds other sellers are in the same boat. It <a href="https://mediaroom.realtor.com/2023-04-17-Realtor-com-R-Survey-82-of-Those-Looking-to-Buy-and-Sell-a-Home-Feel-Locked-In-by-Low-Mortgage-Rate" rel="noopener noreferrer" target="_blank">says</a>, 1 in 4 sellers are choosing to move for personal reasons, even with current <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>:
“. . . more than half of seller-buyers (56%) who are planning to sell in the next 12 months said they are waiting for rates to come down, while 25% need to sell soon for personal reasons.”
If you need to sell now because something in your own life has changed, don’t let rates hold you back from what you want. You have options to help make that move possible. You can use the <a href="https://www.mykcm.com/2023/08/07/four-ways-you-can-use-your-home-equity/" rel="noopener noreferrer" target="_blank">equity</a> you already have in your current home toward your next purchase. And with <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">how much</a> equity homeowners have right now, you may be able to finance less than you’d expect, or pay all cash to avoid borrowing at all.
Bottom Line
When you're ready to prioritize your changing needs, let’s connect. You need an expert on your side to help you list your house and find a home that delivers on everything you're looking for.
2023-08-29T12:28:50-07:002023-08-29T12:31:53-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9845Equity Is a Game Changer for Homeowners Looking To Sell<img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Equity-is-a-game-changer-for-homeowners-looking-to-sell.jpg" />
Equity Is a Game Changer for Homeowners Looking To Sell
If you’re a homeowner, you might be torn on whether or not to <a href="https://www.mykcm.com/2023/07/31/pricing-your-house-right-still-matters-today/" rel="noopener noreferrer" target="_blank">sell your house</a> right now. Maybe that’s because you don’t want to take on a higher <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rate</a> on your next home. If that’s your <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">biggest hurdle</a>, understanding your equity may be exactly what you need to help you feel more comfortable making your move.
What Equity Is and How It Works
Equity is the current value of your home minus what you owe on the loan. And recently, that <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank">equity</a> has been growing far faster than you may expect.
Over the last few years, home prices rose dramatically, and that gave your equity a big boost very quickly. While the market has <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">started to normalize</a>, there’s still an imbalance between the <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale and the <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">number of buyers</a> looking to make a purchase. And it’s because homes are in such high demand that <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">prices</a> are back on the rise today. Rob Barber, CEO of ATTOM, a property data provider, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">explains</a>:
“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”
How Equity Benefits You in Today’s Market
With today’s <a href="https://www.mykcm.com/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/" rel="noopener noreferrer" target="_blank">affordability challenges</a>, that equity can be a game changer when you move. Here’s why. Based on data from <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a> and the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a>, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (see chart below):<a href="https://www.mykcm.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means roughly 70% have a tremendous amount of equity right now.
Once you <a href="https://www.mykcm.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use your equity to help with your next purchase. It could be some (if not all) of what you’ll need for your next down payment. It may even be enough to allow you to put a considerably larger down payment on your next home, so you don’t have to finance quite as much. And, if you’ve been in your current house for years, you may have even built up enough equity to pay in all cash. If that’s true for you, you’d be able to avoid borrowing altogether, so you wouldn’t have to worry about today’s <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
How To Find Out How Much Equity You Have
The best way to learn how much you have is to reach out to a trusted real estate agent for a Professional Equity Assessment Report (PEAR).
Bottom Line
If you’re planning to <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">make a move</a>, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.
<a href="https://www.mykcm.com/blog" class="router-link-active"><br /></a>2023-08-15T12:20:50-07:002023-08-15T12:26:03-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9829About 11,000 Houses Will Sell Today<img src="https://files.keepingcurrentmatters.com/content/images/20230807/20230810-About-11000-houses-will-sell-today.jpg" />
Some homeowners have been waiting for months to put their <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">house</a> on the market because they don’t think people are <a href="https://www.mykcm.com/2023/07/18/homebuyers-are-getting-used-to-the-new-normal/" rel="noopener noreferrer" target="_blank">buying</a> homes right now. If that’s you, know that even though the housing market has slowed compared to the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">frenzy</a> of a couple of years ago, it isn’t at a standstill. Contrary to what you may believe, buyers are still active and plenty of homes are selling right now.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR), based on the pace of sales right now, just over 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
4.16 million homes divided by 365 days in a year = 11,397 houses sell each day
11,397 divided by 24 hours in a day = 475 houses sell per hour
475 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, about 11,000 homes sell each day in this country.
A real estate expert can give you more information about how many houses are being sold in your neighborhood, the amazing <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">advantages</a> that sellers are experiencing right now, and the most important things buyers are searching for in your area. Together you’ll use this knowledge to shape how you market your house based on local trends.
Bottom Line
If you’ve been waiting to sell because you don’t think there are buyers out there, know today’s market is <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">active</a>. Every day you wait, around 11,000 other homeowners are <a href="https://www.mykcm.com/2023/07/12/renting-or-selling-your-house-whats-the-best-move/" rel="noopener noreferrer" target="_blank">selling</a>. In the time it took you to read this, eight homes sold. When you’re ready to sell too, let’s connect.
2023-08-10T13:12:50-07:002023-08-10T13:18:00-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9817There's Only Half the Inventory of a Normal Housing Market Today<img src="https://files.keepingcurrentmatters.com/content/images/20230807/20230808-Theres-Only-Half-the-Inventory-of-a-Normal-Housing-Market-Today.jpg" />
There's Only Half the Inventory of a Normal Housing Market Today
Wondering if it still makes sense to <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">sell your house</a> right now? The short answer is, yes. Especially if you consider how few homes there are for sale today.
You may have heard <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> is low right now, but you may not fully realize just how low or why that’s a perk when you go to sell your house. This graph from <a href="https://www.calculatedriskblog.com/2023/08/housing-august-7th-weekly-update.html" rel="noopener noreferrer" target="_blank">Calculated Risk</a> can help put that into perspective:
<a href="https://www.mykcm.com/content/images/20230807/20230808-Inventory-Is-Still-Historically-Low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230807/20230808-Inventory-Is-Still-Historically-Low.png" /></a>As the graph shows, while <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">housing inventory</a> did grow slightly week-over-week (shown in the blue bar), overall supply is still low (shown in the red bars). Compared to the same week last year, supply is down roughly 10% – and it was already considered low at that time. But, if you look further back, you’ll see inventory is down even more significantly.
To gauge just how far off from normal today’s inventory is, let’s compare right now to 2019 (the last normal year in the market). When you compare the same week this year with the matching week in 2019, supply is about 50% lower. That means there are half the homes for sale now than there’d usually be.
The key takeaway? We’re still nowhere near what’s considered a balanced market. There’s plenty of <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">demand</a> for your house because there just aren’t enough homes to go around. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">explains</a>:
“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
So, if you want to <a href="https://www.mykcm.com/2023/07/12/renting-or-selling-your-house-whats-the-best-move/" rel="noopener noreferrer" target="_blank">list your house</a>, know that there’s only about half the inventory there’d usually be in a more normal year. That means your house will be in the spotlight if you <a href="https://www.mykcm.com/2023/07/31/pricing-your-house-right-still-matters-today/" rel="noopener noreferrer" target="_blank">sell now</a> and you may see multiple offers and a fast home sale.
Bottom Line
With the number of homes for sale roughly half of what there’d usually be in a more normal year, you can rest assured there’s demand for your house. If you want to sell, let’s connect now so your house can shine above the rest while inventory is so low.
2023-08-08T12:06:10-07:002023-08-08T12:12:19-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9631Today’s Housing Inventory Is a Sweet Spot for Sellers<img src="https://files.keepingcurrentmatters.com/content/images/20230705/20230706-todays-housing-inventory-is-a-sweet-spot-for-sellers.jpg" />
Today’s Housing Inventory Is a Sweet Spot for Sellers
One of the biggest challenges in the housing market right now is how <a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank">few homes</a> there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.
According to a recent report from <a href="https://news.move.com/2023-06-29-Realtor-com-R-June-Housing-Report-Home-Prices-Post-Their-First-Annual-Decline-Since-Before-2017" rel="noopener noreferrer" target="_blank">Realtor.com</a>:
“On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”
The <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">graph</a> below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):
<a href="https://www.mykcm.com/content/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" /></a>
It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">abnormal years</a> for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.
When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.
What Does This Mean for You?
If you’re thinking about <a href="https://www.mykcm.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank">selling your house</a>, that low inventory is why this is a <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank">great time</a> to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-05-realtors-confidence-index-06-22-2023.pdf" rel="noopener noreferrer" target="_blank">Confidence Index</a> from the National Association of Realtors (NAR):
The percent of homes that sold in less than a month ticked up slightly to 74%.
The median days on market went down to 18 days, showing homes are still selling fast when priced right.
The average number of offers on recently sold homes went up to 3.3 offers.
Bottom Line
When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">selling</a>, now’s the time to <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank">make a move</a>. Let’s connect to get the process started.
2023-07-06T12:53:02-07:002023-07-06T12:57:25-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9604Where Will You Go If You Sell? Newly Built Homes Might Be the Answer.<img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230629-where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer.jpg" />
Where Will You Go If You Sell? Newly Built Homes Might Be the Answer.
Do you want to <a href="https://www.mykcm.com/2023/06/15/why-buying-or-selling-a-home-helps-the-economy-and-your-community/" rel="noopener noreferrer" target="_blank">sell</a> your house, but hesitate because you’re worried you won’t be able to find your next home in today’s market? You're not alone, but there’s some good news that may ease your worries. New home construction is up and is becoming an increasingly significant part of the housing inventory.
That means when you go to put your <a href="https://www.mykcm.com/2023/06/21/eco-friendly-energy-efficient-homes-attract-buyers/" rel="noopener noreferrer" target="_blank">house</a> on the market this <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank">summer</a>, considering newly built homes is crucial for expanding the options you’ll have for your next move.
Near-Record Percentage of New Home Inventory
Newly built homes today make up a near-record percentage of the total number of homes available for sale (see graph below):
<a href="https://www.mykcm.com/content/images/20230627/20230629-newly-built-homes-make-up-31-percent-of-total-inventory.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230629-newly-built-homes-make-up-31-percent-of-total-inventory.png" /></a>
In fact, as the data shows, newly built homes now make up <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">31%</a> of the total for-sale inventory. Over the past couple of decades, newly built homes made up an average of only around <a href="https://www.census.gov/housing/hvs/data/histtabs.html" rel="noopener noreferrer" target="_blank">13%</a> of total housing inventory from 1983 to 2019.
That means the percentage of the total available homes that are newly built is over two times higher than the norm.
Why This Matters to You
Overall, the supply of homes for sale is still low. And when there’s limited supply, it’s crucial to explore all of your available choices. New-home construction has emerged as a game changer with increasing inventory. Not to mention, recent <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank">data</a> shows it’s gaining even more momentum as more newly built homes are underway and will be coming to the market in the months ahead.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), highlights the importance of newly built homes for those looking to buy in today’s housing market. Dietz <a href="https://www.usatoday.com/story/money/2023/05/16/new-home-construction-silver-lining/70222917007/" rel="noopener noreferrer" target="_blank">states</a>:
"With limited available housing inventory, new construction will continue to be a significant part of prospective buyers' search in the quarters ahead."
Don’t overlook this growing market segment and risk missing out on great opportunities to find your ideal home. Since new home construction accounts for roughly 31% of total for sale inventory, you could be cutting nearly one in three options from your search if you don’t consider newly built homes.
If you’re looking to make a move, a local real estate agent can help you <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank">sell</a> your current house and explore newly built options in your area. They have the expertise you need to handle both sides of the process so you can move out of your current house and into your brand-new dream home.
Bottom Line
Now’s the time to <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">sell</a> your house and take advantage of the momentum that’s building in new home construction. Let’s connect so you have a guide throughout the selling and buying process. Together, we can make your transition to a newly built home a reality.
2023-06-29T12:47:20-07:002023-06-29T12:51:38-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9446The Benefits of Selling Now, According to Experts<img src="https://files.keepingcurrentmatters.com/content/images/20230524/20230525-the-benefits-of-selling-now-according-to-experts.jpg" />
The Benefits of Selling Now, According to Experts
If you’re trying to decide if now’s the time to <a href="https://www.mykcm.com/2023/05/05/reasons-to-sell-your-house-today-infographic/" rel="noopener noreferrer" target="_blank">sell your house</a>, here’s what you should know. The limited number of homes available right now gives you a <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank">big advantage</a>. That’s because there are <a href="https://www.mykcm.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/" rel="noopener noreferrer" target="_blank">more buyers</a> out there than there are homes for sale. And, with so <a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank">few homes</a> on the market, buyers will have fewer options, so you set yourself up to get the <a href="https://www.mykcm.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank">most eyes possible</a> on your house.
Here’s what industry experts are saying about why selling now has its benefits:
<a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" rel="noopener noreferrer" target="_blank">Lawrence Yun</a>, Chief Economist at the National Association of Realtors (NAR):
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
<a href="https://www.bankrate.com/real-estate/housing-market-predictions/#predictions" rel="noopener noreferrer" target="_blank">Selma Hepp</a>, Chief Economist at CoreLogic:
“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”
<a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">Clare Trapasso</a>, Executive News Editor at Realtor.com:
“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”
<a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank">Jeff Tucker</a>, Senior Economist at Zillow:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
Bottom Line
If you’re thinking about selling your house, let’s connect so you have the expert insights you need to make the best possible move today.
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2023-05-25T12:45:34-07:002023-05-25T12:49:15-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9383The Best Time To Sell Your House Is When Others Aren’t Selling<img src="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-best-time-to-sell-your-house-is-when-others-arent-selling.jpg" />
The Best Time To Sell Your House Is When Others Aren’t Selling
If you’re thinking about <a href="https://www.mykcm.com/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/" rel="noopener noreferrer" target="_blank">selling</a> your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.
Looking back at every <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">April</a> since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" /></a>
While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.
As a recent survey from Realtor.com <a href="https://news.move.com/2023-04-17-Realtor-com-R-Survey-82-of-Those-Looking-to-Buy-and-Sell-a-Home-Feel-Locked-In-by-Low-Mortgage-Rate" rel="noopener noreferrer" target="_blank">explains</a>, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.
While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.
If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to <a href="https://www.mykcm.com/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/" rel="noopener noreferrer" target="_blank">stand out</a>. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank">multiple offers</a> as buyers compete over the limited supply of homes for sale – especially if you <a href="https://www.mykcm.com/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/" rel="noopener noreferrer" target="_blank">price it right</a>.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" rel="noopener noreferrer" target="_blank">says</a>:
“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties."
Bottom Line
If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.
2023-05-11T12:52:05-07:002023-05-11T12:56:03-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9246Want To Sell Your House This Spring? Price It Right.<img src="https://files.keepingcurrentmatters.com/content/images/20230412/20230413-want-to-sell-your-house-this-spring-price-it-right-KCM.jpg" />
Want To Sell Your House This Spring? Price It Right.
Over the last year, the housing market’s gone through significant change. While it’s still a <a href="https://www.mykcm.com/2023/03/30/were-in-a-sellers-market-what-does-that-mean/" rel="noopener noreferrer" target="_blank">sellers’ market</a>, homes that are priced right are selling, and they get the most attention from buyers right now. If you’re thinking of selling your house this spring, it’s important to lean on your expert real estate advisor when it comes to setting a list price. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-first-time-home-sellers-need-to-know-to-be-successful-this-spring/" rel="noopener noreferrer" target="_blank">explains</a>:
“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”
In today’s market, how you price your house will not only make a big difference to your bottom line, but to how quickly your house will sell.
Why Pricing Your House Right Matters
Your asking price sends a message to potential buyers, especially today.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to drive interest when your house sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what it means about the home.
To avoid either headache, price it right from the start. A <a href="https://www.mykcm.com/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/" rel="noopener noreferrer" target="_blank">real estate professional</a> knows how to determine the ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.
The visual below helps summarize the impact your asking price can have:
<a href="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" /></a>
Bottom Line
Homes priced at the current market value are selling faster and at a better price right now. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassles, let’s connect today.
2023-04-14T11:46:38-07:002023-04-14T12:12:38-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9165Two Reasons You Should Sell Your House<img src="https://files.keepingcurrentmatters.com/content/images/20230403/20230404-2-reasons-you-should-sell-your-house-KCM.jpg" />
Two Reasons You Should Sell Your House
Wondering if you should sell your house this year? As you make your decision, think about what’s motivating you to consider moving. A recent <a href="https://www.realtor.com/research/2023-q1-sellers-survey/" rel="noopener noreferrer" target="_blank">survey</a> from realtor.com asked why homeowners are thinking about selling their houses this year. Here are the top two reasons (see graphic below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230403/20230404-why-are-you-considering-selling-your-home-in-2023-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230403/20230404-why-are-you-considering-selling-your-home-in-2023-MEM.png" /></a>
Let’s break those reasons down and explore how they might resonate with you.
1. I Want To Take Advantage of the Current Market and Make a Profit
When you decide to sell your house, how much you’ll make from the sale will likely be top of mind. So, here’s some good news: according to the latest data, the average seller can expect a strong return on their investment when they make a move. ATTOM <a href="https://www.attomdata.com/hnr/us-home-seller-profits-top-50-percent-in-2022-despite-market-slowdown/" rel="noopener noreferrer" target="_blank">explains</a>:
“The $112,000 profit on median-priced home sales in 2022 represented a 51.4% return on investment compared to the original purchase price, up from 44.6% last year and from 32.8% in 2020.”
Even though home prices have declined slightly in some markets, they’re still much higher overall than they were just a few years ago. To understand what’s happening with home prices in your area and the current value of your house, work with a local real estate professional. They can give you the best advice on how much you could gain if you sell this year.
2. My Home No Longer Meets My Needs
The average person has been in their house for <a href="https://www.nar.realtor/blogs/economists-outlook/eleven-takeaways-from-the-2022-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">ten years</a>. That’s a long time when you think about how much may have changed in your life since you moved in. And typically, those changes have a direct impact on what you need in a home. Whether it’s more (or less) space, different features, or a location closer to your work or loved ones, your current house may no longer check all the boxes of what feels like home to you. If that’s the case, it could be time to work with a real estate agent to find a better fit.
Bottom Line
If you’re thinking about selling your house, there’s probably a good reason for it. Let’s connect so you can make a move that’ll help you accomplish your goals this year.
2023-04-04T12:06:00-07:002023-04-04T12:10:48-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8652Is It Time To Sell Your Second Home?<img src="https://files.mykcm.com/2023/01/11104936/is-it-time-to-sell-your-second-home-KCM.jpg" alt="Is It Time To Sell Your Second Home? | MyKCM" />
Is It Time To Sell Your Second Home?
During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a <a href="https://www.investopedia.com/articles/personal-finance/092414/investing-luxury-real-estate.asp" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a>, Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.
A recent report from the Institute for Luxury Home Marketing (ILHM) <a href="https://issuu.com/realmarketing/docs/_ilhm_-_luxury_report_northamerica_nov2022" title="explains" target="_blank" rel="noopener noreferrer">explains</a> just how much remote work impacted the demand for second and luxury homes:
“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”
But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to <a href="https://www.mykcm.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/" title="sell it">sell it</a>.
And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing <a href="https://issuu.com/realmarketing/docs/_ilhm_-_luxury_report_northamerica_dd23a270bcdf6f" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.
This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”
If you own a luxury second home that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.
Bottom Line
Let’s connect to explore the benefits of selling your second home this year.
2023-01-12T13:38:15-07:002023-01-13T16:51:08-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8565Planning To Sell Your House? It’s Critical To Hire a Pro.<img src="https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM.jpg" alt="Planning To Sell Your House? It’s Critical To Hire a Pro | MyKCM" />
Planning To Sell Your House? It’s Critical To Hire a Pro.
With higher mortgage rates and moderating buyer demand, conditions in the housing market are different <a href="https://www.mykcm.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/" title="today">today</a>. And if you’re thinking of <a href="https://www.mykcm.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/" title="selling your house">selling your house</a>, it’s important to understand how the market has changed and what that means for you. The best way to make sure you’re in the know is to work with a trusted housing market expert.
Here are five reasons working with a professional can ensure you’ll get the most out of your sale.
1. A Real Estate Advisor Is an Expert on Market Trends
Leslie Rouda Smith, 2022 President of the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“During challenging and changing market conditions, one thing that’s calming and constant is the assurance that comes from a Realtor® being in your corner through every step of the home transaction. Consumers can rely on Realtors®’ unmatched work ethic, trusted guidance and objectivity to help manage the complexities associated with the home buying and selling process.”
An expert real estate advisor has the latest information about national trends and your local area too. More importantly, they’ll know what all of this means for you so they’ll be able to help you make a decision based on trustworthy, data-bound information.
2. A Local Professional Knows How To Set the Right Price for Your House
<a href="https://www.mykcm.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/" title="Home price appreciation">Home price appreciation</a> has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. If you do, you run the risk of deterring buyers or seeing your house sit on the market for longer.
Real estate professionals provide an unbiased eye when they help you determine a price for your house. They’ll use a variety of factors, like the condition of your home and any upgrades you’ve made, and compare your house to recently sold homes in your area to find the best price for today’s market. These steps are key to making sure it’s set to move as quickly as possible.
3. A Real Estate Advisor Helps Maximize Your Pool of Buyers
Since buyer demand has cooled this year, you’ll want to do what you can to help bring in more buyers. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house gets in front of people looking to make a purchase. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.”
Without access to the tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.
4. A Real Estate Expert Will Read – and Understand – the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. NAR <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-sellers/8-reasons-to-work-with-a-realtor" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what all the fine print means and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
5. A Trusted Advisor Is a Skilled Negotiator
In today’s market, buyers are also regaining some negotiation power as bidding wars ease. If you sell without a professional, you’ll also be responsible for any back-and-forth. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all the above parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
Bottom Line
Don’t go at it alone. If you’re planning to sell your house this winter, let’s connect so you have an expert by your side to guide you in today’s market.
2022-12-29T13:35:36-07:002022-12-29T13:42:50-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8463Ready To Sell? Today’s Housing Supply Gives You Two Opportunities.<img src="https://files.mykcm.com/2022/12/12132707/ready-to-sell-todays-housing-supply-gives-you-two-opportunities-KCM.jpg" alt="Ready To Sell? Today’s Housing Supply Gives You Two Opportunities. | MyKCM" />
Ready To Sell? Today’s Housing Supply Gives You Two Opportunities.
At first glance, the increase in housing supply compared to last year may not sound like good news for prospective <a href="https://www.mykcm.com/2022/11/16/top-questions-about-selling-your-home-this-winter/" title="sellers">sellers</a>, but it actually gives you two key opportunities in <a href="https://www.mykcm.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/" title="today’s housing market">today’s housing market</a>.
An <a href="https://www.calculatedriskblog.com/2022/12/housing-december-12th-weekly-update.html" title="article" target="_blank" rel="noopener noreferrer">article</a> from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you’ll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 35% below the <a href="https://www.mykcm.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/" title="housing supply">housing supply</a> we had at that time.
<a href="https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106340" src="https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM.png" alt="Ready To Sell? Today’s Housing Supply Gives You Two Opportunities. | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM.png 960w, https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Opportunity #1: Take Advantage of More Options for Your Move
If your current house no longer <a href="https://www.mykcm.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/" title="meets your needs">meets your needs</a> or lacks the space and features you want, this inventory growth gives you even more <a href="https://www.mykcm.com/2022/11/28/your-house-could-be-the-1-item-on-a-homebuyers-wish-list-during-the-holidays/" title="opportunity to sell">opportunity to sell</a> and move into the home of your dreams. With more houses on the market, you’ll have more to choose from when you search for your next home.
Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.
Opportunity #2: Sell While Inventory Is Still Low Overall
But again, despite the growth, inventory is still low compared to more normal years, and that isn’t going to change overnight. For you, that means your house should still be in demand among potential buyers if you price it right.
As an article from realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-17-2022-2/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Today’s shoppers generally have more homes to consider than last year’s shoppers did, but the market is still not back to pre-pandemic inventory levels.”
Bottom Line
If you’re a homeowner <a href="https://www.mykcm.com/2022/11/02/sell-your-house-before-the-holidays/" title="looking to sell">looking to sell</a>, you have more homes to choose from and can still sell your house while inventory is low overall. Let’s connect to get started, so you can have the best of both worlds.2022-12-13T13:34:20-07:002022-12-13T13:39:03-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:8292Sell Your House Before the Holidays<img src="https://files.mykcm.com/2022/10/31161005/sell-your-house-before-the-holidays-KCM.jpg" alt="Sell Your House Before the Holidays | MyKCM" />
Sell Your House Before the Holidays
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As you look ahead to the winter season, you’re likely making plans and thinking about what you want to achieve before the year ends. One of those key decision points could be whether or not you want to move this year. If the location or size of your current home no longer meets your needs, finding a house that better suits your lifestyle may be a top priority for you. But with today’s cooling housing market, is it really a good time to <a href="https://www.mykcm.com/2022/10/21/3-questions-you-may-be-asking-about-selling-your-house-today-infographic/" title="sell your house">sell your house</a>, or should you wait?
If you’re ready to make your decision, here are three reasons you may want to consider selling before the holidays.
1. Get One Step Ahead of Other Sellers
Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and deprioritize selling their house until the start of the new year when their schedules and social calendars calm down.
Selling now, while other homeowners may hold off until after the holidays, can help your house stand out. Start the process with a real estate professional today so you can get your house on the market and get ahead of your competition.
2. Get in Front of Serious Buyers This Season
Even though <a href="https://www.mykcm.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/" title="housing supply">housing supply</a> has increased this year as buyer demand has moderated, it’s still low overall. That means there aren’t enough homes on the market today, especially as the <a href="https://www.mykcm.com/2022/10/27/millennials-are-still-a-driving-force-of-todays-buyer-demand/" title="millennial generation">millennial generation</a> reaches their peak homebuying years. As Mark Fleming, Chief Economist at First American, <a href="https://www.thestreet.com/investing/housing-market-slump-forecast-continues-into-late-2023" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
Serious buyers will still be looking this winter and your house may be exactly what they’re searching for. If you work with an agent to list your house now, you’ll be able to get in front of the eager buyers who are hoping to make a move before the year ends.
3. Seize a Great Chance To Move Up
Don’t forget, today’s homeowners have record amounts of <a href="https://www.mykcm.com/2022/09/26/the-true-strength-of-homeowners-today/" title="equity">equity</a>. According to <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>, the average amount of equity per mortgage holder has climbed to almost $300,000. That’s an all-time high. That means the equity you have in your house right now could cover some, if not all, of a <a href="https://www.mykcm.com/2022/10/10/saving-for-a-down-payment-heres-what-you-should-know/" title="down payment">down payment</a> on the home of your dreams.
And as you weigh the reasons to sell before winter, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location for you, has the space you and your loved ones have been craving, or simply gives you that sense of home. A trusted real estate advisor can help you determine how much home equity you have and how you can use it to achieve your goal of <a href="https://www.mykcm.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/" title="making a move">making a move</a>.
Bottom Line
If you’re thinking about selling your house so you can find a home that better suits your needs, don’t delay your plans. Let’s connect so you can accomplish your goals before winter.
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2022-11-03T12:18:45-07:002022-11-03T12:22:42-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7994What Sellers Need To Know in Today’s Housing Market
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<img src="https://files.mykcm.com/2022/08/22152838/20220823-KCM-Share.jpg" alt="What Sellers Need To Know in Today’s Housing Market | MyKCM" />
If you’re thinking about <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="selling your house">selling your house</a>, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer <a href="https://www.mykcm.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/" title="bidding wars">bidding wars</a> and less competition among buyers (see visual below):
<a href="https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104252" src="https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1.png" alt="What Sellers Need To Know in Today’s Housing Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/08/22152839/20220823-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" title="Confidence Index" target="_blank" rel="noopener noreferrer">Confidence Index</a> from NAR:
“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>.
If you’re ready to sell your house, seek the advice of a <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="real estate professional">real estate professional</a>. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-august-2022/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> what’s happening and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Bottom Line
While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.
</article>
2022-08-23T12:05:00-07:002022-08-23T12:05:48-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7284Why a Real Estate Professional Is Key When Selling Your House<img width="750" height="410" src="https://files.mykcm.com/2022/04/11105553/20220412-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why a Real Estate Professional Is Key When Selling Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/04/11105553/20220412-KCM-Share.jpg 750w, https://files.mykcm.com/2022/04/11105553/20220412-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/04/11105553/20220412-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
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With today’s real estate market moving as fast as it is, working with a <a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/" title="real estate professional">real estate professional</a> is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="lowest point" target="_blank" rel="noopener noreferrer">lowest point</a> since 1985 (see graph below):
<a href="https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-101757" src="https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1.png" alt="Why a Real Estate Professional Is Key When Selling Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/04/11105555/20220412-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Here are five reasons why selling with a real estate professional makes more sense, even in today’s <a href="https://www.mykcm.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/" title="hot market">hot market</a>:
1. They Know What Buyers Want To See
Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house <a href="https://www.mykcm.com/2022/03/18/spring-cleaning-checklist-for-sellers-infographic/" title="shows well">shows well</a>.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A <a href="https://myhome.freddiemac.com/blog/homeownership/breathing-new-life-old-buying-fixer-upper-and-distressed-homes" title="survey" target="_blank" rel="noopener noreferrer">survey</a> from Freddie Mac finds that:
“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.” 
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.
2. They Help Maximize Your Buyer Pool
Today, the average home is getting 4.8 offers per sale according to <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-02-realtors-confidence-index-03-18-2022.pdf" title="recent data" target="_blank" rel="noopener noreferrer">recent data</a> from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.
Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to <a href="https://www.realtor.com/advice/buy/what-is-fsbo-for-sale-by-owner/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They Understand the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. They’re Trained Negotiators
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. <a href="https://www.mykcm.com/2022/03/07/why-its-critical-to-price-your-house-right/" title="Pricing a house">Pricing a house</a> requires expertise. Investopedia <a href="https://www.investopedia.com/ask/answers/072915/how-market-value-determined-real-estate-market.asp#:~:text=Unfortunately%2C%20there%20is%20no%20easy,appraisals%20and%20recent%20comparable%20sales." title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.
Bottom Line
There’s a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.
</article>
2022-04-12T12:14:00-07:002022-04-12T12:13:12-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6727What Every Seller Needs To Know About Renovating This YearIf you’re planning to sell this year, you’re probably thinking about what you’ll need to do to get your house ready to appeal to the most buyers. It’s crucial to work with a trusted real estate professional who knows your local market to get your home ready to sell. But there are a few things you should consider when deciding what to renovate and update before listing this season. Here are three things to keep top of mind as you’re making your list of projects to tackle this year.
1. The Number of Homes for Sale Is Very Low
<a href="https://www.mykcm.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/" title="Housing inventory">Housing inventory</a> sits far below what is normally considered a balanced market. In fact, according to the <a href="https://www.nar.realtor/newsroom/annual-existing-home-sales-hit-highest-mark-since-2006" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the latest data indicates inventory is hitting an all-time low. Because there’s such a limited supply of homes available for sale, you’re in a unique position when you sell your house to benefit from multiple offers and a quick process.
But you want to do so while buyers are still scooping homes up as fast as they’re being listed. Spending time and money on renovations before you sell could mean you’ll miss your key window of opportunity. Of course, certain repairs may be important or even necessary. The best way to determine where to spend <a href="https://www.mykcm.com/2022/01/14/when-is-the-right-time-to-sell-infographic/" title="your time">your time</a> – and your money – is to work with a <a href="https://www.mykcm.com/2021/12/30/why-selling-your-house-with-a-real-estate-professional-is-essential/" title="real estate advisor">real estate advisor</a> to confirm which improvements are truly needed and which ones aren’t likely to be deal-breakers for buyers.
2. Buyers May Be Willing To Take on Projects When They Purchase Your House
Today, many buyers are more willing to take on home improvement projects themselves to get the house they’re after, even if it means putting in a little extra work. A <a href="https://myhome.freddiemac.com/blog/homeownership/breathing-new-life-old-buying-fixer-upper-and-distressed-homes" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from Freddie Mac finds that:
“. Nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.”
If more buyers are willing to tackle repairs on their own, it may be wise to let the future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. Depending on the structural condition of your house, your efforts may be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior to make sure the home stands out. Instead of over-investing in upgrades, the buyer may change anyway, work with a real estate professional to determine the key projects to tackle that will give you the greatest return on your investment.
3. Your Agent Will Help You Spotlight the Upgrades You’ve Made
Over the past year, many people made a significant number of updates to their homes. The most recent <a href="https://www.angi.com/research/reports/spending/#ixzz7Ie5OiQjX" title="State of Home Spending" target="_blank" rel="noopener noreferrer">State of Home Spending</a> report finds:
“Home improvement spending rose 25% year-over-year to $10,341. Homeowners who invested in home improvement did an average of 3.7 projects, up from 2.7 in 2020, . . .”
With more homeowners taking on more projects in the past 12 months, there’s a good chance you’ve already made updates to your home that could appeal to buyers. If that’s the case, your real estate advisor will find ways to highlight those upgrades in your listing.
The same is true for any projects you invest in moving forward. No matter what, before you renovate, contact a local real estate professional for expert advice on what work needs to be done and how to make it as appealing as possible to future buyers. Every home is different, so a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.
Bottom Line
In a sellers’ market like today’s, it’s important to spend your time and money wisely when you’re getting ready to move. Let’s connect today so you can find out where to target your efforts before you list.2022-02-15T13:18:00-07:002022-03-03T17:06:11-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6662Why Right Now Is a Once-in-a-Lifetime Opportunity for SellersIf you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why.
Demand Is Very Strong
According to the latest <a href="https://www.nar.realtor/newsroom/annual-existing-home-sales-hit-highest-mark-since-2006" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”
Demand isn’t expected to weaken this year, either. In addition, the <a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary" title="Mortgage Finance Forecast" target="_blank" rel="noopener noreferrer">Mortgage Finance Forecast</a>, published last week by the Mortgage Bankers’ Association (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The same sales report from NAR also reveals the months’ supply of inventory just hit the lowest number of the century. It notes:
“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”
The reality is, inventory decreases every year in December. That’s just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going all the way back to 1999.
<a href="https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-100834" src="https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1.png" alt="Why Right Now Is a Once-in-a-Lifetime Opportunity for Sellers | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/01/26135022/20220127-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Right Now, Sellers Have Maximum Leverage
As mentioned above, when there’s strong demand for an item and a limited supply of it available, the seller has maximum <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" title="leverage">leverage</a>in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. While demand is this high and <a href="https://www.mykcm.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/" title="inventory">inventory</a> is this low, you’ll have leverage in all aspects of the sale of your house.
Today’s buyers know they need to be <a href="https://www.mykcm.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home" title="flexible negotiators">flexible negotiators</a> that make very <a href="https://www.mykcm.com/2021/09/27/if-youre-a-buyer-is-offering-asking-price-enough/" title="competitive offers">competitive offers</a>, so here are a few areas that could tip in your favor when your house goes on the market:
Competitive sales price
Flexible closing date
Potential for a leaseback to allow you more time to find a home
Minimal offer contingencies
Bottom Line
If you’re thinking of selling your house this year, now is the optimal time to list it. Let’s connect to discuss how you can put your house on the market today.2022-01-27T13:38:00-07:002022-01-27T13:39:31-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:6616Sellers: Don’t Wait Until Spring To Make Your MoveAs you plan out your goals for the <a href="https://www.mykcm.com/2021/12/17/2022-housing-market-forecast-infographic/" title="year">year</a>, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out of the sale of your current house. You also want to know you’re making a good investment when you buy your new home. What you may not realize is, that opportunity to get the best of both worlds is already here.
You don’t want to wait until spring to spring into action. The current market conditions make <a href="https://www.mykcm.com/2021/12/13/if-you-think-the-housing-market-will-slow-this-winter-think-again/" title="this winter">this winter</a> an ideal time to move. Here’s why.
1. The Number of Homes on the Market Is Still Low
Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market than there are homes available, and that means buyers are eagerly waiting for your house. Listing your house now makes it the center of attention. As a seller, that means when it’s priced correctly, you can expect it to sell quickly and get multiple <a href="https://www.mykcm.com/2021/11/16/sellers-youll-likely-get-multiple-strong-offers-this-season/" title="strong offers">strong offers</a> this season. Just remember, experts project <a href="https://www.mykcm.com/2021/11/18/home-sales-about-to-surge-we-may-see-a-winter-like-never-before/" title="more inventory">more inventory</a> will come to market as we move through the winter months. The realtor.com <a href="https://www.realtor.com/research/2022-national-housing-forecast/" title="2022 forecast" target="_blank" rel="noopener noreferrer">2022 forecast</a> says this:
“After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.”
Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.
2. Your Equity Is Growing in Record Amounts
Current homeowners are sitting on record amounts of <a href="https://www.mykcm.com/2021/12/21/the-average-homeowner-gained-56700-in-equity-over-the-past-year/" title="equity">equity</a> thanks to today’s home price appreciation. According to the <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="latest report" target="_blank" rel="noopener noreferrer">latest report</a> from CoreLogic, the average homeowner gained $56,700 in equity over the past 12 months.
That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your own <a href="https://www.mykcm.com/2021/12/08/struggling-to-find-a-home-to-buy-new-construction-may-be-an-option/" title="home search">home search</a>, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion – if not all – of the <a href="https://www.mykcm.com/2021/12/22/the-perks-of-putting-20-down-on-a-home/" title="down payment">down payment</a> on your next purchase.
3. While Rising, Mortgage Rates Are Still Historically Low
In January of last year, mortgage <a href="http://www.freddiemac.com/pmms/" title="rates" target="_blank" rel="noopener noreferrer">rates</a> hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. Current mortgage rates are still far below what they’ve been in <a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" title="recent decades">recent decades</a>:
In the 2000s, the average mortgage rate was 6.27%
In the 1990s, the average rate was 8.12%
Even with mortgage rates rising above 3%, they’re still worth taking advantage of. You just want to do so sooner rather than later. Experts are projecting rates will continue to rise throughout this year, and when they do, it’ll <a href="https://www.mykcm.com/2021/11/24/how-smart-buyers-are-approaching-rising-mortgage-rates/" title="cost you more">cost you more</a> to purchase your next home.
4. Home Prices Are Going To Keep Rising with Time
According to industry leaders, <a href="https://www.mykcm.com/2021/12/15/what-everyone-wants-to-know-will-home-prices-decline-in-2022/" title="home prices">home prices</a> will also continue appreciating this year. While experts are forecasting more moderate home price growth than last year, it’s important to note prices will still be moving in an upward direction throughout 2022.
What does that mean for you? If you’re selling so you can move into a bigger home or downsize to the home of your dreams, you want to consider moving now before rates and prices rise further. If you’re ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.
Bottom Line
If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect today to get set up for homebuying success this year.2022-01-18T10:05:00-07:002022-01-18T10:06:23-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:6575Why Waiting To Sell Your House Could Cost You a Small FortuneMany homeowners who plan to sell in 2022 may think the wise thing to do is to wait for the spring buying market since historically about <a href="https://www.fortunebuilders.com/homebuyers-guide-to-the-busy-spring-selling-season/" title="40 percent" target="_blank" rel="noopener noreferrer">40 percent</a> of home sales occur between April and July. However, this year’s expected to be much different than the norm. Here are five reasons to list your house now rather than waiting until the spring.
1. Buyers Are Looking Right Now, and They’re Ready To Purchase
The ShowingTime Showing Index reports data from more than six million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are out looking at homes at the current time.
The latest index, which covers <a href="https://www.showingtime.com/blog/november-2021-showing-index-results/" title="November showings" target="_blank" rel="noopener noreferrer">November showings</a>, reveals that buyers are still very active in the market. Comparing this November’s numbers to previous years, this graph shows that the index is higher than last year and much higher than the three years prior to the pandemic. Clearly, there’s an influx of buyers searching for your home.
<a href="https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-100496" src="https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1.png" alt="Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Also, at this time of year, only those purchasers who are serious about buying a home will be in the market. You and your loved ones won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a <a href="https://myhome.freddiemac.com/blog/homeownership/20170129-pros-cons-buying-home-in-winter" title="recent blog" target="_blank" rel="noopener noreferrer">recent blog</a>:
“The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true right now based on the number of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed real estate contracts for existing single-family homes, condos, and co-ops. The <a href="https://www.nar.realtor/newsroom/pending-home-sales-subside-2-2-in-november" title="latest index" target="_blank" rel="noopener noreferrer">latest index</a> shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”
Comparing the index to previous Novembers, while it’s slightly below November 2020 (when sales were pushed to later in the year because of the pandemic), it’s well above the previous three years.
<a href="https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-100497" src="https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2.png" alt="Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy.
2. Other Sellers Plan To List Earlier This Year
The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your house on the market when there’s strong demand and less competition.
A <a href="https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter" title="recent study" target="_blank" rel="noopener noreferrer">recent study</a> by realtor.com reveals that, unlike in previous years, sellers plan to list their homes this winter instead of waiting until spring or summer. The study shows that 65% of sellers who plan to sell in 2022 have either already listed their home (19%) or are planning to put it on the market this winter.
Again, if you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, listing before this competition hits the market makes sense.
3. Newly Constructed Homes Will Be Your Competition in the Spring
In 2020, there were over <a href="https://www.census.gov/construction/bps/" title="979,000" target="_blank" rel="noopener noreferrer">979,000</a> new single-family housing units authorized by building permits. Many of those homes have yet to be built because of labor shortages and supply chain bottlenecks brought on by the pandemic. They will, however, be completed in 2022. That will create additional competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure your house gets as much attention from interested buyers as possible.
4. There Will Never Be a Better Time To Move-Up
If you’re moving into a larger, more expensive home, consider doing it now. Prices are projected to appreciate by <a href="https://www.mykcm.com/2021/12/15/what-everyone-wants-to-know-will-home-prices-decline-in-2022/" title="approximately 5%">approximately 5%</a>over the next 12 months. That means it will cost you more (both in down payment and mortgage payment) if you wait. You can also lock in your 30-year housing expense with a mortgage rate in the <a href="http://www.freddiemac.com/pmms/" title="low 3’s" target="_blank" rel="noopener noreferrer">low 3’s</a> right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" title="forecast to rise">forecast to rise</a> throughout the year.
5. It May Be Time for You To Make a Change
Consider why you’re thinking of selling in the first place and determine whether it’s worth waiting. Is waiting more important than being closer to your loved ones now? Is waiting more important than your health? Is waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think about your goals and priorities as we move into 2022 and consider what’s most important to act on now.
Bottom Line
If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, let’s connect so you have expert advice on the best time to put your house on the market.2022-01-06T12:03:00-07:002022-01-06T12:05:45-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6417Why Now Is a Great Time To Sell Your HouseAs we near the end of the year, more homeowners are realizing the benefits of today’s sellers’ market. Record-breaking <a href="https://www.mykcm.com/2021/11/10/whats-happening-with-home-prices/" title="home price appreciation">home price appreciation</a>, growing <a href="https://www.mykcm.com/2021/10/22/your-home-equity-is-growing-infographic/" title="equity">equity</a>, low <a href="https://www.mykcm.com/2021/11/09/how-sellers-win-when-housing-inventory-is-low/" title="inventory">inventory</a>, and competitive <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" title="mortgage rates">mortgage rates</a> are motivating homeowners to make a move that addresses their <a href="https://www.mykcm.com/2021/10/28/does-your-house-have-what-buyers-want/" title="changing lifestyles">changing lifestyles</a>.
In fact, recent <a href="https://www.realtor.com/research/home-sellers-autumn-2021/" title="data" target="_blank" rel="noopener noreferrer">data</a> from realtor.com shows a larger share of homeowners are planning to list their houses this winter. So, that means <a href="https://www.mykcm.com/2021/11/18/home-sales-about-to-surge-we-may-see-a-winter-like-never-before/" title="more homes">more homes</a> are about to hit the market, which will lead to more choices for buyers too.
According to George Ratiu, Manager of Economic Research at <a href="https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.”
If you’re thinking of waiting until the spring to sell your house, know that your neighbors may be one step ahead of you by selling this winter. If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers. Here’s why.
Sellers Are Still Firmly in the Driver’s Seat
Historically, a 6-month supply of homes for sale is needed for a normal or neutral market. That level ensures there are enough homes available for active buyers (see graph below):<a href="https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-100020" src="https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1.png" alt="Why Now Is a Great Time To Sell Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/11/22124557/20211129-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR) shows the inventory of houses for sale sits at a 2.4-month supply. This is well below a neutral market.
What Does That Mean for You?
When the supply of homes for sale is as low as it is today, it’s much harder for buyers to find homes to purchase. This drives up competition among buyers, who then submit increasingly competitive offers to win out against others in the home search process. As this happens, prices rise and <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" title="your leverage">your leverage</a> as a seller rises too, putting you in the best position to negotiate a contract that meets your ideal terms.
And while the low housing supply we’re facing won’t be solved overnight, sellers this season should move quickly to maximize their potential. As the data shows, with more prospective sellers planning to list their homes this winter, selling sooner rather than later helps your house rise to the top of a holiday buyer’s wish list so you can close the best possible deal.
Bottom Line
Listing your home over the next few weeks gives you the best chance to be in front of buyers competing for homes this holiday season. Let’s connect today to discuss how you can benefit from today’s sellers’ market.2021-11-29T12:58:00-07:002021-11-29T12:59:48-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:6330Sellers: You’ll Likely Get Multiple Strong Offers This SeasonAre you thinking about <a href="https://www.mykcm.com/2021/11/05/numbers-dont-lie-its-still-a-great-time-to-sell-infographic/" title="selling">selling</a> your house right now, but you’re not sure you’ll have the time to do so as the holidays draw near? If so, consider this: even as the holiday season approaches, there are plenty of buyers out there, and they really want <a href="https://www.mykcm.com/2021/10/28/does-your-house-have-what-buyers-want/" title="your house">your house</a>. Here’s why selling this winter is a win for you.
Today’s buyers are still dealing with a limited number of homes for sale. Thanks to continued <a href="https://www.mykcm.com/2021/10/27/housing-challenge-or-housing-opportunity-it-depends/" title="low inventory">low inventory</a>, those buyers are competing with one another for their dream home. And when that happens, if your house is one of the few on the market, it will rise to the top of the pool – and it will be worth it.
According to the latest data from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-09-realtors-confidence-index-10-21-2021.pdf" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the average seller received 3.7 offers on their house in September. For a view into what’s happening at the state level, take a look at the map below:
<a href="https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99933" src="https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1.png" alt="Sellers: You’ll Likely Get Multiple Strong Offers This Season | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1.png 960w, https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1-600x450.png 600w, https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1-768x576.png 768w, https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Nationwide, the average seller today is getting nearly four offers. That number is significant because it means you’ll likely have multiple offers to pick from if you sell your house this season. To put things into perspective, no matter where your state falls, remember that you really only need one good offer to close the deal.
Any offer you receive will likely be from a highly motivated buyer who’s doing everything they can to beat the <a href="https://www.mykcm.com/2021/10/08/whats-causing-todays-competitive-real-estate-market-infographic/" title="competition">competition</a>. The stakes for buyers are high. They’ve been looking for a house and they want to lock in their dream home before <a href="https://www.mykcm.com/2021/10/19/what-does-the-future-hold-for-home-prices/" title="prices">prices</a> and <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" title="mortgage rates">mortgage rates</a> rise further next year. Chances are, they’ll get creative with the terms of their offer, which could include waiving contingencies and offering over the asking price – both of which are great news for <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" title="you">you</a>.
If you’re on the fence about when to sell, remember your house is a hot commodity this season. As other sellers take a break for the holidays with plans to re-list their homes in the new year, you can put your house in front of motivated buyers by making your move today. That means your house will be the <a href="https://www.mykcm.com/2021/10/18/sellers-your-house-could-be-an-oasis-for-buyers-seeking-more-options/" title="center of attention">center of attention</a>, and likely the center of a bidding war too.
Bottom Line
Selling now gives you even more opportunity to win big as buyers compete for your house in today’s market.2021-11-17T11:06:00-07:002021-11-17T11:07:19-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6246Housing Challenge or Housing Opportunity? It Depends.The biggest challenge in real estate today is the lack of available homes for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we’ve experienced historically.
There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we’re well below where we’ve been for most of the past 10 years. Today, across the country, there is only a <a href="https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september" title="2.4-month" target="_blank" rel="noopener noreferrer">2.4-month</a> supply of homes available for sale.
<a href="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99733" src="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" alt="Housing Challenge or Housing Opportunity? It Depends. | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The Opportunity
This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>, the average home has appreciated by more than $50,000 over the <a href="https://www.mykcm.com/2021/10/22/your-home-equity-is-growing-infographic/" title="past year">past year</a>. And for many homeowners, that’s opening new doors as they re-think their needs and use their equity to move up or downsize.
According to <a href="https://twitter.com/DrFrankNothaft/status/1450526459483807749" title="Dr. Frank Nothaft" target="_blank" rel="noopener noreferrer">Dr. Frank Nothaft</a>, Chief Economist at CoreLogic:
“The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021.”
Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.
Bottom Line
The biggest challenge in real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you’re thinking about selling your house, let’s connect to start the process.2021-10-28T08:46:00-07:002021-10-28T08:47:54-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6059Reasons You Should Consider Selling This FallIf you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a>we’re in today won’t last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.
1. Your House Will Likely Sell Quickly
According to the Realtors Confidence Index released by the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-07-realtors-confidence-index-08-23-2021.pdf" title="National Association of Realtors&nbsp;" target="_blank" rel="noopener noreferrer">National Association of Realtors </a>(NAR), homes continue to sell quickly – on average, they’re selling in just 17 days. As a seller, that’s great news for you.
Average days on market is a strong indicator of buyer <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" title="demand">demand</a>. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.
2. Buyers Are Willing To Compete for Your House
In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they’re competitive ones. The graph below shows how the average number of offers right now compares to previous years:<a href="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99211" src="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Buyers today know <a href="https://www.mykcm.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap/" title="bidding wars">bidding wars</a> are a likely outcome, and they’re coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current <a href="https://www.mykcm.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/" title="inventory of homes">inventory of homes</a> for sale. Though it’s improving, it remains at near-record lows. The <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-July" title="chart" target="_blank" rel="noopener noreferrer">chart</a> below shows how today’s low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.<a href="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99212" src="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re looking to take advantage of buyer demand and get the most attention for your house, <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" title="selling now">selling now</a> before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through <a href="https://www.mykcm.com/2021/07/09/your-home-equity-can-take-you-places-infographic/" title="growing equity">growing equity</a>. You can leverage that equity, plus current <a href="https://www.mykcm.com/2021/08/23/what-do-experts-say-about-todays-mortgage-rates/" title="low mortgage rates">low mortgage rates</a>, to power your move now. But these near-historic low rates won’t last forever.
Experts forecast interest rates will rise. In their forecast, Freddie Mac <a href="http://www.freddiemac.com/fmac-resources/research/pdf/2021Q3-Forecast-04.pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.”
When rates rise, even modestly, it’ll impact your monthly payment and by extension your purchasing power.
Bottom Line
Don’t delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you’re thinking about making a move, let’s chat about why it makes sense to list your house now.2021-09-07T10:49:00-07:002021-09-07T10:50:03-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:6017Why 2021 Is Still the Year To Sell Your HouseIf you’re trying to decide whether or not to <a href="https://www.mykcm.com/2021/08/06/ready-to-sell-but-dont-know-where-youll-go-infographic/" title="sell&nbsp;your house">sell your house</a>, this is the time to think seriously about making a move. Fannie Mae’srecent <a href="https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey" title="Home Purchase Sentiment Index" target="_blank" rel="noopener noreferrer">Home Purchase Sentiment Index</a> (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers (see graph below). Today, the majority of consumers, 75 percent, say it’s a good time to <a href="https://www.mykcm.com/2021/08/09/the-community-and-economic-impacts-of-a-home-sale/" title="sell a house">sell a house</a>.<a href="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99135" src="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png" alt="Why 2021 Is Still the Year To Sell Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png 960w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Why is sellers sentiment up year-over-year?
The higher good time to sell sentiment has to do with today’s <a href="https://www.mykcm.com/2021/07/22/todays-real-estate-market-explained-through-4-key-trends/" title="market conditions">market conditions</a>, specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand.
According to <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-july" title="the latest data" target="_blank" rel="noopener noreferrer">the latest data</a> from the National Association of Realtors (NAR), we’re still firmly in a <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a> because housing supply is well below a balanced norm (shown in the graph below).
<a href="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99134" src="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png" alt="Why 2021 Is Still the Year To Sell Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png 960w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Clearly, the scales are tipped in a seller’s favor today. But while <a href="https://www.mykcm.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/" title="housing supply">housing supply</a> is undeniably low, the right side of the graph shows how the inventory situation is improving little by little each month as more sellers list their homes for sale.
As a seller, that means each month, buyers have more options to pick from. By extension, that means your house may get less buyer attention with time. Danielle Hale, Chief Economist for realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-31-2021/" title="explains it like this" target="_blank" rel="noopener noreferrer">explains it like this</a>:
“More homeowners continue to list homes for sale compared to a year ago… Notably, while new listings continue to lag behind a more ‘normal’ 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.”
So, what’s that mean for you?
If you’ve been waiting for the perfect time to sell, there may not be a better chance than right now. Inventory is gradually increasing each month, so selling sooner rather than later will help you maximize your <a href="https://www.mykcm.com/2021/08/04/sellers-make-todays-home-price-appreciation-work-for-you/" title="home’s potential">home’s potential</a>.
Bottom Line
If you’re planning to sell your house, 2021 is still the year to do it. The unique mix of low supply and high demand won’t last forever. Let’s connect to discuss what you need to do now to sell your house and take advantage of this sellers’ market.2021-08-26T09:05:00-07:002021-08-26T09:06:44-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5905A Look at Housing Supply and What It Means for SellersOne of the hottest topics of conversation in today’s real estate market is the <a href="https://www.mykcm.com/2021/06/15/hope-is-on-the-horizon-for-todays-housing-shortage/" title="shortage of available homes">shortage of available homes</a>. Simply put, there are many more potential buyers than there are homes for sale. As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change.
While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.
Where Did the Shortage Come From?
It’s not just today’s high buyer demand. Our low supply goes hand-in-hand with the number of new homes built over the past decades. According to Sam Khater, VP and Chief Economist at <a href="http://www.freddiemac.com/perspectives/sam_khater/20210415_single_family_shortage.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”
Data in a <a href="https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf" title="recent report" target="_blank" rel="noopener noreferrer">recent report</a> from the National Association of Realtors (NAR) tells the same story. New home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off (see graph below):
<a href="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-98794" src="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png" alt="A Look at Housing Supply and What It Means for Sellers | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The same NAR report elaborates on the impact of this below-average pace of construction:
“. . . the underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years.”
“Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year. . . .”
That means if we build even more new houses than the norm every year, it’ll still take a decade to close the underbuilding gap contributing to today’s supply-and-demand mix. Does that mean today’s ultimate <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="sellers’ market">sellers’ market</a> is here to stay?
We’re already starting to see an increase in <a href="https://www.mykcm.com/2021/07/05/home-builders-ramp-up-construction-based-on-demand/" title="new home construction">new home construction</a>, which is great news. But newly built homes can’t bridge the supply gap we’re facing right now on their own. In the <a href="https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf" title="State of the Nation’s Housing 2021 Report" target="_blank" rel="noopener noreferrer">State of the Nation’s Housing 2021 Report</a>, the Joint Center for Housing Studies of Harvard University (JCHS) says:
“…Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease short-term supply constraints. To meet today’s strong demand, more existing single-family homes must come on the market.”
Early Indicators Show More Existing-Home Inventory Is on Its Way
When we look at existing homes, the latest reports signal that <a href="https://www.mykcm.com/2021/07/14/housing-supply-is-rising-what-does-that-mean-for-you/" title="housing supply is growing">housing supply is growing</a> gradually month-over-month. This uptick in existing homes for sale shows things are beginning to shift. Based on recent data, <a href="https://twitter.com/odetakushi/status/1407344750534041615" title="Odeta Kushi" target="_blank" rel="noopener noreferrer">Odeta Kushi</a>, Deputy Chief Economist at First American, has this to say:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/real-estate-today" title="echoes that sentiment:" target="_blank" rel="noopener noreferrer">echoes that sentiment:</a>
“As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner.”
So, what does all of this mean for you? Just because life is starting to return to normal, it doesn’t mean you missed out on the best time to sell. It’s not too late to take advantage of <a href="https://www.mykcm.com/2021/06/16/dont-wait-to-sell-your-house/" title="today’s sellers’ market">today’s sellers’ market</a> and use <a href="https://www.mykcm.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/" title="rising equity">rising equity</a> and <a href="https://www.mykcm.com/2021/07/19/what-you-should-do-before-interest-rates-rise/" title="low interest rates">low interest rates</a> to make your next move.
Bottom Line
It’s still a great time to sell. Even though housing supply is starting to trend up, it’s still hovering near historic lows. Let’s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.2021-07-27T09:27:00-07:002021-07-27T09:38:50-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:58634 Major Incentives To Sell This SummerWhile the housing market forecast for the <a href="https://www.mykcm.com/2021/06/30/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year/" title="second half">second half</a> of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.
1. Your House Will Likely Sell Quickly
According to the most recent <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> released by the National Association of Realtors (NAR), homes continue to sell quickly. The report notes homes are selling in an average of just 17 days.
Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.
2. Buyers Are Willing To Compete for Your House
In addition to selling fast, homes are receiving multiple offers. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="reports" target="_blank" rel="noopener noreferrer">reports</a> sellers are seeing an average of 5 offers, and these offers are competitive ones. Shawn Telford, Chief Appraiser at CoreLogic, <a href="https://www.seattletimes.com/business/homebuyers-increasingly-willing-to-pay-above-asking-price/" title="said" target="_blank" rel="noopener noreferrer">said</a> in a recent interview:
“The frequency of buyers being willing to pay more than the market data supports is increasing.”
This confirms buyers are ready and willing to enter <a href="https://www.mykcm.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/" title="bidding wars">bidding wars</a> for your home. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. As NAR <a href="https://www.globenewswire.com/news-release/2021/06/22/2251149/0/en/Existing-Home-Sales-Experience-Slight-Skid-of-0-9-in-May.html" title="details" target="_blank" rel="noopener noreferrer">details</a>:
“Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April’s 2.4-month supply but down from 4.6-months in May 2020.”
There are signs, however, that more homes are coming to market. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1407344750534041615" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
If you’re looking to take advantage of buyer demand and get the most <a href="https://www.mykcm.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/" title="attention">attention</a> for your house, selling now before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.
If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your <a href="https://www.mykcm.com/2021/03/30/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget/" title="purchasing power">purchasing power</a>.
But these near-historic low rates won’t last forever. Experts forecast interest rates will increase in the coming months. Nadia Evangelou, Senior Economist and Director of Forecasting at NAR, <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-june-17-2021" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”
As interest rates rise, even modestly, it could influence buyer demand and your purchasing power. If you’ve been waiting for the <a href="https://www.mykcm.com/2021/05/06/why-waiting-to-buy-a-home-could-cost-you-a-small-fortune/" title="best time to sell">best time to sell</a> to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.
Bottom Line
With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, let’s connect today to discuss why it makes sense to list your home sooner rather than later.2021-07-12T09:43:00-07:002021-07-12T09:44:45-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5860Selling Your House? Make Sure You Price It Right.There’s no denying we’re in a <a href="https://www.mykcm.com/2021/06/16/dont-wait-to-sell-your-house/" title="sellers’ market">sellers’ market</a>. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-05-realtors-confidence-index-06-22-2021.pdf" title="Realtors Confidence Index Survey" target="_blank" rel="noopener noreferrer">Realtors Confidence Index Survey</a> from the National Association of Realtors (NAR):
Homes typically sell within 17 days (compared to 26 days one year ago).
The average home sold has five offers to pick from.
54% of offers are over the asking price.
Because so many buyers are competing for so few homes, bidding wars are driving up <a href="https://www.mykcm.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/" title="home prices">home prices</a>. According to an average of leading expert projections, existing home prices are expected to increase by <a href="https://www.mykcm.com/2021/06/30/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year/" title="8.9%">8.9%</a> this year.
Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential.
Why Pricing Your House Right Matters
Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on <a href="https://www.mykcm.com/2021/05/24/3-things-to-prioritize-when-selling-your-house/" title="the sale.">the sale.</a> While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.
Instead, focus on setting a price that’s fair. <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" title="Real estate professionals">Real estate professionals</a> know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.
<a href="https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98498" src="https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1.png" alt="Selling Your House? Make Sure You Price It Right. | MyKCM" width="600" height="214" srcset="https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1.png 2459w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-600x214.png 600w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-1024x366.png 1024w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-768x275.png 768w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-1536x549.png 1536w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-2048x732.png 2048w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-100x36.png 100w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-1046x374.png 1046w, https://files.mykcm.com/2021/07/07135038/20210708-MEM-Eng-1-1484x530.png 1484w" sizes="(max-width: 600px) 100vw, 600px" /></a>
When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.
Bottom Line
When it comes to pricing your house, working with a local real estate professional is essential. Let’s connect so we can optimize your exposure, your timeline, and the return on your investment, too.2021-07-09T09:38:00-07:002021-07-09T09:39:44-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5718What’s Motivating People To Move Right Now?This year, Americans are moving for a variety of reasons. The health crisis has truly reshaped our lifestyles and our needs. Spending so much more time in our current homes has driven many people to reconsider what homeownership means and what they find most valuable in their living spaces.
According to the <a href="https://www.unitedvanlines.com/newsroom/movers-study-2020" title="2020 Annual National Movers Study" target="_blank" rel="noopener noreferrer">2020 Annual National Movers Study</a>:
“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”
With a new perspective on homeownership, here are some of the reasons people are reconsidering where they live and making moves right now.
1. Working from Home
Remote work became the new norm, and for some, it’s persisting longer than initially expected. Many in the workforce today are discovering they don’t need to live so close to the office anymore and they can get more for their money if they move a little further outside the city limits. <a href="https://www.apartmentlist.com/research/remote-work-wealthy-americans-moving-again" title="Apartment List" target="_blank" rel="noopener noreferrer">Apartment List</a> notes:
“The COVID pandemic has sparked a rebound in residential migration: survey data suggest that 16 percent of American workers moved between April 2020 and April 2021, up from 14 percent in 2019 and the first increase in migration in over a decade… One of the major drivers in this trend is remote work, which expanded greatly in response to COVID and will remain prevalent even after the pandemic wanes. No longer tethered to a physical job site, remote workers were 53 percent more likely to move this past year than on-site workers.”
If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work very challenging.
2. Room for Fitness & Activities
Staying healthy and active is a top priority for many Americans, and dreams of having space for a home gym are growing stronger. A recent <a href="https://runrepeat.com/fitness-trends" title="survey" target="_blank" rel="noopener noreferrer">survey</a> of 4,538 active adults from 122 countries noted the three fastest-growing fitness trends amongst active adults:
At-home fitness equipment (up 50%)
Personal trainers/nutritionists (up 48%)
Online fitness courses, classes, and subscriptions (up 17%)
Having room to maintain a healthy lifestyle at home – physically and mentally – may prompt you to consider a new place to live that includes space for at-home workouts, hobbies, and activities for your household.
3. Outdoor Space
<a href="https://www.bhg.com/home-improvement/porch/outdoor-rooms/2021-outdoor-living-trends/" title="Better Homes &amp; Gardens" target="_blank" rel="noopener noreferrer">Better Homes & Gardens</a> recently released the outdoor living trends for this year, and three of them are:
Outdoor Kitchens: 60% of homeowners are looking to add outdoor kitchens.
Edible Garden: Millions of people began gardening during the pandemic . . . to supplement pantries with homegrown fruits, vegetables, and herbs.
Secluded Spaces: As outdoor activity increases, so does the need for privacy.
You may not, however, currently have the space you need for these designated areas – inside or out.
Bottom Line
If you’re clamoring for more room to accommodate your changing needs, making a move may be your best bet, especially while you can take advantage of today’s <a href="https://www.mykcm.com/2021/05/05/are-interest-rates-expected-to-rise-over-the-next-year/" title="low mortgage rates">low mortgage rates</a>. It’s a great time to get more home for your money, just when you need it most.2021-06-03T10:37:00-07:002021-06-03T10:39:21-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:56703 Things to Prioritize When Selling Your HouseToday’s housing market is full of unprecedented <a href="https://www.mykcm.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/" title="opportunities">opportunities</a>. High buyer demand paired with record-low housing inventory is creating the ultimate <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="sellers’ market">sellers’ market</a>, which means it’s a fantastic time to <a href="https://www.mykcm.com/2021/05/10/3-graphs-showing-why-you-should-sell-your-house-now/" title="sell your house">sell your house</a>. However, that doesn’t mean sellers are guaranteed success no matter what. There are still some key things to know so you can avoid costly mistakes and win big when you make a move.
1. Price Your House Right
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing <a href="https://www.mykcm.com/2021/05/11/experts-say-home-prices-will-continue-to-appreciate/" title="price">price</a>. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.
2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average time a homeowner owned their home, or their tenure, has increased from 5 to 10 years (See graph below):
<a href="https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98080" src="https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1.jpg" alt="3 Things To Prioritize When Selling Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2021/05/20154810/20210524-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you purchased or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from that sentimental value.
For some homeowners, that connection makes it even harder to separate the emotional value of the house from the fair market price. That’s why you need a <a href="https://www.mykcm.com/2021/04/06/dont-sell-on-your-own-just-because-its-a-sellers-market/" title="real estate professional">real estate professional</a>to help you with the negotiations along the way.
3. Stage Your House Properly
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes. However, not all buyers will feel the same way about your design and personal touches. That’s why it’s so important to make sure you <a href="https://www.mykcm.com/2021/04/26/4-tips-to-maximize-the-sale-of-your-house/" title="stage">stage</a> your house with the buyer in mind.
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage, clean, and declutter so they can visualize their own dreams as they walk through each room. A real estate professional can help you with tips to get your home ready to stage and sell.
Bottom Line
Today’s sellers’ market might be your <a href="https://www.mykcm.com/2021/05/04/4-big-incentives-for-homeowners-to-sell-now/" title="best chance">best chance</a> to make a move. If you’re considering selling your house, let’s connect today so you have the expert guidance you need to navigate through the process and prioritize these key elements.2021-05-24T15:19:00-07:002021-05-24T15:20:18-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:55794 Big Incentives for Homeowners to Sell NowThe housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports that there were <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-02-2021-single-family-only-2021-03-22.pdf" title="410,000" target="_blank" rel="noopener noreferrer">410,000</a> fewer single-family homes for sale this March than in March of 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that <a href="https://www.mykcm.com/2021/03/04/is-it-a-good-time-to-sell-my-house/" title="selling">selling</a> their homes could be challenging for several reasons.
Recently, Homes.com released the findings of a <a href="https://www.homes.com/blog/2021/04/how-can-sellers-unlock-the-housing-market/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s actually happening in the housing market today.
1. Homeowners don’t know if they’ll be able to secure their next home before selling.
In negotiations, <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="leverage">leverage</a> is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on the ability to award benefits or eliminate costs on the other side.
In today’s market, buyers have compelling reasons to purchase a home now:
To own a home of their own
To buy before prices continue to appreciate
To secure a mortgage at a historically low rate, while they last
These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a good price. However, this leverage may also be used to negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller finds a new home or has one built.
This gives the buyer what they want while also giving the seller what they need. It’s a true win-win negotiation.
2. Homeowners don’t know if their current home will sell for the asking price or top market price.
This is the perfect time to maximize profits while selling a house. NAR just released a <a href="https://www.nar.realtor/blogs/economists-outlook/how-are-buyers-coping-in-a-highly-competitive-housing-market" title="study" target="_blank" rel="noopener noreferrer">study</a> showing that bidding wars are at an all-time high. The study reveals that when comparing the first quarter of last year to the first quarter of this year, the number of offers on homes for sale doubled from an average of 2.4 to 4.8 offers.
Whenever there’s a bidding war, the price of the item for sale escalates. Bloomberg recently <a href="https://www.bloomberg.com/news/articles/2021-04-09/home-prices-soar-in-frenzied-u-s-market-drained-of-supply?sref=BRvilyBN" title="reported" target="_blank" rel="noopener noreferrer">reported</a>:
“For the first time ever, the average U.S. home is selling for above its list price.”
If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.
3. Homeowners don’t know if they will get an offer without their home requiring work or updates.
Again, leverage is the greatest strength a seller has in this market. Due to the lack of homes for sale, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after.
A recent <a href="https://www.mykcm.com/2021/03/18/to-renovate-or-not-to-renovate-before-you-sell/" title="post">post</a> on whether or not to renovate before selling notes:
“It may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.”
If a seller is worried about doing work or updates on their home, they must realize that today’s historically low inventory likely renders these projects less critical to the sale of the house.
4. Homeowners don’t know if they can have a quick closing process.
When speed is important, there are two points sellers should look at:
The time it takes to find a buyer for the home
The time it takes to close the transaction
In the latest <a href="https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a>, NAR explains:
“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. Eighty-three percent of the homes sold in March 2021 were on the market for less than a month.”
Eighteen days is fast, and it’s a new record. Here are the days the average house is on the market in each state:
<a href="https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97966" src="https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1.png" alt="4 Big Incentives for Homeowners to Sell Now | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/05/03154108/20210504-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Regarding the time it will take to close the transaction, <a href="https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march" title="all-cash sales" target="_blank" rel="noopener noreferrer">all-cash sales</a> accounted for 23% of all home purchase transactions in March. All-cash sales can usually be closed in thirty days.
If a mortgage is necessary, the most recent <a href="https://static.elliemae.com/pdf/origination-insight-reports/ICE_OIR_MAR2021.pdf" title="Origination Insight Report" target="_blank" rel="noopener noreferrer">Origination Insight Report</a> from Ellie Mae shows:
“Time to close all loans decreased in March. The average time to close a purchase fell to 51 days, down from 53 the month prior.”
If you’re looking for a quick closing process, there’s never been a market in which the two-step process (finding a buyer and closing the deal) has taken less time.
Bottom Line
Selling your house can be daunting, especially in a fast-paced market. However, the fact that we’re in such a strong sellers’ market clearly eliminates many common concerns. Let’s connect today so you can learn more about the opportunities for homeowners who are ready to sell.2021-05-04T11:37:00-07:002021-05-04T11:38:13-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:54904 Tips to Maximize the Sale of Your HouseHomeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This gives homeowners <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="leverage">leverage</a> to sell for the best possible terms, and it’s fueling a steady rise in home prices.
In such a hot market, houses are selling quickly. According to the National Association of Realtors (NAR), homes are typically on the market for just <a href="https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march" title="18" target="_blank" rel="noopener noreferrer">18</a> short days. Despite the speed and opportunity for sellers, there are still steps you can take to prep your house to shine so you get the greatest possible return.
1. Make Buyers Feel at Home
One of the ways to make this happen is to take time to declutter. Pack away any personal items like pictures, awards, and sentimental belongings. The more neutral and tidy the space, the easier it is for a buyer to picture themselves living there. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-profile-of-home-staging-report-04-06-2021.pdf" title="2021 Profile of Home Staging" target="_blank" rel="noopener noreferrer">2021 Profile of Home Staging</a> by NAR:
“82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”
Not only will your house potentially attract the attention of more buyers and likely sell quickly, but the same report also notes:
“Eighteen percent of sellers’ agents said home staging increased the dollar value of a residence between 6% and 10%.”
As Jessica Lautz, Vice President of Demographics and Behavior Insights for NAR, <a href="https://magazine.realtor/daily-news/2021/04/06/nar-survey-design-shows-raise-buyer-expectations" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Staging a home helps consumers see the full potential of a given space or property…It features the home in its best light and helps would-be buyers envision its various possibilities.”
2. Keep It Clean
On top of making an effort to declutter, it’s important to keep your house neat and clean. Before a buyer stops by, be sure to pick up toys, make the beds, and wash the dishes. This is one more way to reduce the number of things that can distract a buyer from the appeal of the home.
Ensure your home smells fresh and clean as well. Buyers will remember the smell of your house, and according to the same report from NAR, the kitchen is one of the most important rooms of the house to focus on if you want to attract more buyers.
3. Give Buyers Access
Buyers are less likely to make an offer on your house if they aren’t able to easily schedule a time to check it out. If your home is available anytime, that opens up more opportunities for multiple buyers to go from curious to eager. It also allows buyers on tight schedules to still get in to see your house.
While health continues to be a great concern throughout the country, it’s important to work with your agent to find the best <a href="https://www.mykcm.com/2020/11/13/tips-to-sell-your-house-safely-right-now-infographic/" title="safety measures">safety measures</a> and digital practices for your listing. This will drive visibility and create access options that also keep everyone in the process safe.
4. Price It Right
Even in a sellers’ market, it’s crucial to set your house at the <a href="https://www.mykcm.com/2020/12/28/why-its-important-to-price-your-house-right-today/" title="right price">right price</a> to maximize selling potential. Pricing your house too high is actually a detriment to the sale. The goal is to drive high attention from competing buyers and let bidding wars push the final sales price up.
Work with your trusted real estate professional to determine the best list price for your house. Having an expert on your side in this process is truly essential.
Bottom Line
If you want to sell on your terms, in the least amount of time, and for the best price, today’s market sets the stage to make that happen. Let’s connect today to determine the best ways to maximize the sale of your house this year.2021-04-26T10:54:00-07:002021-04-26T10:55:29-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5413Don’t Sell on Your Own Just Because It’s a Sellers’ MarketIn a <a href="https://www.mykcm.com/2021/02/26/its-a-sellers-market-infographic/" title="sellers’ market">sellers’ market</a>, some homeowners might be tempted to try to <a href="https://www.mykcm.com/2021/03/08/5-reasons-to-sell-your-house-this-spring-2/" title="sell">sell</a> their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as <a href="https://www.mykcm.com/2021/01/28/what-record-low-housing-inventory-means-for-you/" title="low">low</a> as it is today, buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to <a href="https://www.mykcm.com/2020/12/30/why-selling-your-house-on-your-own-in-2021-is-a-mistake/" title="FSBO">FSBO</a>. As a result, some sellers think selling their house will be a <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="breeze">breeze</a> and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.
According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="Profile of Home Buyers and Sellers" target="_blank" rel="noopener noreferrer">Profile of Home Buyers and Sellers</a> published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.
The NAR report explains:
“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):
<a href="https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97703" src="https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1.png" alt="Don’t Sell on Your Own Just Because It’s a Sellers’ Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/04/01150053/20210406-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
That’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. An agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.
Bottom Line
If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect to discuss <a href="https://www.mykcm.com/2021/01/08/reasons-to-hire-a-real-estate-professional-infographic/" title="how">how</a> a trusted advisor can help you, especially in today’s market.2021-04-07T06:32:00-07:002021-04-07T09:33:12-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5091Selling Your Home With Hillshire Realty Group2021-03-09T08:12:00-07:002021-03-09T11:16:20-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:50785 Reasons to Sell Your House This Spring 2021When selling a house, most homeowners hope for a quick and profitable transaction that puts them in a position to make a great move. If you’re waiting for the best time to win as a seller, the market is calling your name this spring. Here are five reasons why this is the perfect time to sell your house if you’re ready.
1. There’s high demand from homebuyers.
Buyer demand is strong right now, and buyers are active in the market. ShowingTime, which tracks the average number of buyer showings on residential properties, recently announced that buyer showings are up 51.5% compared to this time last year. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, <a href="https://www.showingtime.com/blog/january-2021-showing-index-results/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory…On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”
When your house is positioned to get a ton of attention from competitive buyers, you’re in the best spot possible as the seller.
2. There aren’t enough houses for sale.
Purchaser demand is so high, the market is <a href="https://www.mykcm.com/2021/02/22/where-have-all-the-houses-gone/" title="running out">running out</a> of available houses for sale. Recently, realtor.com <a href="https://www.realtor.com/research/february-2021-data/" title="reported" target="_blank" rel="noopener noreferrer">reported</a>:
“Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6% drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.”
The National Association of Realtors (NAR) also <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="reveals" target="_blank" rel="noopener noreferrer">reveals</a> that, while home sales are skyrocketing, the inventory of existing homes for sale is continuing to drop dramatically. Houses are essentially selling as fast as they’re hitting the market – in fact, NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="reports" target="_blank" rel="noopener noreferrer">reports</a> that the average house is on the market for only 21 days.
It’s this imbalance between high buyer demand and a low supply of houses for sale that gives sellers such an advantage. A seller will always negotiate the best deal when demand is high and supply is low. That’s exactly what’s happening in the real estate market today.
3. You have a lot of leverage in today’s market.
Clearly, many more people are interested in buying than selling this spring, creating the ultimate <a href="https://www.mykcm.com/2021/02/26/its-a-sellers-market-infographic/" title="sellers’ market">sellers’ market</a>. When this happens, homeowners in a position to sell have the upper hand in negotiations.
According to NAR, agents are <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-01-realtors-confidence-index-02-19-2021.pdf" title="reporting" target="_blank" rel="noopener noreferrer">reporting</a> an average of 3.7 offers per house and an increase in bidding wars. As a seller, this means the ball is in your court – so much so that you can use your <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="leverage">leverage</a> to negotiate the best possible contract. Demand is there, and now is the perfect time to sell for the most favorable terms.
4. It’s a great way to use your home equity.
According to the latest <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="data" target="_blank" rel="noopener noreferrer">data</a> from CoreLogic, as of the third quarter of 2020, the average homeowner gained $17,000 in equity over the past year, and that number continues to grow as <a href="https://www.mykcm.com/2021/03/02/home-prices-what-happened-in-2020-what-will-happen-this-year/" title="home values">home values</a> appreciate. <a href="https://www.mykcm.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/" title="Equity">Equity</a> is a type of forced savings that grows during your time as a homeowner and can be put toward bigger goals like buying your next dream home.
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/housing-market-potential-reaches-highest-level-since-2007" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
5. It’s a chance to find a home that meets your needs.
So much has changed over the past year, including what many of us need in a home. Spending extra time where we currently live is enabling many of us to re-evaluate homeownership and what we find most important in a home.
Whether it’s a house that has the features suited to working remotely, space for virtual or hybrid schooling, a home gym or theater, or something else, selling this spring gives you a chance to make a move and <a href="https://www.mykcm.com/2021/02/25/are-there-going-to-be-more-homes-to-buy-this-year/" title="find">find</a> the home of your dreams.
Bottom Line
Today’s housing market belongs to the sellers. If you’ve considered making a move but have been waiting for the right market conditions, your wait may be over. Let’s connect so you’ll be positioned to win when you sell your house this spring.2021-03-08T10:38:00-07:002021-03-08T13:44:33-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5011Is It A Good Time To Sell My House?Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling <a href="https://www.mykcm.com/2020/11/13/tips-to-sell-your-house-safely-right-now-infographic/" title="safely">safely</a>. The latest Home Purchase Sentiment Index (<a href="https://www.fanniemae.com/media/38211/display" title="HPSI" target="_blank" rel="noopener noreferrer">HPSI</a>) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.
Doug Duncan, Vice President and Chief Economist at Fannie Mae, <a href="https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.”
Normally, spring is the busiest season in the housing market – the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:
“We will pay close attention to see if this newfound optimism develops into a trend.”
What does this mean if you’re thinking of selling your house?
The fact that there are so few houses available for sale today is one driver that’s encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/newsroom/existing-home-sales-tick-up-0-6-in-january" title="states" target="_blank" rel="noopener noreferrer">states</a>:
“Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).”
With so few homes available to buy, your house will be more likely to rise to the top of an eager purchaser’s wish list in this competitive market. Today’s high buyer <a href="https://www.mykcm.com/2021/02/22/where-have-all-the-houses-gone/" title="activity">activity</a> is creating upward pressure on home <a href="https://www.mykcm.com/2021/03/02/home-prices-what-happened-in-2020-what-will-happen-this-year/" title="prices">prices</a> and more multiple-offer scenarios. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-01-realtors-confidence-index-02-19-2021.pdf" title="Realtors Confidence Index Survey" target="_blank" rel="noopener noreferrer">Realtors Confidence Index Survey</a> from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.
In this kind of <a href="https://www.mykcm.com/2021/02/26/its-a-sellers-market-infographic/" title="sellers’ market">sellers’ market</a>, you have a huge <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="advantage">advantage</a> in the process. And here’s another win – you can also use your <a href="https://www.mykcm.com/2021/01/06/the-importance-of-home-equity-in-building-wealth/" title="equity">equity</a> toward a down payment on a new home when you move.
Wondering where you’ll go if you try to move while it’s so challenging to find a home to buy? Well, in many areas, there are more homes available at the higher end of the <a href="https://www.mykcm.com/2021/02/10/the-luxury-market-is-attracting-buyers-in-2021/" title="market">market</a>, so finding a move-up home may be less of an issue if you’re ready to search for your dream home this spring.
Bottom Line
If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Let’s connect today to get the process started.2021-03-04T11:20:00-07:002021-03-04T14:27:11-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4730Why Right Now May Be the Time to Sell Your HouseThe housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time <a href="http://www.freddiemac.com/pmms/" title="lows" target="_blank" rel="noopener noreferrer">lows</a>.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2020-11-realtors-confidence-index-12-22-2020.pdf" title="Realtors Confidence Index Survey" target="_blank" rel="noopener noreferrer">Realtors Confidence Index Survey</a> from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:<a href="https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97117" src="https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1.jpg" alt="Why Right Now May Be the Time to Sell Your House | MyKCM" width="600" height="300" srcset="https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1-600x300.jpg 600w, https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1-768x384.jpg 768w, https://files.mykcm.com/2021/01/13171442/20210114-MEM-Eng-1-100x50.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.
NAR also just <a href="https://www.nar.realtor/newsroom/existing-home-sales-decrease-2-5-in-november" title="reported" target="_blank" rel="noopener noreferrer">reported</a> that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of <a href="https://www.mykcm.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/" title="inventory">inventory</a> – significantly higher than it is today.
What does this mean for buyers and sellers?
Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since <a href="https://www.mykcm.com/2020/10/16/how-to-prepare-for-a-bidding-war-infographic/" title="bidding wars">bidding wars</a> are more common when so few houses are available for sale.
Sellers may not want to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.2021-01-14T06:36:00-07:002021-01-14T11:05:10-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4691Why Not to Wait Until Spring to Make a MoveThe housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.
1. Mortgage Rates Are Historically Low
In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:
“Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.”
Essentially, it’s less expensive to borrow money for a home loan today than it has been in <a href="https://www.mykcm.com/2020/12/22/the-difference-a-year-makes-for-homeownership/" title="years past">years past</a>. Although mortgage rates are expected to remain relatively <a href="https://www.mykcm.com/2020/12/18/2021-housing-forecast-infographic/" title="low">low</a> in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a home loan. So, this is a huge opportunity to capitalize on right now before mortgage rates start to rise.
2. Equity Is Growing
According to <a href="https://www.realestateconsulting.com/" title="John Burns Consulting" target="_blank" rel="noopener noreferrer">John Burns Consulting</a>, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear.
In addition, <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a> notes the average <a href="https://www.mykcm.com/2020/12/17/homeowner-equity-increases-an-astonishing-1-trillion/" title="equity">equity</a> homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season.
3. Home Prices Are Appreciating
According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more <a href="https://www.mykcm.com/2020/12/09/are-home-prices-headed-toward-bubble-territory/" title="moderate">moderate</a> home price growth than last year, but still moving in an upward direction through 2021.
Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment.
4. There Are Not Enough Homes for Sale
With today’s <a href="https://www.mykcm.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/" title="low inventory">low inventory</a> of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among <a href="https://www.mykcm.com/2020/12/15/the-holidays-arent-stopping-homebuyers-this-year/" title="buyers">buyers</a>, so homes are selling quickly.
Making a move while so many buyers are looking for homes to purchase may mean your house rises to the top of the buyer pool. Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine.
Bottom Line
If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect to get you set up for homebuying success in the new year.2021-01-06T07:54:00-07:002021-01-06T10:55:55-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:46783 Must-Dos' When Selling Your House This YearIt’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.
When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.
1. Price Your Home Right
When <a href="https://www.mykcm.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/" title="inventory">inventory</a> is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the <a href="https://www.mykcm.com/2020/12/28/why-its-important-to-price-your-house-right-today/" title="price">price</a> after the appraisal. A real estate professional will help you set the true value of your home.
2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):<a href="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96876" src="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg" alt="3 Must-Do’s When Selling Your House This Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.
3. Stage Your Home Properly
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.
Bottom Line
Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, let’s connect so you have the help need to navigate through the process while prioritizing these must-do’s.2021-01-04T08:15:00-07:002021-01-04T11:18:42-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4669Why Selling Your House on Your Own in 2021 is a MistakeThere are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner (FSBO), it’s critical to consider the following items.
1. Your Safety Is a Priority
Your safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours, real estate professionals are equipped to follow the latest industry <a href="https://www.nar.realtor/coronavirus-a-guide-for-realtors" title="standards" target="_blank" rel="noopener noreferrer">standards</a> recommended by the National Association of Realtors (NAR) to help protect you and your potential buyers.
2. A Powerful Online Strategy Is a Must to Attract a Buyer
Recent <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="studies" target="_blank" rel="noopener noreferrer">studies</a> from NAR have shown that, even before COVID-19, the first step 43% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 97%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house.
3. There Are Too Many Negotiations
Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:
The buyer, who wants the best deal possible
The buyer’s agent, who solely represents the best interest of the buyer
The inspection company, which works for the buyer and will almost always find challenges with the house
The appraiser, if there is a question of value
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.
4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment. You need someone who’s working with lenders every day to guarantee your buyer makes it to the closing table.
5. FSBOing Is Becoming More Difficult from a Legal Standpoint
The documentation involved in the selling process is growing dramatically as more and more disclosures and regulations become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="8%" target="_blank" rel="noopener noreferrer">8%</a> over the last 20+ years.
6. You Net More Money When Using an Agent
Many homeowners think they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.
A <a href="https://collateralanalytics.com/wp-content/uploads/2017/08/CA-RESEARCH-Saving-Real-Estate-Commissions-at-Any-Price.pdf" title="study" target="_blank" rel="noopener noreferrer">study</a> by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”<br />
The more buyers that view a home, the greater the chance a bidding war will take place, potentially driving the price higher, too.
Bottom Line
Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.2020-12-30T14:41:00-07:002020-12-30T17:45:05-07:00Caitlin Beckert