Each New Year brings different challenges for home sellers across every market. If you're looking to put your house up for sale in 2023, then check out these tips to best prepare your home for prospective buyers, rising interest rates, competition and more.
1. Cater to Millennials
According to Realtor.com’s housing Forecast, 45% of mortgage borrowers in 2019 will be millennials.
If you believe you are in a hot market or these could be your potential buyers, it might be in your best interest to cater to this group when deciding on improvements to make, wall colors, etc. Homes in the $200,000-$350,000 range are likely to be ideal targets for this group.
2. Make The Effort To Stand Out
According to the latest housing reports, more homes are expected to enter the market in 2019 compared to the past 2 years. In 2017 and 2018, homes sold quickly because of low inventory. With more options to choose from, sellers will need to make an effort to get their home to stand out.
It’s a great idea to request a home valuation early to determine how your home compares to others in the area and so you can make improvements before you sell. You can request a free home valuation here.
3. Declutter After The Holidays
Especially after the Holidays, homes can be filled with lots of gifts, holiday decor, and more. Although these items are meaningful to you, they may turn prospective buyers off.
After all, they want to picture your home as theirs, but that’s hard to do with all of your things in it. The more you can declutter and remove miscellaneous items, the better. This way the buyers can transform your home into their future dream home.
4. Price competitively to offset rising interest rates
Interest rates have been higher in 2018, with many economists predicting that they'll move even higher in 2019 following anticipated monetary changes by the Federal Reserve. As a result, buyers are going to be even more price-conscious than before since getting a mortgage will be more expensive for them.
According to Trulia, nearly 20% of renters who want to buy say that rising interest rates are their biggest obstacle to buying a home. Although you can’t control rising interest rates, you should keep their impact in mind when pricing your home. Pricing your home competitively instead of overpricing to "leave room for negotiation" can help engage more buyers.
According to data from Zillow, pricing competitively can help your home sell faster and for more money compared to sellers who overprice.
Other Quick Tips
In today's competitive real estate market, knowing the right strategies to sell your house quickly and for the best price is essential.
Determine the right asking price
Conduct a comparative market analysis by comparing your home to recently sold properties in your area. This will help you establish a reasonable home sale's price that attracts buyers. You can enlist the help of real estate agents who have access to the multiple listing service to get accurate data for your analysis. Remember, an overpriced home may stagnate on the market, while a well-priced home can generate multiple offers.
Highlight your home's best features|
To entice potential buyers, take high-quality photos of your property, showcasing natural light and decluttered spaces. Consider spending a few hundred dollars on minor repairs and improvements to boost your home's appeal.
Choose a great real estate agent
A good real estate agent can make all the difference in your home selling process. Look for agents who are members of the National Association of Realtors and have a proven track record in your local real estate market. They can help you navigate the complexities of the home sale, from negotiations to closing costs.
Understand the tax implications
When selling your home, be aware of the potential capital gains tax implications. If you've lived in the property for at least two years, you may be eligible for an exclusion on capital gains tax. Consult a real estate attorney or tax professional to understand your personal finance situation and the tax implications of selling your home.
Maximize your property's exposure
One key aspect of selling your home quickly is getting it in front of as many potential buyers as possible. Utilize the multiple listing service (MLS) to advertise your home, as this will increase its visibility among real estate agents and potential buyers. Additionally, consider using social media and online platforms to market your property, reaching a wider audience.
Offer incentives to the buyer's agent
To encourage buyer's agents to bring their clients to your property, consider offering a slightly higher commission or other incentives. This can help your home stand out from the competition and may lead to a quicker sale.
Prepare for the home inspection
A thorough home inspection is an important part of the home selling process, as it can uncover potential issues that may affect the sale. Before the inspection, make sure your home is clean and presentable. Address any minor repairs or maintenance issues in advance to avoid surprises during the inspection. This can help you achieve a smoother transaction and potentially save on negotiation costs.
Bonus Tip: Sell For A 1% Listing Fee & Save Thousands On Realtor Fees
The typical commission paid to a real estate agent is 3%. On a $400,000 home, that's $12,000 in commission to your agent. However, you can save $7,500 on average by listing for a 1% listing fee while still getting the same services. Learn more here!
Conclusion
In conclusion, selling a home requires thorough preparation and knowledge of the real estate market. By determining the right asking price, highlighting your home's best features, partnering with a great real estate agent, and understanding the tax implications, you'll be well on your way to a successful home sale.
Don't forget to consider additional costs like title insurance, home inspection fees, and the remaining mortgage balance as part of the closing costs. By being well-informed and working closely with your real estate agent, you can navigate the home selling process and achieve the best possible purchase price for your property.
