5 Reasons to Sell Your Home Today
As if last week’s post about the current condition of the market in Columbus, Ohio, didn’t convince you enough; here’s more convincing. Now is the time to put your home on the market. Why? Because we are in a seller’s market and houses in all price ranges are going fast!
If you missed out on our explanation of a seller’s market, check it out here.
As our agents stressed in their wise words to potential buyers, homes are selling quick and the market is hot right now!
Sellers have the upper hand when it comes to pricing due to the inventory shortage of homes on the market. It all goes back to the basic economic concept of supply and demand. There is currently a larger demand than supply of homes on the market. In other words, more homeowners are looking to buy than looking to sell.
According to a Trulia survey of 2,000 U.S. adults, there is greater enthusiasm about the housing market in 2018 than the previous year. However, 6% of respondents said they plan to sell their home in the next year. With this optimism surrounding the market’s current state, far less homeowners are selling their home and thus the shortage problem begins.
There’s an imbalance of buyers and sellers, so what? Well, this means homes are getting snatched quick from the market making it crucial that buyers pay top dollar when negotiating their offer to the seller. When a home has multiple potential buyers, the seller is getting more bang for their buck than they would in a buyer’s market.
Here’s 5 reasons to put your house on the market today:
1. Buyers are going through great lengths
Any house that buyers can get their hands on within their price range will suffice. Although buyers are still making sure their needs are met when home hunting, their agent is suggesting they go through greater lengths to secure a home in order to to beat out the competition. Bidding wars will push a home’s value up over the asking price in most cases. This is the best situation a seller can find themselves in with multiple offers on the table.
2. Beat the Builders to it
To make up for the low inventory in today’s market, builders have an opportunity to make demand catch up to supply. When builders begin filling this gap, the market slowly shifts as buyers are enticed by a newer home asking for entry-level pricing. Builders are key to this shift so beat them to it before time runs out.
3. Historically Low Interest Rates
That’s right, interest rates are historically low for mortgages. These low interest rates push buyers to start looking sooner than later due to the money they will save in the long run. Low interest rates will ultimately correlate to a more smooth transaction for both the buyer and the seller. The current interest on 30-year fixed mortgages is just above 4%, but it’s expected to increase to 5% in the next year. The longer you wait, the worse off you will have it when it comes to interest.
4. High Consumer Confidence Levels
Consumer confidence is the feeling you get when you make a splurge purchase and know your bank account won’t suffer as much as it could. Consumers in today’s economy are generally confident and comfortable in their current financial situation. This confidence is due to low unemployment rates and stock market surges that are leaving consumers with more money to spend. As American’s pockets are growing and job stability is promising, this can only mean great things for a seller in today’s market.
5. Millennial's Fearlessness
We are now seeing Millennials at the forefront of the real estate market. According to Realtor.com, 43% of buyers taking out mortgages in 2018 are millennials. This generation is taking the plunge this year buying homes with increasing demand. It’s a pivotal time for the age group as they step their game up from renting homes to buying them for their expanding family as they reach their 30’s. The fearlessness of millennials in the current market condition pushes demand up to supply and helps close the gap that deems homes on the market a hot ticket item!
Here's what you should take away from these signs and factors that have influenced the seller's market: Yes, now is the time to sell! But don’t forget that buyers are still looking for sellers to make their home has presentable as possible with updates and effort into the presentation of the home. Just because your home is the bread and butter of the neighborhood doesn’t mean you can afford to slack on presentation. Start updating your home now and call a local Berkshire Hathaway HomeServices Professional Realty agent today!