Our Real Estate Blog
Purchasing a deluxe home at an affordable price may seem impossible, particularly for property buyers who are searching for a residence in a seller's market.
Lucky for you, we're here to help take the guesswork out of buying a terrific residence at a budget-friendly price, regardless of the current housing market conditions.
Now, let's take a look at three factors that homebuyers need to consider before they enter a seller's market.
1. Your Timeline
What is your homebuying timeline? Ultimately, you'll want to consider how quickly you need to relocate to a new residence. This will enable you to map out a homebuying journey that boosts your chances of getting the best results possible.
For example, if you have several months to plan ahead, you may be able to wait out a seller's market. You can pursue a wide range of residences over an extended period of time. And if you find a residence that you like, you can submit an offer on it.
On the other hand, if you need to move right away, you'll likely need to speed up the homebuying journey. In this scenario, you'll want to make the most of the time and resources at your disposal. If you can optimize the time and resources that are available, you may be better equipped than other homebuyers to discover a great home in a seller's market.
2. Your Budget
How much can you afford to spend on a home? A seller's market favors property sellers, so you'll want to do everything possible to budget appropriately and avoid the temptation to overspend to acquire a residence.
Getting pre-approved for a mortgage usually is an excellent idea. If you meet with banks and credit unions, you can learn about your mortgage options and choose a mortgage that matches your finances perfectly.
With a mortgage in hand, you can enter the housing market with realistic property buying expectations. You also may be able to narrow your home search, and as such, speed up the process of purchasing your ideal house.
3. Your Homebuying Expertise
What do you know about the housing market? In most cases, homebuyers lack real estate expertise. However, working with a real estate agent ensures you can receive comprehensive support as you navigate a seller's market.
A real estate agent is a friendly, knowledgeable housing market professional, one who will go above and beyond the call of duty to assist you during the homebuying journey.
Typically, a real estate agent will set up home showings, keep you informed about new properties as they become available and negotiate with home sellers on your behalf. He or she will even provide honest, unbiased recommendations, guaranteeing you can get the expert insights you need to make informed homebuying decisions.
When it comes to exploring houses in a seller's market, why should you be forced to leave anything to chance? Consider the aforementioned factors closely, and you can improve your chances of acquiring a stellar home without having to break your budget.
All home sellers understand that there are some costs to selling a home, but not everyone realizes what they're expected to pay for (and how much the total will be). We'll look at the most common expenses and how they might affect your budget.
Real Estate Agent Fees
This is probably the first thing that comes to mind if you're selling a home. The standard rule is anywhere between 5 to 6% of the final sale price. Not all sellers will shoulder this cost, but the majority will. So if your home sells for $300,000, you should expect to hand over at least $15,000 to be split between the buyer and seller real estate agents. Please note that commissions can be negotiable, especially if you're selling in a popular neighborhood.
While none of these costs are strictly necessary, they can help you get your home ready:
- Repairs: If you're not planning to sell the house as-is, it's a good idea to spruce up the interior and exterior of the property. Even if you're only buying a few cans of paint and a roller, the costs can add up quickly.
- Home inspection: Buyers will typically do their own home inspection, but sellers who go above and beyond can give themselves an edge in a competitive market. If you're going out of your way to buy a home inspection, it can show you have nothing to hide. These inspections cost a few hundred dollars and may reveal structural problems that you were unaware of.
- Staging: Arranging your furniture to show off the best of the home can really inspire buyers to view its potential. Whether you dress up your home with cozy touches (e.g., cashmere throws, small bouquets, etc.) or more modern decorations, it can help attract the perfect buyer.
If you're moving out before you sell the house, you'll need to continue paying the utilities. You'll also need to check with your lender as to exactly how much you owe when you pay off the loan. Some lenders will charge prepayment fees upon early termination. You may also be asked to either pay or split the closing costs, especially if you're selling in a buyer's market. This can include anything from the title inspector fees to transfer costs. Finally, you may need to pay capital gains tax if your home skyrocketed in value or any lingering property taxes.
Some sellers end up paying closer to 10% of the total sale price of their home, a figure that can be difficult to swallow for many sellers. It's worth clarifying each cost so you always know what you're paying for.
As you get ready to add your house to the real estate market, you likely will consider high and low initial asking prices. However, it is important to remember that no two residences are exactly alike. And much in the same vein, the initial asking price for your home may vary from that of a similar residence based on your house's condition, age and other factors.
Ultimately, a diligent home seller will allocate the necessary time and resources to determine a competitive initial asking price for his or her residence. This seller will be able to establish an initial home asking price that hits the mark with buyers, and as a result, stir up plenty of interest in his or her house.
Determining the ideal initial home asking price may seem tough at first. Fortunately, we're here to help you set a competitive price for your residence, regardless of the current housing market's conditions.
Now, let's take a look at three tips to help you establish the ideal initial asking price for your residence.
1. Assess Your Home
The present condition of your house may have a major impact on its value. Thus, you should perform a home inspection before you list your house to identify any underlying problems and address such issues.
A home inspection is generally requested by a buyer after a seller accepts an offer on a residence. Conversely, a seller who wants to go above and beyond the call of duty may perform an inspection to take a proactive approach to home improvement projects. This approach may help a seller mitigate potential home problems before they are discovered later in the home selling process.
Thanks to a home inspection, a seller can establish home improvement priorities. Then, this seller can perform myriad home improvements and move closer to maximizing the value of his or her residence.
2. Evaluate the Housing Market
Operating in a seller's market is far different from selling a house in a buyer's market. If you review the real estate market, you can gain the insights you need to establish a competitive price for your home.
Take a look at the prices of houses in your area that are similar to your own residence. This information will enable you to understand the price range for comparable houses in your city or town.
Also, evaluate the prices of recently sold residences in your area. This housing sector data will allow you to determine whether you are operating in a buyer's or seller's market.
3. Collaborate with a Real Estate Agent
A real estate agent knows the ins and outs of selling a home in any housing market. He or she can offer a wide assortment of housing market data. Perhaps most important, a real estate agent will make it simple for you to establish a competitive price for your residence and reap the benefits of a fast, profitable home selling experience.
Want to add your house to the real estate market? Use the aforementioned tips, and you should have no trouble setting a competitive initial asking price for your house.
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