A new year brings thoughts of buying a home. If you’re considering making a move, and you already own a home, chances are you need proceeds from that sale to help you buy a new home.
If you make some great decisions upfront, your chances of selling are greatly improved. Here's what experts suggest.
Price Your Home Right
When mortgage prices rose in 2022 buyers pulled out of the market. The number of homes for sale did not drop. But that means there is competition for those fewer buyers still looking for a house. It's best to be honest with yourself an assess the current market by appropriately listing your home based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, explains:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
Don't let emotion lead you to overpricing your home. But pricing too low can mean less profit. That's where a good realtor can help you maximize your best return on investment.
Do NOT Get Emotional
Today, homeowners are living in their houses longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):
While that stability is great for creating equity, staying in a home for several years makes you even more emotionally attached to your space. After all, it's where your kids grew up or the first home you ever bought. Moving can be emotional.
But do not let that emotion cloud your negotiations with a buyer who also could spend many years in your house and enjoy all the memories they will create. So, negotiate a fair market price.
Make Your Home Attractive to Buyers
While you may love your decor and how you’ve customized your home, buyers may be turned off by the plants, pictures and knick-knacks. That’s why it’s so important to focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:
“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”
It's not easy to dethatch yourself from a home you've loved for many years. But understand that someone else loves your home and wants to make it theirs. Give them an opportunity to make great memories and give your house a chance to raise another family.
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