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Florida Housing Market 2024 & Predictions for Next 5 Years

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Sunshine, sandy beaches, and a booming tourism industry have always placed Florida’s housing market in the spotlight. This influx of visitors translates to a constantly evolving real estate market, with opportunities and challenges for potential buyers. Home values continue to rise, though slower than in the recent past. This article explores everything you need to know about Florida’s housing market, from pricing trends to valuable insights for buyers and sellers.

Key Takeaways

Sales Surge: Closed sales of existing single-family homes surged by 5.2% year-over-year in July 2024.
Inventory Growth: Both new listings and inventory rose significantly in July 2024 compared to the previous year.
Median Prices: The median sales price for single-family homes saw a slight increase of 0.5%, while condo prices dropped by 1.3%.
Market Variation: Market behaviors vary by region within Florida, indicating diverse conditions.
Interest Rates Impact: Lower mortgage rates are boosting homebuyer demand, enhancing purchasing power.

How is the Florida Housing Market Doing Currently?
Home Sales

In July 2024, Florida’s housing market reported a total of 23,353 closed sales of existing single-family homes, representing a 5.2% increase from the same month last year. Conversely, condo-townhouse sales experienced a slight decline of 1.2%, totaling 8,364 units sold. This differentiator highlights changing preferences among buyers, with single-family homes gaining popularity amidst evolving market conditions.

According to the data from Florida Realtors®, these closed sales serve as a crucial indicator of market health. While sales for single-family homes have risen, the slight fall in condo sales indicates that different segments are behaving variably and buyers are perhaps gravitating towards larger properties that offer more living space.

Home Prices

Analyzing the median sales prices reveals crucial insights into affordability and market dynamics. The statewide median price for single-family existing homes reached $416,990, essentially unchanged with a 0.5% increase from July 2023. Meanwhile, the median price for condo-townhouse units was reported at $315,000—a 1.3% decline year-over-year.

Dr. Brad O’Connor, Chief Economist for Florida Realtors®, emphasized that these price shifts reflect a stabilization that could mitigate affordability challenges. The slight rise in single-family home prices, coupled with the decrease in condo prices, may indicate a normalization of the market as more inventory becomes available.

Housing Supply

The housing supply in Florida is undergoing a transformation, predominantly marked by increased inventory levels. In July 2024, new listings of single-family homes rose by 10.7% compared to the previous year. The condo and townhouse market saw a even steeper increase of 13.8% for new listings.

As reported by Florida Realtors®, single-family homes currently represent a 4.6-month supply, while the supply for condo-townhouse properties sits at 7.4 months. This developing supply landscape indicates a potential shift towards a buyer’s market, easing some of the price pressures that have dominated recent years.

Market Trends

Market trends in Florida are increasingly reflecting a more balanced approach, influenced heavily by rising inventory and changing sales dynamics. There is a marked difference in how various regions within Florida are faring. Urban centers, such as Miami and Orlando, might display robust demand due to economic drivers, while less-populated areas may see moderate activity.

The data suggests that buyers are beginning to have more options, which ultimately leads to more informed purchasing decisions. Lower mortgage rates are also contributing positively, granting buyers greater purchasing power and encouraging first-time homebuyers to enter the market.

According to Florida Realtors® President Gia Arvin, these trends showcase a promising evolution in the marketplace aimed at addressing ongoing affordability challenges. As inventory continues to expand, buyers may find themselves in a more favorable environment for negotiation, potentially leading to longer-term market stability.

In summary, the Florida housing market is showing resilience and adaptability amid fluctuating conditions. With significant increases in inventory and new listings, along with a modest uptick in single-family home sales, state dynamics are making room for potential growth and stability.

Florida Real Estate Forecast for Next 5 Years

Florida home values have risen by about 80% over the past 5 years and a positive trend is forecasted for the next 5 years. With the recent spike in mortgage payments as a result of rising interest rates, analysts are watching the Florida housing market closely to see what effect this will have. It is likely to restrict house price increases, but to what amount is unclear because there is still a “fear of losing out” attitude among purchasers, which is fueling the market, although slowly.

It’s no surprise that Zillow ranked Tampa, Florida, as the top real estate market in the United States in 2022. Florida housing prices have witnessed some of the most dramatic increases in the country, with Miami and Tampa at the forefront of the upswing. Due to a variety of variables, the housing market in Tampa has outpaced many others, including a large number of potential buyers, a scarcity of supply, strong property sales, and an active employment market in the area.

Overall, the Florida housing market is strong and is predicted to remain so in the next five years. If you’re a seller, this is wonderful news since it implies property values are rising and there isn’t much selling competition, giving you the luxury of selecting from the best offers on your schedule. Higher mortgage rates may cause unprepared house buyers to postpone their purchases.

If this reduces buyer demand sufficiently in some Florida areas, price appreciation may decrease. The lower price increase may provide remaining buyers who can afford higher interest rates more confidence in locating a home they can afford. And that leads to fewer home sales. If you’re selling a home in Florida this year, the odds are good that you’ll come out ahead financially. Real estate prices and mortgage rates are rising, and the few affordable houses that remain are being snapped up like sardines. If you want to buy in this market, now’s not the time to buy.

Whether or not the country enters a recession, the housing market appears to be in good shape for the foreseeable future. Perhaps not at the same rate that the United States has lately seen, but growth nevertheless. This is an excellent moment for real estate investors, particularly those interested in Florida, to capitalize on market possibilities.

Florida Real Estate Appreciation Rates For 10 Years

Florida’s real estate market has seen unprecedented price rises during the last few years, as a result of a lack of supply and high demand. Most of the emphasis is focused on the prices and the possibility of a housing bubble. While Florida’s mild temperature, cheap taxes, and natural attractions have historically enticed newcomers to the state, if affordable housing challenges continue to prevail across the state, these enticing elements may go away.

A post-pandemic world necessitates that the state of Florida deal with the fact that pricey housing can in certain respects impede economic growth and have an unequal impact on critical segments of the population. Florida has had some of the strongest housing appreciation rates in the country over the past decade.

Real estate appreciation rates in Florida have shown significant growth over various time periods, making it an attractive market for investors and homeowners alike. Here’s a breakdown of the appreciation rates based on data from NeighborhoodScout:

Latest Quarter (2022 Q4 – 2023 Q1)

During the latest quarter, spanning from the fourth quarter of 2022 to the first quarter of 2023, Florida’s real estate market experienced a modest appreciation rate of 0.02%. While this figure may seem relatively low, it’s essential to note that it outperformed the national average by 0.08%, indicating a resilient housing market in the face of economic fluctuations.

Last 12 Months (2022 Q1 – 2023 Q1)

Over the past year, from the first quarter of 2022 to the first quarter of 2023, Florida’s real estate market saw a substantial appreciation rate of 13.07%. This robust growth mirrored the average annual rate, once again highlighting the state’s resilience and attractiveness to investors, with a remarkable performance ranking of 10 compared to the rest of the country.

Last 2 Years (2021 Q1 – 2023 Q1)

Examining a slightly longer timeframe, from the first quarter of 2021 to the first quarter of 2023, the appreciation rate in Florida stood at an impressive 44.36%. This growth far exceeded the national average, by 20.15%, reinforcing Florida’s reputation as a thriving real estate market.

Last 5 Years (2018 Q1 – 2023 Q1)

Over the past five years, from the first quarter of 2018 to the first quarter of 2023, Florida’s real estate market exhibited substantial appreciation, boasting a rate of 77.01%. This rate exceeded the national average by 12.10%, signifying Florida’s consistent and strong real estate performance.

Last 10 Years (2013 Q1 – 2023 Q1)

When considering the last decade, from the first quarter of 2013 to the first quarter of 2023, Florida’s real estate market recorded remarkable appreciation of 174.83%. This growth, which surpassed the national average by 10.64%, demonstrates the state’s enduring appeal to real estate investors.

Since 2000 (2000 Q1 – 2023 Q1)

Finally, when looking at the broader picture from the first quarter of 2000 to the first quarter of 2023, Florida’s real estate market experienced exceptional appreciation, amounting to 281.81%. Even over this extended period, Florida outperformed the national average by 6.00%, reaffirming its status as a top choice for real estate investment over the years.

These appreciation rates indicate the dynamic and resilient nature of Florida’s real estate market, making it an attractive destination for those looking to invest in property.

Within Florida, Tampa Bay has one of the most overpriced housing markets in the nation, according to new research from Florida Atlantic University. Extremely low mortgage rates drove our red-hot housing market, particularly during the epidemic, and intensified bidding wars. Lakeland ranks 12th nationally, and second in the state, with homes overvalued by more than 53.2%. North Port-Sarasota-Bradenton is No. 17 nationally, fourth in the state at 48.9%.

What’s Affecting the Florida Housing Market in 2024?

Florida’s housing market, once a whirlwind of bidding wars and record-breaking sales, has entered a new phase in 2024. Let’s delve deeper into the key factors shaping this evolving landscape:

The Interest Rate Effect: The most impactful change is the significant rise in mortgage rates. Rates that hovered around 3% in early 2023 have climbed to over 7%, significantly affecting affordability and dampening buyer fervor. This translates to buyers having more breathing room to negotiate and explore options, a stark contrast to the recent past.
Inventory In Flux: With the sales frenzy subsiding, the number of homes on the market is gradually increasing. This rise in inventory benefits buyers by providing more choices and alleviating the intense competition that characterized the market in prior years. While some sellers may still experience bidding wars, particularly for highly desirable properties, buyers are no longer pressured into hasty decisions fueled by a lack of options.
Price Growth in Check: Fueled by low inventory and high demand, home prices in Florida have enjoyed steady appreciation for years. However, with rising interest rates squeezing affordability, the pace of appreciation is expected to slow down considerably in 2024. Experts even predict price stability or slight corrections in some areas, particularly those that experienced the most dramatic price hikes. This could present a potential buying opportunity for those who were previously priced out of the market.
Sellers Re-entering the Fray: Many homeowners who opted to hold off on selling during the seller’s market frenzy may decide to re-enter the market in 2024. This influx of listings will further contribute to the rise in available inventory, potentially tipping the scales further in favor of buyers. However, it’s important to note that Florida’s enduring appeal as a retirement destination and tax haven will continue to attract new residents, putting pressure on housing supply despite the market shift.
Demographic Shifts Continue: Florida’s sunshine, sandy beaches, and reputation for a relaxed lifestyle continue to be a magnet for retirees and those seeking a lower tax burden. This steady influx of new residents will undoubtedly put pressure on housing supply, even with the anticipated rise in inventory. This means that while affordability may improve in the short term, long-term price appreciation is still a possibility due to these strong demographic tailwinds.
New Construction on the Horizon: The persistent demand for housing, coupled with the ongoing shortage of existing inventory, may incentivize an increase in new home construction in 2024. This could help alleviate some of the pressure on housing supply, particularly in high-demand areas. However, rising construction costs and ongoing supply chain issues could pose challenges for builders, potentially limiting the pace of new development.

Will the Housing Market Crash in Florida?

Population growth, and particularly growth in the number of households, lead to a growth in housing demand. Real estate is subject to the law of supply and demand: when there are more purchasers than available homes, prices rise.  Since the 1940s, Florida’s population has increased year after year, often outperforming the national average. However, like the rest of the United States, growth plummeted to historic lows during the initial years of the pandemic until rebounding last year.

Florida is now America’s fastest-growing state. According to recent census data, the Sunshine State added over 400,000 additional people between July 2021 to July 2022. It was a growth of 1.9%, bringing the total population to 22,244,823. That makes it faster-growing than Texas, which has the second-largest population in the United States, trailing only California.

According to experts, the national housing market or the market in Florida is nowhere near the crash that occurred during the Great Recession of 2008. This is partially due to tighter lending laws coming from the financial crisis. Borrowers are in considerably better shape, as seen by their improved credit scores. And as a result of rising home values, homeowners have a record amount of equity.

The current situation is a fairly complex web, but it’s nothing compared to the 2008-2009 market crisis, which took years to unravel. The Fed’s pandemic actions fueled a housing boom. As it tries to withdraw that support, it could be bad news for housing but will it lead to a crash? The Fed will continue to play a crucial role in the future of the housing market.

Back in February 2020, the Fed owned $1.4 trillion in mortgage-backed securities, and the number was falling rapidly. As the pandemic took root, however, the central bank initiated a new round of bond purchases (known as “quantitative easing”), bringing the number to $2.7 trillion.

Fed seeks to tighten monetary policy to combat inflation Although it wants to shrink that portfolio it is quite improbable that the Fed can unwind its balance sheet. It might simply accept the fact that it will continue to play a disproportionate role in the housing market and have a larger balance sheet than it would prefer. Prepare for a collapse, not a correction, in the housing market during the next 18 to 24 months if they do.

How is the Florida Housing Market for Investors?

Florida’s strong population growth, diverse job market, tourist attractions, affordable property prices, tax benefits, and diversified economy all contribute to making it a hot spot for real estate investment.

Strong Population Growth and Job Market:

Florida has strong population growth, particularly in cities like Miami, Orlando, and Tampa. The population has grown consistently and positively over the years, and in 2023, it increased by 1.6%. This makes Florida the third most populated state in the US, with a population of over 22.6 million people.

In 2022, Florida was the fastest-growing state in the country for the first time since the 1950s, increasing by 1.9%. This leads to an increased demand for housing, making it a prime location for real estate investment.

Additionally, Florida’s job market is diverse and growing, which attracts new residents and supports the demand for housing. According to FloridaCommerce, Florida’s private sector job growth rate increased by 2.1% in March 2024, which is faster than the national rate of 1.7%. In January 2024, Florida’s labor force grew by 2.2%, which is faster than the national rate of 0.8%.

Tourist Attraction:

Florida is a booming real estate market due to tourism. Florida attracts millions of tourists annually. In 2023, Florida’s market share of domestic tourists increased to 14.8%, up from 13.8% in 2022. This surge in market share represents the largest increase of any state, underscoring Florida’s appeal to travelers from across the country.2 days ago

In tourist-heavy areas like Miami, Orlando, and others, vacation rental properties are in high demand. Vacation rentals offer greater space, privacy, and facilities than hotels for Florida tourists. Investors can earn rental income and gain property value via vacation rentals.

Vacation rental properties are more reliable and profitable than typical rental properties due to high demand. Tourists pay extra for comfortable vacation rentals. Tourist demand can remain consistent throughout economic downturns, making vacation rental properties more market-resilient. Florida’s great tourist draw can offer real estate investors looking for vacation rental properties a reliable and successful revenue stream and property value appreciation.

Realtively Affordable Property Prices:

Compared to other states like California, property prices in Florida are relatively affordable, which can make it an attractive option for real estate investors. This can lead to strong returns on investment and can make it easier for investors to purchase multiple properties. It’s important to note that property prices can vary widely depending on location and property type. While some areas of Florida may have lower property prices, other areas, such as beachfront or tourist-friendly areas, may have higher property prices.

Tax Benefits:

Florida’s lack of state income tax holds significant advantages for real estate investors. This translates to higher net profits, as rental income isn’t taxed by the state. This frees up more cash flow that can be used for reinvestment, debt repayment, or simply boosting financial security. Additionally, the absence of state income tax directly improves the return on investment (ROI). With less money going towards taxes, the overall return becomes more attractive.

Compared to real estate markets in states with high income tax rates, Florida offers a competitive edge. Investors looking to maximize their returns are naturally drawn to Florida’s tax benefits. There’s also a tax deferral advantage. Capital gains taxes on selling an investment property are typically deferred until the sale occurs. This allows investors to accumulate wealth and potentially benefit from lower tax rates in the future.

For seasonal residents who rent out their properties during off-seasons, Florida’s tax structure is particularly attractive. The lack of state income tax on rental income can be a major draw, making Florida a compelling option for this investor group.

It’s important to remember that while there’s no state income tax, Florida does have other taxes that can impact real estate investors. Property taxes and sales taxes on renovations are important factors to consider. Consulting with a tax advisor is crucial to fully understand the tax implications of real estate investment in Florida.

Diversified Economy:

Florida’s real estate market benefits from the state’s diverse economic landscape. Unlike regions reliant on a single industry, Florida’s economic engine is powered by a mix of sectors like agriculture, tourism, aerospace, and technology. This diversification acts as a buffer during economic downturns.

Florida’s economy grew 9.3% in 2023, the fastest rate in the country, and is expected to continue to grow at a faster pace than any other state. However, some expect growth to decelerate to 2.8% and 1.1% over the current and next fiscal years as businesses and consumers transition from a high inflation environment to a high interest rate environment.

Even if one industry slumps, the others can help maintain stability, which translates to a more predictable market for real estate investors. However, this advantage shouldn’t overshadow the importance of thorough research. Understanding the specific market, the property itself, and developing a risk management plan are all crucial steps before investing in Florida real estate.





This article was originally published by a www.noradarealestate.com . Read the Original article here. .

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Existing-Home Sales Inch Up But Prices Keep Soaring | Bankrate

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The Good Brigade/Getty Images; Illustration by Austin Courregé/Bankrate

Key takeaways

Existing-home sales in July 2024 rose 1.3 percent from the previous month, ending four straight months of declines, according to the National Association of Realtors.

The nationwide median sale price was $422,600, up 4.2 percent from last year and the highest July median on record.

Inventory in July continued to inch up, reaching a 4.0-month supply — a sign that buyers may be gaining more leverage in the market.

The housing market reversed course slightly in July 2024, showing a slight increase in sales for the first time in four months, a new report by the National Association of Realtors (NAR) shows. Sales of existing homes rose 1.3 percent from last month, which marks an end to four consecutive months of declines but is still 2.5 percent lower than one year ago. Meanwhile, the median home-sale price dropped slightly from June’s all-time high but still marked the highest median price on record for the month of July, according to NAR Chief Economist Lawrence Yun.

High mortgage rates have contributed to the sluggish sales figures. While rates have thankfully remained below the 8 percent mark briefly seen in October 2023, they are still hovering between 6.5 and 7 percent. The average rate on a 30-year fixed-rate loan was 6.62 percent as of August 21, according to Bankrate’s most recent survey of large lenders. Combined with the historically high prices, that means affordability challenges remain daunting for homebuyers.

The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates.
— Mark Hamrick, Bankrate Senior Economic Analyst

“The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates, as well as the health of the broader economy,” says Mark Hamrick, Bankrate’s senior economic analyst. “The market could benefit from a combination of tailwinds, if they were to develop and are sustained.”

Existing-home sales finally inch upward

The count of existing-home sales includes all completed resales, including single-family houses, condos, townhouses and co-ops. According to NAR, the number of sales nationally increased 1.3 percent month-over-month to an annual pace of 3.95 million transactions in July 2024. While that’s the first increase since Q1, it’s still a 2.5 percent decrease from last year.

“Despite the modest gain, home sales are still sluggish,” Yun said in a statement.

Regionally, the Northeast saw the biggest sales increase, up 4.3 percent from June and 2.1 percent from July of last year. In the West, sales rose 1.4 percent both month-over-month and year-over-year. Sales in the South rose 1.1 perent from June but were down 3.8 percent from last year, and in the Midwest sales were flat in July and down 5.2 percent from July of last year.

Days on market

Properties typically remained on the market for 24 days in July, up slightly from 22 days in June and 20 days in July of last year. Selling times are a crucial measure at any time of year, but especially during the peak spring and summer selling seasons.

Home prices hit new July record

The nationwide median sale price for existing homes in July clocked in at $422,600. That’s down slightly from June’s all-time high of $426,900, mostly due to seasonality, but it’s still an increase of 4.2 percent from last year and the highest July median on record. This month’s jump marks 13 consecutive months of year-over-year price increases.

All four geographic regions again experienced annual price increases in July. The West continued to have the highest median price by far at $629,500, up 3.4 percent from a year ago. In the Northeast, the median rose 8.3 percent from a year ago to $505,100. The South’s median price rose 2.3 percent to $372,500, and the Midwest’s median rose 4.5 percent to $321,300.

First-time homebuyers made up 29 percent of sales in July, no change from June but down slightly from 30 percent in July of last year. All-cash deals accounted for 27 percent of July sales, up slightly from 26 percent a year ago.

Housing inventory on the rise

The supply of homes for sale is inching higher, after being severely low for quite some time. Total housing inventory — the overall number of homes for sale on the market — stood at 1.33 million units at the end of July. That’s up a modest 0.8 percent from June but a significant 19.8 percent jump from a year ago. The figure represents 4.0-month supply, which is getting closer to the five-to-six months typically required for a healthy, balanced market.

Despite the sharp rise in mortgage rates this past fall, which has kept many homeowners from sellingand thus kept those homes off the market, things may be looking up for homebuyers. “Consumers are definitely seeing more choices, and affordability is improving due to lower interest rates,” Yun said.

Robert Frick, corporate economist with Navy Federal Credit Union, cautiously agreed: “This is a glimmer of hope, not a turnaround signal,” he said. “Home sales remain weak, but lower mortgage rates should bring more potential sellers off the sidelines and increase affordability somewhat.”



This article was originally published by a www.bankrate.com . Read the Original article here. .

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Sweeping changes have arrived for residential real estate in Colorado

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A landmark settlement in a lawsuit against the National Association of Realtors could transform how homes are bought and sold starting on Saturday, potentially lowering commission costs and providing greater transparency.

But it could also complicate home purchases for first-time buyers and shake up the real estate brokerage industry.

“This is an opportunity for us to adjust and adapt. In this day and age, so many people are seeking out transparency, and this change in practices gives us that,” said Natalie Davis, a Realtor with Keller Williams Realty Downtown in Denver.

Although buyers and sellers alike could always negotiate terms, including the commission rate, with their agents, industry practice settled into a pattern where sellers paid commission costs in the 5% to 6% range for both sides of a transaction.

Home sellers in Missouri sued to end the practice, which they argued wasn’t fair and had them paying more out of pocket than necessary. The National Association of Realtors settled the case in March for $418 million and agreed to change some of its long-standing practices effective Aug. 17.

One of the biggest changes regards the posting of what a seller would pay an agent bringing a buyer to the table on the multiple listing service or MLS, which local Realtor associations have historically owned.

Agents could see the cooperative compensation information, but consumers didn’t have easy access. So long as sellers were footing the bill, wrapping the commission costs into the sales price, which lenders would finance, it didn’t matter much.

“No longer can real estate brokers put their commissions on the MLS. But they can put that information on their own websites. That is what you are going to see more of. But that will be up to each individual brokerage,” said Tyrone Adams, CEO of the Colorado Association of Realtors.

Buyer agents can contact the listing agent directly to obtain that information when it isn’t publicly available, an added step, but not a huge one.

Separating the commission information from platforms owned by Realtors was meant to address allegations of collusion, while also providing sellers more flexibility in compensating buyer agents.

“Sellers will need to be aware that by not offering compensation, they may diminish the buyer pool. It is the buyer’s choice, not the Realtor’s choice,” said Kelly Moye, a Realtor based in Northglenn.

Steering, or the practice of agents avoiding listings that are less favorable to them, is still prohibited. But it isn’t against the law for buyers to set such conditions.

That is where the tug of war will happen. A buyer who doesn’t have the extra money to cover their agent’s commission may want to limit the listings they consider to only those where the seller has agreed to pay.

But the starter-home market is also where homes sell the fastest and with multiple offers.

Even when the seller is willing to pay a buyer’s agent, showing up with a commission request below the competition could save a seller money and push an offer to the top, said Holden Lewis, a home and mortgage expert with Nerd Wallet in a blog post.

By negotiating on the front end with their agent, buyers can improve their chances when it comes to securing a purchase.

Agents will want to get paid — either by the seller or the buyer — and contracts will state that. But if the buyer is strapped, which is often the case with first-time buyers, they should try to negotiate terms.

“The contract will state how much you will pay the agent representing you either in a flat fee or a percentage of the purchase price, both of which are open to negotiation. Other elements up for negotiation include duration of the contract and geographic area (one or more addresses, zip codes, cities, and counties) for the scope of your search,” Holden said.

The settlement requires buyer agent agreements, which Colorado has long required.  Even standardized contracts leave room for negotiating. If an agent isn’t willing to budge or can’t seem to justify what they are asking for in compensation, consumers are encouraged to look elsewhere.

“As to the regular contract with a financial obligation to compensate the buyer agent, they should not sign this agreement unless they’ve read and understood it and it’s fair to them,” said Stephen Brobeck, a senior fellow at the Consumer Federation of America.

Buyers should request a copy of the agent contract and review it closely before signing, avoiding agents who don’t provide an advanced copy. Buyers should always weigh the services they will receive against the costs.

“We suggest they aim at the dollar equivalent of 2% or less of the sale price,” Brobeck said.

The average buy-side commission paid on a home purchased in Denver was 2.56% in July, down from 2.64% in January, according to a study from Seattle brokerage Redfin. Denver had the 18th highest commission of the 50 metro areas that Redfin examined.

Home tours a sticking point

Most listing agreements don’t allow a buyer to show up and tour a home on their own, aside from an open house. Part of that is to protect sellers, who typically leave when a showing is held and who don’t want strangers walking through their personal space unaccompanied.

The National Association of Realtors, as part of its proposed settlement, is requiring that brokers sign a “touring” or “showing” agreement before taking a potential buyer through a property. It isn’t a full-blown buyer-agent agreement, but will likely discuss compensation should the person touring decide to buy a home.

“The idea is to provide transparency to the buyer regarding compensation and where it will come from,” Moye said.

The Colorado Real Estate Commission, however, argues that showing agreements aren’t required by state law and are part of licensed brokerage duties, said Marcia Waters, director of the Colorado Division of Real Estate.

“That isn’t a consumer-friendly practice and if someone wants to see a property, they shouldn’t be forced to sign an agreement,” Waters said, adding the commission has told the Colorado Association of Realtors as much in a letter.

The Real Estate Commission provides many standardized forms the industry uses, but hasn’t created touring agreements and doesn’t plan to, Waters said.

“If brokers are using touring agreements, they have to hire a licensed Colorado attorney to draft those,” she  warned.

A tougher time for first-timers

Current homeowners who are trading up will typically have enough equity in their homes to cover the cost of an agent. They are also less likely to need hand-holding and can take on more tasks themselves. More concern is focused on first-time buyers.

“First-time buyers are those who need the agent the most. They are also the least likely to be able to afford their buyer agent compensation,” said Lindsey Benton, broker/owner of Live.Laugh.Denver. Real Estate Group.

Downpayment and closing costs are already a burden for many first-time buyers and covering agent fees will add to the upfront expenses that lenders still haven’t figured out how to roll into a mortgage. First-time buyers are also the most vulnerable if they try to go it alone.

The changes could revive less common practices, such as transaction brokers, who behave as arbitrators for both sides rather than fiduciaries for one side or the other, or using an attorney to draft a legally binding contract or buyer self-representation.

New technology-focused alternatives are already arriving. On the same day the NAR changes took effect, San Francisco startup Shay, which describes itself as the “first self-representation” platform for homebuyers, launched.

The tagline on its homepage is: “Buy a home without a realtor. Save $1000s.”

“Paying a real estate agent a fixed percent of a home transaction is simply a bad deal for many homebuyers. We enable homebuyers to save money by doing it themselves. This is similar to how TurboTax gives tax filers an alternative to accountants or Expedia gives travelers an alternative to travel agents,” said Peter Jeffrey, the company’s CEO and founder in a news release.

The platform offers more than 20 guides to help buyers with each step of a transaction and claims its AI models can generate offers, assist with negotiations and review agreements.

Adams counters that purchasing a home is the most complex transaction most consumers will ever undertake and having a trained professional assisting comes with important benefits.

“People will have more conversations about these things and understand what it means for them. That isn’t a bad thing,” he said.

Originally Published: August 17, 2024 at 6:00 a.m.



This article was originally published by a www.denverpost.com . Read the Original article here. .

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Should I Buy A House Now Or Wait? Is It A Good Time? | Bankrate

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Key takeaways

The current housing market is causing many prospective buyers to wait for better conditions, but there’s no guarantee that it will improve considerably anytime soon.

If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now might still be smart.

If your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.

Buy now, or wait? That’s the question prospective homeowners have been struggling to answer in today’s housing market. Home prices have been skyrocketing recently, and the Federal Reserve’s work to tame inflation sent mortgage rates soaring, too.

The combination has led many would-be buyers to pick the “wait” side of the equation. The median sale price of an existing home in the U.S. hit its second all-time-high of the year in June 2024 — an astonishing $426,900 — according to the National Association of Realtors (NAR). And, according to the Fannie Mae Home Purchase Sentiment Index released in July 2024, 81 percent of consumers believe it’s a bad time to buy a house.

However, after being at a constant disadvantage for the past few years, things have actually started to look a bit better for buyers in some respects. For example, days-on-market figures are up, giving buyers more time to make an informed decision. NAR data shows that homes typically spent 22 days on the market before selling in June, up from 18 days a year ago. And available housing inventory, while still on the low side, is rising — up a healthy 23.4 percent year-over-year, per NAR.

June’s National Housing Report from RE/MAX, one of the biggest real estate brokerages in the country, also reported a sharp uptick in new listings, up 38.1 percent from June 2023. “It’s good to see inventory levels rising, as more listings represent more options for buyers,” said RE/MAX president Amy Lessinger in the report. However, she continued, “it’s evident that buyers are sensitive to interest rates, highlighting the need for lower rates to stimulate significant growth in market activity.”

So, is it a good time to buy a home? Or is it better to wait on the sidelines, in the hopes that either prices or rates see a significant drop soon? And are there still concerns about a possible recession? Here are some key considerations to help determine the way forward.

Is now a good time to buy a house?

Mortgage rates have backed off from the 8 percent highs hit in October, but they’re still close to 7 percent. And home prices are sky-high as well: June data showed the highest median price NAR has ever recorded, reflecting 12 consecutive months of year-over-year increases. Together, these factors might dissuade you from buying right now, and that’s understandable.

No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately. It also means avoiding the potential for additional mortgage rate increases later: Rising rates can spell serious trouble for your monthly budget, and they also result in paying more in interest over the life of the loan.

“If a buyer finds a property they would like to call home, they should not delay,” says Stacey Froelich, a broker with Compass in New York City. “You cannot time the market, and a home should be a long-term investment.”

“Remember, you ‘marry the house and date the rate,’” Melissa Cohn, regional vice president of William Raveis Mortgage in Connecticut, recently told her newsletter subscribers.  To put it another way, if you find the right place, buy now — you can always refinance later.

In general, if you can answer yes to these three questions, now is a good time to buy.

Do you have excellent credit? Anytime you’re borrowing money, start by checking your credit score. The best deals on mortgages will be available to those with the best scores — in fact, the median credit score for mortgage borrowers in the first quarter of 2024 was a very high 770, according to the Federal Reserve Bank of New York. If you have demonstrated that you are a low-risk borrower with a history of on-time payments, you’ll be in line for the lowest mortgage rates a lender offers.

Have you saved enough for a down payment? In addition to paying your bills on time, you should be sitting on a sizable chunk of change for a down payment. The more you can pay upfront, the less you’ll have to borrow (and so the less interest you’ll have to pay). Make sure you’ll have plenty left over, too: Lenders like to see additional cash reserves that can provide a cushion if something unexpected happens.

Are you planning to stay in the home for a while? Beyond the purchase price, buying a home comes with closing costs that can run thousands more. So, to justify those one-time transaction costs, it’s wise to be reasonably certain that you won’t move again anytime soon — or that you’ll be financially stable enough to hold on to the property and rent it out. Selling a home very soon after buying can have serious tax implications.

Should I buy a house now or wait?

Ultimately, the decision of when to buy a home is up to you. Life goes on, whether the timing is perfect or not. If you’re anxious to become a homeowner, you’ve met the criteria above and you’re financially stable, go ahead and start house-hunting.

If you’re holding out for lower mortgage rates, a bit of patience might be in order. They have been volatile lately, topping 8 percent in October 2023 before falling back below 7 percent, then rising back above it, and lately just a hair under 7 percent again. That’s more than a full percentage point swing in just a few months.

While 1 percent might not sound like much, it can make a big difference in how much house you can afford over the long run. For example, Bankrate’s mortgage calculator shows that if you buy a $350,000 home with a 20 percent down payment, the monthly payment for principal and interest on a 30-year loan with a 7 percent interest rate is $1,862. The same loan at 8 percent brings those monthly payments up to $2,054 — $192 higher every month. That’s more than $2,300 each year, or $69,000 over the life of the loan.

Of course, it’s impossible to predict where rates will land eventually. But here are three instances in which it might make more sense to wait out the market for at least a while:

If home values in your area are dropping: The country’s overall median home price may have hit a record high in June, but some individual areas have still seen price declines. Take Austin, Texas, for example: Redfin data shows that the median price in Austin in June 2022 was $616,444. A year later, that figure was down to $600,000 even, and by June 2024, it had fallen to $564,000. Such declines may not be done yet, so it could pay to be patient for a bit longer.

If inventory in your area is increasing: When there are more properties on the market to choose from, buyers enjoy more bargaining power. Since many buyers have been sitting on the sidelines due to the interest rate environment, many areas have seen a jump in inventory. Even so, according to NAR, the country overall had 4.1 months worth of housing supply in June — an improvement over recent months, but still too low to meet demand.

If your personal finances could use some love: The biggest reason to wait is if your current financial situation is not ideal. For example, if you are expecting a sizable commission check or bonus, an inheritance or some other windfall that would make a big difference in your down payment, waiting until it arrives makes sense. And if your credit score is low, waiting is also smart. Take some time to improve your credit and pay down your debt so you can qualify for better loan terms.

Analyze your local market carefully

Deciding whether to buy a house now or wait depends a lot on where you want to call home. Regardless of national headlines, real estate is a local game and can vary greatly from one market to another, even within the same state.

Consider this June Redfin data from North Carolina’s Research Triangle cities of Raleigh and Chapel Hill, only about 30 miles away from each other: Raleigh homes cost a median of $450,000 and spend about 16 days on the market before selling. But in nearby Chapel Hill, the median home costs a much higher $667,500 and sells in less than half the time (just 6 days). That’s a notable difference.

In today’s homebuying market, it’s more important than ever to find a real estate agent who really knows your local area — down to your specific neighborhood — and can help you successfully navigate its unique quirks.

What if there’s a recession?

The odds of a recession within the next 12 months now stand at 32 percent, according to Bankrate’s most recent survey. And as you might imagine, recessions are a risky time to buy a home. If you lose your job, for example, a lender will be much less likely to approve your loan application.

Even if a recession doesn’t affect you directly, if your area is hard-hit, that could have a serious effect on the local real estate market. Fewer people with the means to buy means a lower chance of homes selling, which could keep homeowners from listing and decrease your options as a buyer.

There are some potential upsides to buying a home during a recession, though, if you’re financially able to do so. Notably, there will be less competition, which could help you find a great property that you otherwise couldn’t.

Next steps

Trying to buy a house right now might feel overwhelming, but waiting too long can present challenges as well. Review your finances in detail, and think about how much you’re able to pay upfront as a down payment. Be sure to take the pulse of the town in which you’re hoping to live. Then, talk with an experienced local real estate agent to figure out whether you should buy now or wait until the market is a bit more friendly to your bank account.

FAQs

Is now a good time to buy a house?

We’re in a volatile time for real estate. Prices are at record highs, mortgage rates reached 20-year highs last year, and some economic experts still believe we are heading for a recession. A high-interest-rate climate gives you less buying power, so buyers who opt to wait for lower rates may find themselves able to afford a higher-priced house, due to the lower mortgage payments. But there’s no guarantee that rates will actually go down. Ultimately, whether it’s a good time to buy depends on your personal circumstances. If you need to move now, then go for it: Shop around for the best deal possible, and remember, you can always refinance down the line if rates do decrease.

Can I buy and sell a house at the same time?

Yes — lots of people buy a new house while selling their old one at the same time. However, it does create some additional challenges, especially if you’re showing your home while still living in it. It’s important to work with an expert real estate agent who can help you find the right buyer and the right listings to look at. You’ll also want to stay close with your loan officer, to make sure the complexities of putting the proceeds from your sale toward your new down payment are as smooth as possible.

Is the housing market going to crash?

Housing experts do not think so. While there is certainly some economic uncertainty swirling right now, most experts believe that the housing market will not crash. Home prices may decline in some areas, but it won’t be catastrophic — think of it as more of a soft landing.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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How To Sell Your House In Oregon Fast | Bankrate

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The Oregon real estate market is hot, with strong demand for homes and buyers competing for limited inventory. Home prices are well above the national averages and are steadily increasing, with the current statewide median price at $513,100, up 3.6 percent from last year, according to April Redfin data.

Even amid such favorable market conditions, though, it typically takes a month for homes to go into contract. But the good news is, there are ways to speed up the process. Here’s a primer on how to sell your house in Oregon — fast.

How fast can you sell a house in Oregon?

As of April 2024, the median number of days a home spent on the market in Oregon was 28, per Redfin. That’s two days longer than the previous year, and it means it could be a month before your home even goes into contract. (Then, you’ll have to wait even longer for your buyer’s financing to be approved.)

Need to sell faster?

If you list during the window of Oregon’s best time to sell a home, which tends to be between May and July, things will likely move a bit faster. But if you need to speed things up considerably — say, if you’re relocating ASAP for a new job or you need the cash urgently — you have several options to consider.

Sell for cash: One of the quickest ways to sell a home is by working with one of the many companies that buy houses for cash in Oregon. Cash sales means there’s no need to wait on financing, and businesses of this type specialize in speed. Often you’ll have a cash offer within 24 hours and close in a matter of weeks, or even days. But there’s a caveat: You are not likely to get as much money for your home as you would selling the traditional way.

Use an iBuyer: Working on a similar model, iBuyers are known for providing instant offers on homes. However, they also don’t pay top dollar, and they may charge steep fees to boot. One of the largest iBuyers, Opendoor, buys homes in the Portland area.

Price aggressively: Pricing your home to sell is another tactic to consider. This involves studying the market and listing your home to undercut area prices — something that should be done with the guidance of a real estate agent who knows your local market very well.

Sell as-is: If you list your house as-is, you’re telling buyers “what you see is what you get.” As-is listings mean you aren’t willing to negotiate back and forth about repairs with potential buyers, which saves time.

Selling your home in Oregon

If you decide to sell the traditional way, with the assistance of a local Realtor, here are some of the factors to consider and discuss before you list the home.

How should you price your listing?

Getting the pricing right is one of the biggest challenges for home sellers. If you aim too high, you might turn off prospective buyers. And if you aim too low, you might leave money on the table. Pricing your home competitively usually involves your agent pulling and analyzing comps, or similar homes in the neighborhood that have recently sold. This helps you figure out how much your house is worth by giving you a sense of what local buyers have paid for other properties similar to yours,

What should you fix before selling your home in Oregon?

Put yourself in the buyer’s shoes to figure out what you need to repair before listing your home. Obvious issues, like a leaky shower, cracked kitchen tiles or carpeting that’s been ripped up by your dog, should be addressed before they turn off prospective buyers. But you don’t need to go crazy — ask your agent what’s worth doing and what’s not.

Is it worth upgrading your home before you sell?

Probably not. Major upgrades, like full kitchen remodels, rarely recoup their costs. Plus, supply chain issues and labor challenges may delay your sale. Look into faster (and cheaper) ways to increase your home’s value, such as adding an energy-efficient thermostat or repainting the front door.

Should you pay to stage your home?

First impressions are everything, and home staging is one way to make sure your house impresses everyone who sees it. From virtual staging that can make the property pop in online photos to in-person staging with furniture rentals and more, the costs of home staging can vary widely, so consult with your Realtor to see if your home could benefit from this service.

What do you need to disclose to a buyer?

As an Oregon home seller, you will need to complete the state’s seller’s disclosure form, a lengthy document that outlines any defects that could impact the value of the home. The buyer has five business days to revoke their offer after reviewing this disclosure statement. Additionally, if your property is part of a homeowners association, be prepared to hand over documents that share the association’s financials, bylaws and more.

The closing

Selling a home isn’t free, in Oregon or anywhere. Home sellers should be prepared to direct a portion of their proceeds to cover a range of closing costs and other expenses.

Costs of selling a home in Oregon

Realtor commissions: One of the biggest costs associated with selling a home is the money owed to the real estate agent(s) involved in the transaction. A listing agent typically receives between 2.5 and 3 percent of the home’s sale price — on a median-priced $513,100 Oregon home, 2.5 percent comes to more than $12,800. Depending on the deal you strike, you may or may not have to pay your buyer’s agent’s fee as well.

Title insurance: This expense is your responsibility as the seller, and the cost depends on the purchase price of your home. For example, a standard Oregon title policy on a $400,000 home is $1,150, while the price jumps to $1,500 for a $600,000 property.

Transfer taxes: While sellers in many states must pay real estate transfer taxes to shift ownership to the buyer, most counties in Oregon don’t charge this common tax. One exception is Washington County (home to Beaverton, where Nike’s corporate headquarters are based): For sellers here, it’s standard practice to split this fee with the buyer.

Escrow fees: You will likely need to pay a fee for the escrow account that manages funds for the transaction; this cost may be able to be split with the buyer.

Attorney fees: Home sellers in Oregon are not required to hire an attorney. But it’s smart to consider adding one to your team anyway, to oversee the legal details and make sure the paperwork is in order.

Capital gains taxes: Because property values have skyrocketed in many parts of Oregon, there may be tax implications from your home sale. Whether you will be subject to capital gains taxes depends on several factors, including how much of a profit you make on the sale.

Next steps

Ready to get moving on selling your house in Oregon? Your next step will depend on what’s more important to you: speed or price. If you need to sell quickly, and are willing to sacrifice a bit of profit to make that happen, reach out to an iBuyer or cash-homebuying company in your area. They will be able to close a deal fastest. If time is not a pressing factor and you’d rather hold out for the best price possible, start looking for local Realtors who can help you bring in top dollar for your Oregon home.

FAQs

Is it a good time to sell a home in Oregon?

Yes. Oregon is currently experiencing a seller’s market, with high prices and not enough inventory to meet demand. April 2024 data from Redfin shows that the state has only a two-month supply of available homes for sale — it typically takes a five- or six-month supply for a balanced market that doesn’t favor either buyers or sellers.

Do you need an attorney to sell your house in Oregon?

No, Oregon law does not require sellers to hire a lawyer for the transaction. However, hiring legal expertise is usually a good decision. Selling a home is complex, with lengthy contracts, legal disclosures and a lot of money at stake. A real estate attorney can make sure your interests are protected and that any issues are resolved properly.

Who pays for the title policy in Oregon?

The seller is usually responsible for paying for the title insurance policy in Oregon. The cost varies based on the price of the home: The more expensive a home is, the more expensive the title policy will be.



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How To Sell Your House In 2024: A Step-By-Step Guide | Bankrate

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Key takeaways

Selling a house can take several months from start to finish, so it’s crucial to plan ahead and stay organized.

Start by setting a timeline to stick to and hiring a local real estate agent who knows your market well.

Be sure to get professional-quality listing photos taken — National Association of Realtors data shows that 100 percent of homebuyers look at listings online.

Most home sellers dream of a stress-free sale in which they simply list their house, quickly find a qualified buyer, collect the cash and hand over the keys. If only it were that simple! In reality, selling a home involves many moving parts — some that you can control, and some that are out of your hands.

For example, geography might influence how long your house lingers on the market or how high of a list price you can get away with. In locations where competition is hot and inventory is low, odds are you’ll sell faster and command a higher price. Conversely, in places where home sales have cooled, you will likely have to work harder to attract the right buyer.

The real estate market has shifted significantly since the frenzied heights of the pandemic. Today, high prices are combining with high interest rates to create serious affordability challenges: The median price for a home is more than $400,000, and mortgage rates hit a 22-year high in 2023. It’s no wonder many buyers have little choice but to stay on the sidelines until either rates or prices (or both) come down.

So, as a seller, it’s smart to be prepared and control whatever factors you’re able to. Things like hiring a great real estate agent and maximizing your home’s online appeal can translate into a smoother sale — and more money in the bank. Here’s a nine-step guide to how to sell your house successfully.

Set a timeline: Start prepping your home well before you plan to list.

Hire an agent: An experienced agent who knows the market well can best position your home for local buyers.

Determine upgrades: Take on only projects your house really needs — you don’t have to upgrade everything.

Set a realistic price: Your agent can help you find the sweet spot.

List with pro photos: Buyers look at homes online first, so be sure you have a solid digital presence.

Review offers: Consider all factors, not just the highest dollar amount.

Weigh closing costs: Keep track of how much more you’ll need to pay at the closing table.

Consider an attorney: Legal expertise can help protect this significant financial transaction.

Close: Make sure you have all your documentation ready.

1. Set a timeline for selling your home

Selling a house is a major undertaking that can take several months from start to finish — or much longer, depending on local market conditions. So it makes sense to plan ahead and stay organized.

At least two or three months before you plan to list, consider getting a pre-sale home inspection. This isn’t mandatory, but it can be wise, especially in an older home. For a few hundred dollars, you’ll get a detailed inspection report that identifies any major problems. This alerts you in advance to issues that buyers will likely flag when they do their own inspection later. By being a couple steps ahead, you might be able to speed up the selling process by doing needed repairs in tandem with other home-prep work. Then, by the time your house hits the market, it should be ready to sell, drama-free and quickly.

About a month before listing your house, start working on deep cleaning in preparation for taking listing photos. Keep clutter to a minimum, and consider moving excess items to a storage unit to show your home in its best light.

2. Hire an agent who knows the market

The internet makes it easy to delve into a real estate agent’s experience, helping you choose the right person to work with. Look up agents’ online profiles to learn how long they’ve been in the industry, how many sales they’ve closed and what professional designations they may have earned. Pay attention to how and where they market their listings, and how professional their listings’ photos look.

“Any designation they’ve earned is a huge plus, because it’s a sign they’ve taken the time to learn about a particular niche,” says Jorge Guerra, president and CEO of Real Estate Sales Force in Florida.

Some homeowners might be tempted to save on paying a commission and instead sell their home themselves, without an agent. This is known as “for sale by owner,” or FSBO. The amount sellers stand to save on that fee can be significant, usually 2.5 percent or 3 percent of the total sale price. On a $400,000 home sale, for example, 3 percent comes to $12,000.

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Keep in mind: Real estate commissions are often negotiable.

However, a listing agent does a lot to earn their fee. For example, they can expose your house to the broadest audience and negotiate on your behalf to garner the best offers possible. If you go it alone, you’ll have to personally manage prepping your home, marketing it, reviewing buyers’ offers and handling all the negotiations and closing details.

When working with an agent, keep in mind too that real estate commissions are often negotiable. As a result, you might be able to get a break at the closing table. But, depending on the deal, you may still have to pay your buyer’s agent’s fee.

3. Determine what to upgrade — and what not to

Before you spend money on costly upgrades, be sure the changes you make will have a high return on investment. It doesn’t make sense to install new granite countertops, for example, if you only stand to break even on them, or even lose money. Plus, these improvements may not be necessary, particularly if inventory levels are low in your area (which they are in most areas these days). A good real estate agent will know what local buyers expect and can help you decide what needs doing and what doesn’t.

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Keep in mind: Inexpensive DIY projects can also go a long way. A fresh coat of neutral paint and spruced-up landscaping are low-cost ways to make a great first impression.

Updates to the kitchen and bathrooms often provide the highest return on investment. But inexpensive DIY projects can also go a long way: A fresh coat of neutral paint and spruced-up landscaping are low-cost ways to make a great first impression.

4. Set a realistic price

Even in competitive markets, buyers don’t want to pay more than they have to, so it’s crucial to get the pricing right. Going too high can backfire, while underestimating a home’s value might leave money on the table. To price your home perfectly from the start, consult local real estate comps. This information about recently sold properties in your neighborhood gives you an idea of what comparable homes around you are selling for, thus helping you decide how much you might reasonably ask.

“A frequent mistake sellers make is pricing a home too high and then lowering it periodically,” says Grant Lopez, a Realtor at Keller Williams Heritage in Texas and the former chairman of the San Antonio Board of Realtors. “Some sellers think this practice will yield the highest return. But in reality, the opposite is often true: Homes that are priced too high will turn off potential buyers, who may not even consider looking at the property.”

In addition, homes with multiple price reductions may give buyers the impression there’s something wrong with it. So it’s best to eliminate the need for multiple reductions by pricing your home to attract the widest pool of buyers from the start.

5. Include professional listing photos

This step will likely involve your real estate agent hiring a photographer to take marketing photos of your home, and registering the listing with the local MLS (multiple listing service). Here are some tips to get your home market-ready:

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Keep in mind: You’ve probably heard of curb appeal, but pros say online appeal is now even more important.

Take professional photos: With the ubiquity of online house-hunting these days, high-quality photos are critical. A pro photographer knows how to make rooms appear bigger, brighter and more attractive. The same goes for the property’s exterior and outdoor areas.

Focus on online appeal: You’ve probably heard of curb appeal, but professionals say online appeal is now even more important. In fact, 100 percent of homebuyers use the internet to search for a home, according to the National Association of Realtors, so online listings are crucial. “Your home’s first showing is online,” Guerra says. “The quality of your web presentation will determine whether someone calls and makes an appointment or clicks on the next listing.”

Stage it and keep it clean: Staging a home entails removing excess furniture, personal belongings and unsightly items from the home and arranging rooms for optimal flow and purpose. If you’re in a slower market or selling a luxury home, investing in a professional stager could help you stand out. Nationally, professional home staging costs an average of around $1,808, according to HomeAdvisor, but prices range between $792 and $2,840.

Clear out for showings: Make yourself scarce when potential buyers come to view your home. Let them imagine themselves in the space, free from distraction. “Seeing the current homeowner lurking can cause buyers to be hesitant to express their opinions,” says Lopez. “It could keep them from really considering your home as an option.” Generally, buyers are accompanied by their real estate agent to view your home. You can also ask your own agent to be present at showings.

6. Review and negotiate offers

Once buyers have seen your home, offers will ideally start rolling in. (Keep in mind, though, that with mortgage rates currently high, the number of buyers who can still afford to buy might be smaller than you’d like.) This is where a real estate agent is your best advocate and go-to source for advice. If your local market favors sellers, buyers will likely offer close to asking price, or possibly even above. On the other hand, if sales are slow in your area, you may have to be open to negotiating.

When you do receive an offer, you’ll have a few choices: accept it, make a counter-offer or reject the offer. A counter-offer is a response to an offer in which you negotiate on terms and/or price. You can offer a credit for fresh paint and carpet, for example, but insist on keeping your original asking price in place. Counters should always be made in writing and provide a short time frame (ideally 48 hours or less) for the buyer to respond.

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Keep in mind: You might be tempted to simply go with the highest bid, but look closely at other aspects of the offer, too.

If you’re lucky enough to get multiple offers, you might be tempted to simply go with the highest bid. But look closely at other aspects of the offer, too, such as:

Form of payment (cash versus financing)
Type of financing
Down payment amount
Contingencies
Concession requests
Proposed closing date

Be mindful that if a buyer is relying on lender financing, the property will have to be appraised. If there’s any shortfall between the purchase price and appraised value, that gap will have to be made up somehow, or the deal could fall apart.

7. Weigh closing costs and tax implications

In any real estate transaction, both parties must pay at least some closing costs. It has long been the custom that the seller pays the real estate agents’ commissions, which usually total between 5 and 6 percent of the home’s sale price. This can be a big chunk of change: For example, on a $400,000 home, 5 percent comes to $20,000. However, that may soon change due to a federal lawsuit, and as of late summer, homebuyers may pay their own agent’s commission.

Some other closing costs commonly paid by the seller include transfer taxes and recording fees. Additionally, if the buyer has negotiated any credits to be paid at closing — to cover repairs, for example — the seller will pay those, too. Your real estate agent or the closing agent should provide you with a complete list of costs you’ll be responsible for at the closing table.

The good news is that you may not owe the IRS taxes on your profits from the sale. It depends on whether it was your primary residence, how long you lived there and how much you make on the sale. If you’ve owned and lived in your home for at least two out of the previous five years before selling it, then you will not have to pay taxes on any profit up to $250,000. For married couples, the amount you can exclude from taxes increases to $500,000. If your profit from the home sale is greater than that, though, you’ll need to report it to the IRS as a capital gain.

8. Consider hiring a real estate attorney

Some states require sellers to have a real estate attorney to close on a home sale, but many don’t. Regardless of your state’s laws, the expense is worth it to protect such a large financial transaction. It may cost you a couple thousand dollars, but there’s a lot more money than that at stake, and it’s always smart to have a legal expert give everything the OK.

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Keep in mind: Even if your state doesn’t require you to hire a real estate attorney, it’s worth the expense to protect such a large financial transaction.

In addition, an attorney can help fill out paperwork correctly, review contracts and documents, identify potential issues and ensure the sale goes as smoothly as possible. If you’re not sure where to find one, your real estate agent can probably recommend someone.

9. Gather paperwork and close

Lots of paperwork is needed to properly document a home sale, so keep it organized all in one place to help things go more quickly. Your agent can help you make sure you’ve got everything you need. Some of the main documents you’ll need to compile include:

Original purchase contract
Property survey, certificate of occupancy and certificates of compliance with local codes
Mortgage documents
Tax records
Appraisal from your home purchase
Homeowners insurance
Home inspection report, if you had one
Seller’s disclosure statement

Finally, bring all that paperwork — plus payment of any fees and the keys to give the new owners — to the closing. Once everything is signed and handed over, your house is sold!

FAQs

What should I do first when selling my house?

Putting your home on the market is a major step, and like most big life decisions, it’s best to get organized before you dive in. The process can take several months, so once you decide you want to sell, the best thing to do first is to consider your timeline. When do you need to move? What date do you hope to be closed by? Make sure you give yourself enough time to prep the property for showings and find a real estate agent you trust before actually putting the home on the market.

What is the fastest way to sell my house?

If you’re wondering how to sell your house in a hurry, consider foregoing a traditional agent-assisted sale in favor of selling to a cash homebuyer or iBuyer. These companies make quick cash offers and close home sales very quickly — in a matter of a few weeks, or even less. But you likely won’t get as high of an offer as you’d get if you sold on the open market.

Do I need a lawyer to sell my house?

That depends on what state you live in. Some states require a real estate attorney to manage any sale transaction, some don’t. Even if it’s not a legal requirement, though, consider hiring one anyway — real estate contracts can be very complicated, and there is a lot of paperwork involved and a lot of money at stake. It’s worth the cost to have legal expertise looking out for your interests.

Do I need a Realtor to sell my house?

No. It’s perfectly possible to sell a home on your own with what’s called a for sale by owner (FSBO) listing. However, going without a real estate agent means all the work an agent would normally do — researching comps, determining the best list price, coordinating showings, negotiating with potential buyers — is up to you to do yourself. It’s a lot of work, and a big time commitment.



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How To Sell Your House In Tennessee Fast | Bankrate

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If you want to sell your home fast in Tennessee, you may find yourself facing some headwinds. The supply of homes jumped by more than 20 percent in April, according to data from Tennessee Realtors, and homes typically spend nearly two months on the market before going into contract.

If time is not on your side, don’t worry: There are ways to speed up a sale in the Tennessee housing market. Read on for everything you need to know about how to sell your house in Tennessee fast.

How fast can you typically sell your home in Tennessee?

It takes a long time for the typical home to sell in Tennessee: 53 days in April, according to Redfin data. That’s almost two months just to go into contract; after that you’ll probably need to wait several more weeks for the buyer’s financing to be approved. That might move a bit faster in late spring and early summer, which are historically the best times of year to sell, and it also varies from one market to the next. In Memphis, for example, that metric is 42 days — much faster than 53, but still a long time.

Need to sell faster?

If you can’t wait that long, or can’t afford to, there are ways to get a deal done on a tighter timeline.

Sell to an iBuyer: Depending on where in Tennessee you live, you might be able to get a quick cash offer in from an iBuyer. Offerpad buys properties throughout the Nashville metro area, for example, and Opendoor buys homes in the Chattanooga, Nashville and Knoxville markets. Be aware that you’ll pay for the convenience of speed, though: iBuyers typically offer below-market-value prices, and they may charge fees.

Sell to a cash homebuyer: There are many other companies that buy houses for cash in Tennessee, too, all of which work on a similarly speedy timeline (and offer similarly low prices). These companies usually buy homes in any condition, no matter how rough, which can make them good options for homes in serious disrepair.

Sell as-is: Another option is to list your house on the open market, but with an “as-is” disclaimer. As-is listings indicate that the seller isn’t going to negotiate with a buyer about repairs, which speeds up the process by eliminating the back-and-forth bargaining that can often hold things up.

Sell with an agent: You can also take the traditional route to selling your home, listing it with a local real estate agent — just be upfront that speed is your number-one concern. An experienced agent will be able to market your home with that in mind, which may include pricing aggressively to motivate potential buyers.

Selling your home in Tennessee

If you’re selling the traditional way, here are some topics to discuss with your agent before you list.

How should you price your listing?

How much is your house worth? Your agent will be an invaluable resource in helping you determine the right asking price for your home. By reviewing local comps, you’ll get a sense of what buyers have been willing to pay for nearby homes with similar characteristics to yours. You’ll want to put a finger on the pulse of the local market, too. For example, while prices have jumped by more than 18 percent in Morristown over the past year, according to Redfin, they declined by more than 3 percent in Memphis.

What should you fix before selling your home in Tennessee?

To fix or not to fix? That is the question that so many homeowners have as they get ready to list properties for sale. While visible issues, like water damage from a leak, should be addressed, there are some repairs you don’t need to bother making. It’s smart to ask your agent what can stay as-is, and what might turn off prospective buyers.

Is it worth upgrading your Tennessee home before you sell?

It’s tempting to think that a major renovation — a new kitchen, for example — will dramatically increase the sale price of your home. But the reality is that most big projects don’t recoup their full costs at resale. And waiting on contractors will only delay your sale further. Instead of investing a large chunk of cash in a remodel that may or may not pay off, consider cheaper ways to boost your property value.

Should you pay to stage your home?

Professional staging can bring some star power to your property. Think of it as dressing up for a big date: You want to turn that special someone’s head. Staging your home might be as simple as decluttering and organizing, or it might mean renting furniture to make an empty room come to life. Your agent will be able to tell you if your home could benefit from some extra love.

What do you need to disclose to a buyer?

Like many states, Tennessee requires home sellers to complete a residential property disclosure form. This lists any defects that could impact the value of the property, including any past history of flooding and whether the new owner will need to pay for flood insurance. It’s a standard form, and you simply need to be honest about what you know. You may also need to update it just before closing to verify that nothing has changed in the interim. In addition, if your property is part of a homeowners association, be ready to hand over documentation about the HOA’s finances and bylaws.

The closing

Closing is the final step in the sale process — you’re almost there! But first, there are closing costs to consider. Closing costs in Tennessee are some of the cheapest anywhere in the U.S., but it’s still smart to budget for the amount you’ll have to shoulder.

The biggest line item for sellers has historically been real estate commissions, which usually means handing over 2.5 or 3 percent of the sale price to your agent. Traditionally, the seller has paid the buyer’s agent’s commission fee as well — but that may change at the end of the summer as a result of a major lawsuit settlement. Here are a few of the other closing costs Tennessee sellers typically pay.

Title insurance: There isn’t a set standard for which party covers the cost of title insurance in Tennessee. It can be costly — more than $2,500 on a $500,000 property — but your agent can try to negotiate for the buyer to split the cost with you.

Attorney fees: The state of Tennessee does not require that you hire an attorney to sell your house. However, it’s wise to hire one to represent your interests in the deal. You’ll need to pay for their time, but the peace of mind you’ll get knowing that the contract is buttoned up is priceless.

Seller concessions: If the buyer’s home inspection unearths any problems with the property, they may ask you to help cover part of their closing costs. It’s up to you whether to agree with the concessions, but this is not unusual.

Mortgage payoff: If there is still an outstanding balance on your home’s mortgage, that will be paid off from the proceeds of your sale. Again, this is not unusual.

Next steps

It’s time to figure out what matters more to you: Do you want to sell your house in Tennessee as fast as possible? Or do you want to make as much money as possible? Typically, you’ll need to sacrifice one part of that equation. If speed is crucial, reach out to a cash-homebuying company or iBuyer in your area. If maximizing your profit is more important, reach out to a local real estate agent.

FAQs

How long does it take to sell your home in Tennessee?

Homes spent a median of 53 days on the market before selling in April 2024, according to Redfin data. After that, you typically have to wait a few more weeks for the buyer’s financing to come through before you can close. If you want to move faster, iBuyers and cash-homebuying companies can close an entire deal within a few weeks, and sometimes a few days — but they won’t pay you as much as you’ll make on the open market.

How much do homes sell for in Tennessee?

As of April 2024, the median sale price for homes in Tennessee was $387,500, according to Redfin. Location makes a big difference here, though — for example, the median price in Nashville was a much higher $485,000, while in Jackson it was just $263,500.

How much are closing costs in Tennessee for the seller?

You’ll need to pay your real estate agent his or her commission fee when you sell your home in Tennessee, and depending on the details of your deal, you may have to pay your seller’s agent as well. Beyond that, closing costs for sellers here will likely add up to a few thousand dollars. According to a recent study from Assurance, the average closing costs for a home sale in the Volunteer State come to $3,090.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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Should I Sell My House Now Or Wait? A Guide | Bankrate

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Key takeaways

Late spring and early summer are generally considered the best times to sell a house.

Traditionally, low mortgage rates and short supply make it a good time to sell.

While today’s rates are relatively high, low inventory is still keeping sellers in the driver’s seat in most markets.

If you’re considering selling your home, it’s critical to understand the current real estate market dynamics. The volatility that dominated the market amid pandemic-related pressures may have eased, but there are still serious challenges.

For one thing, mortgage interest rates shot up recently, reaching highs not seen in more than 20 years. While they have backed down from the 8 percent threshold seen in October 2023, Bankrate’s weekly survey of large national lenders shows that, as of late May, the average 30-year fixed mortgage rate was 7.17 percent. That still-high reality makes mortgage payments more expensive and is driving more than a few potential buyers to the sidelines — certainly not ideal if you’re on the selling side of the equation.

Complicating things further, home prices are very high as well. April 2024’s nationwide median sale price was $407,600, a record high for the month of April and very close to the National Association of Realtors’ highest-ever monthly median of $413,800, recorded in June 2022. While high prices are typically good news for sellers, they obviously require buyers who can afford the purchase, and the high interest rates are making that harder. Regardless of pricing trends, though, with housing inventory still at a low 3.5-month supply, the nation overall is still solidly a seller’s market.

However, if you were wary of a home sale last year, that may have been wise. ATTOM Data Solutions’ 2023 U.S. Home Sales Report shows that, while prices did rise throughout last year, they did so at the slowest pace in more than a decade.

So, amid all these mixed signals, is now a good time to sell your house? Here are some insights to help you sort through the question.

Should I sell my house now?

There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. If popular opinion is any guide, now may still be a good time to sell despite the evolving market. According to Fannie Mae’s April 2024 Home Purchase Sentiment Index, about two-thirds of respondents — 67 percent — feel it is a good time to sell.

Local market dynamics also play a large part in whether it’s a good or bad time to sell, says Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida, and author of “The Brilliant Home Buyer.” Some markets may be riding high, while others remain sluggish. “In some areas, selling now is the right thing to do because prices are still climbing,” Severance says. “In other markets, it might be best to wait to sell until interest rates come down and stay down, which will spur sales once again.”

When is a good time to sell a house?

Historically, spring and summer are usually the best times of year to sell a house. But beyond seasonality, there are many factors that might make selling your home a wise decision. Often the reasons are based on financial calculations, cost of living expenses and other considerations, but there may also be other factors that make selling your home the right choice. These include:

If rates are low
This is not the case currently, but low interest rates entice more prospective buyers to enter the market, which is advantageous for sellers. An increased number of buyers shopping for homes often leads to bidding wars and drives up home prices, meaning you can likely sell your home for a solid profit.

If supply is short
A shortage of housing inventory — which is the case currently — also drives up demand and prices for available homes. What’s more, when housing supply is low, homes on the market tend to sell faster.

If you’re ready to downsize
Downsizing may be a more budget-friendly choice than continuing to maintain a larger, costlier home. For older homeowners, downsizing may even be a necessity: “If you can’t handle the stairs anymore, or if there are more repairs than you can manage, it may be a good time to sell,” says Rick Albert, a broker and director of business development for Lamerica Real Estate in Los Angeles.

If you need to relocate
If you’re relocating to a new state for a job or want to enjoy your retirement in a new area, and you need the profits from the sale to put toward your next place, selling may be unavoidable. “The time to sell is when you need to sell,” says Severance. “It’s a no-brainer to sell if you have somewhere to go.”

When is a good time to wait?

Here are some common factors that might make prospective sellers hold off on listing their home for sale:

If rates are rising
Rising mortgage interest rates often mean a smaller pool of buyers who can afford the price you want. Selling a home isn’t free, so if you can’t maximize your price, you might want to wait.

If you’ve recently refinanced
If you recently refinanced your mortgage, it may not make financial sense to sell just yet. You may actually lose money by doing so, when considering the closing costs and other fees typically paid as part of the refinancing process.

If you’re upsizing
The cost to purchase a new, bigger home may be unaffordable, particularly in a hot market. Don’t get in over your head — take the time to be sure your finances can accommodate the type of home you want. Bankrate’s home-affordability calculator can help you crunch the numbers.

If your home is in poor condition
Got a long list of repairs waiting to be completed around your home? You may want to postpone selling until some of the work can be done. It’s important to show your home in its best light in order to land the most favorable offer possible. If the home is in disrepair or there’s unfinished work, you are less likely to get a good price.

If you have no game plan
If you’re simply trying to time the market to make a profit and have no plan for after your home is sold, it may be best to wait. “It doesn’t make sense to sell if you don’t know what your next play is,” says Albert. “Where are you going? Where is that money going to be spent? If you don’t have a plan, then you shouldn’t sell.”

What about the NAR lawsuit?

There are also upcoming commission changes to consider when deciding whether to sell now or wait. New rules are set to take effect at the end of the summer as a result of a federal lawsuit settlement involving the National Association of Realtors and several large brokerages.

Longstanding tradition has held that a home seller paid the commission fees for both real estate agents in the transaction, their own and their buyer’s. But under the new rules, a buyer might be responsible for paying their own agent, which could save the seller money. However, these changes have not yet received final court approval, and waiting for them to take effect could be risky — and would mean missing out on prime selling season.

What if there’s a recession?

According to Bankrate’s most recent Economic Indicator Survey, the U.S. economy has a 33 percent chance of entering a recession by early 2025. While that is very far from a sure thing, it’s worth asking: Should you sell your house during a recession? Or even just before one?

The answer really depends on your personal circumstances. “If you’re concerned a recession is coming, it’s generally better to sell now instead of waiting,” says Jade Lee-Duffy, a San Diego–based broker. However, “selling during a recession might be beneficial if you’re looking to downsize or rent. This could cut your overall costs, and you could put the proceeds into a retirement account, go on vacation or invest.”

Remember, recessions typically bring with them job losses and general belt tightening, which can severely limit the number of house-hunters looking to buy. More buyers will be able to afford a home, and qualify for a mortgage, before a recession than after.

Tips to sell your home

If your answer to “should I sell my house now?” is yes, here are some steps you can take to get the best deal possible.

Find a good local agent: Advice and guidance from a professional real estate agent can be invaluable, particularly amid a hot or unpredictable housing market. Take the time to interview several candidates in your area, and ask friends or family members to recommend agents they’ve had a good experience with. “A Realtor can help you create a game plan to get your home organized and in shape to present it in the most favorable light,” says Jen Horner, a Realtor with Masters Utah Real Estate.

Make repairs if needed: To land the best offer for your home, know what needs fixing first. “Sellers need to understand that they only have one chance to make a first impression,” Horner says. “Your Realtor can walk the property with you and make suggestions for preparing your home to hit the market.”

Declutter and stage the interior: You should also make an effort to tidy your home, allowing prospective buyers to see the spaces clearly. “Less is always more,” she says. “The fewer items in a room, the larger it will feel. Remove any personal items and unnecessary furniture.” If tidying is not enough, consider hiring a home stager. “Staging can help show the buyer how to optimize the space.”

Add curb appeal outside: Your home’s exterior is another part of making a good first impression, and it’s worth freshening up the curb appeal before buyers see it. That can include upgrading landscaping and walkways, or even something as simple as a fresh coat of paint on the front door.

Alternative ways to sell

If you need to sell your home quickly and don’t have time for the often-lengthy process of a traditional sale, iBuyers and cash homebuying companies may be worth considering.

An iBuyer — Opendoor and Offerpad are two of the biggest — typically makes an offer on homes within 24 to 48 hours. If you accept it, the entire process can often be completed within a few weeks or less. Cash homebuyers also allow you to sell a home remarkably fast, sometimes in as little as one week, and they usually buy as-is, meaning there’s no need to make repairs at all.

Before proceeding with either method, though, it’s important to understand one major downside: While you gain speed and convenience when you sell to these companies, you sacrifice profit. They usually offer much less money for your home than you could get through a traditional sale. And iBuyers may charge steep fees as well, so be sure to read the fine print before signing anything.

Bottom line

Deciding to sell your home, whether now or later, is a major decision that requires careful consideration. Your future plans and goals should be a significant part of the equation, as well as your financial needs and the realities of the local market in your area. If you decide to proceed with listing your home, working with an experienced real estate agent who knows your community well can increase your chances of a smooth (and lucrative) sale.

FAQs

Is it a good time to sell a house?

Deciding whether to sell your house depends on your personal circumstances and the specific dynamics of the market in your area. “It depends on where you are selling,” says Katie Severance, a Florida Realtor. “Interest rates are up, causing prices in some markets to go down, and yet in other areas, prices are still climbing. It’s all geographically driven.” If you need to sell now, whether it’s a good time or not, an experienced local agent can guide you through the process.

What are the hardest months to sell a house?

Typically, spring and summer are considered the best times to sell, when there’s the most activity from buyers and the most listings entering the market. The worst times to sell are typically the dead of winter, when bad weather keeps people off the roads and holiday planning occupies their minds. December, January and February are probably the hardest months for home sellers — but activity picks up again in the spring.

Should I sell my house now, before there’s a recession?

Recessions mean belt tightening and potential layoffs. If your area is hard-hit by job losses, the number of qualified buyers will be severely limited — if you’re concerned, it might be best to sell before that (potentially) happens. However Bankrate’s most recent Economic Indicator Survey shows only a 33 percent chance of a recession.

Do I pay taxes when I sell my house?

If you make a very substantial amount of money on the sale of your home, you may be subject to capital gains taxes. The exact tax rate you’ll pay is impacted by various factors, including how much of a profit you make, how long you’ve owned the home, your marital status and more. You’ll also have to pay any outstanding property taxes still owed at the time of sale, and many states have a real estate transfer tax that may be owed as well.



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10 Tips To Sell Your Home For More Money | Bankrate

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Even in a seller’s market, where inventory is scarce and bidding wars are common, it still pays to invest some time and energy in positioning your home to sell for top dollar. This can involve a variety of steps, from working with a real estate agent who truly understands your local market to spending some money to make sure your home looks its best for buyers. Here are 10 tips for selling your home that Realtors say will separate you from the competition — and help you bring in a higher price.

1. Find a real estate agent

Working with a skilled local real estate agent who knows your area inside and out can help you sell your home more quickly, and often, for more money. In fact, data from the National Association of Realtors shows that between July 2022 and June 2023, homes listed without the assistance of a Realtor sold for a median price of $310,000, while those sold with one fetched a median of $405,000. Interview several candidates before you commit to one agent — the better you get along, the smoother the process is likely to be.

2. Invest in value-adding improvements

Determining which home improvements to invest in can be daunting, and the costs can add up quickly. The key is to spend your money on projects that will provide the most return on your investment.

Minor kitchen upgrades are typically a wise choice, says San Diego–area Realtor Jade Lee-Duffy. “The heart of the home is the kitchen, and many buyers will judge a property by its kitchen,” she says. Just don’t go overboard: “While a complete overhaul of this space can run into the tens of thousands, a minor update is where you can gain the greatest return,” she says. “Think about resurfacing cabinets, replacing countertops, a fresh coat of paint or updating the fixtures and hardware.”

Updating a bathroom is another smart investment, says Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida, and author of “The Brilliant Home Buyer.” “Renovated kitchens and baths are the ‘money rooms’ — those that add the most value to a home,” she says.

3. Up your curb appeal

As the saying goes, you don’t get a second chance to make a first impression. “Make sure your front yard is free of debris, the bushes are pruned and the grass has been cut,” says Lee-Duffy. “Also, add some bright potted plants by the front door to make buyers feel welcome.”

Some other easy updates that can improve curb appeal include:

Touching up exterior paint
Adding window flower boxes
Installing a new mailbox
Adding new mulch around shrubs and trees

4. Get a pre-listing inspection

Investing in a home inspection before putting your property on the market is another step to consider. “You don’t want any unexpected surprises,” says Lee-Duffy. “It’s best to find out beforehand if there are any issues that you can fix, before buyers find out on their own.” That would give them negotiating power for a lower price or, worst case scenario, a reason to back out of the deal. So it may be worth a few hundred dollars for the peace of mind.

There is, however, a downside to a pre-listing inspection: “Beware, because once a seller becomes aware of an existing defect and does not correct it prior to listing, they are obligated to disclose it to a buyer,” says Severance. “Defects that a buyer learns were known but not disclosed, prior to accepting an offer, can kill the deal.”

5. Highlight the positive with professional photos

Spending a bit of money on high-quality photography can go a long way toward helping your home sell for a higher price. “The majority of people search for properties online,” says Lee-Duffy. “If the photos pop, it can translate into a higher sale price — and sell faster, too.”

It’s OK to leave some things to the imagination when it comes to your home’s online listing, though. “I advise against photographing every square foot of the home,” says Severance. “The goal of photographs is not to give all the goodies away online; it’s to make a buyer want to see more — to whet their whistle enough to entice them to see it in person. If they don’t come see the house, they probably aren’t making an offer.”

6. Stage your home

When it comes to home staging, says Severance, there are two rules of thumb: less is more and keep it neutral. “It’s very important to capture buyers’ interest from the front door,” she says. “Pay extra attention to the entry: Repaint; place flowers; buy a new area rug, an impressive mirror or a dramatic piece of art.”

Remove objects and clutter that visually shrink a room, such as large ottomans or too many plants, and remove everything from the kitchen counters except for one or two new-looking appliances. “And don’t forget to stage the deck or patio, because that is an extension of the house that can make a small home feel much larger than it is,” Severance adds.

You can do the staging work on your own or up the ante by hiring a professional stager.  A pro will average around $1,800, according to HomeAdvisor.

7. Set the right asking price

Identifying the best price for your home can be critical to your success. “Setting the price too high can be detrimental and prevent buyers from walking through your front door,” says Lee-Duffy.

How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.

“Good pricing requires the expertise to thread the needle,” says Severance. “List at a number that is lower than comparable properties, in order to draw attention to it, but not so low that you will be disappointed if you only get one offer right at list price.” If enough buyers are enticed, you might even set the stage for a bidding war.

8. Remove personal items

“The goal of any showing is for the buyer to envision their own belongings in the space,” says Severance. So, while family photos and other knickknacks might seem like they have no bearing on how much money your home commands, they really do matter — especially if you are still living in the home while you’re trying to sell it.

If buyers are distracted by personal items, then chances are they won’t be able to see themselves in the space, and will not end up making an offer. “Buyers are thinking of their own furniture, where it will go and how it will fit. It’s the house they came to see, not the items inside of it,” she says.

9. Be ready to move fast

Once your property is listed on the market, things can happen quickly. It’s important to be well prepared ahead of time so that you can be as responsive as possible to potential offers. “Fill out all the necessary documents, such as any seller disclosures, and have paperwork for recent repair work, home renovation costs and utility bills on-hand for any buyer requests that come in,” says Lee-Duffy.

Sellers who are slow in reaction time or unresponsive can lose buyers, adds Severance. “If the buyer feels that they are not being dealt with fairly, they are very likely to walk away,” she says.

10. Use your head, not your heart

Finally, try to remove emotion from the equation and see the process as a simple transaction — your home is no longer “home” but a product for sale. It’s not unusual for prospective buyers to request credits or repairs, and it’s easy as a seller to take offense, so try to have a clear understanding of what issues and items you may be willing to make concessions on.

“It’s important to take emotion out of it and remember that the buyer usually doesn’t expect to get everything they ask for,” says Severance. “Take a closer look at which requests are valid and fair, and offer something. The cost to you is not in giving the concession — it’s the expense of losing the buyer, putting the property back on the market, starting all over again and getting a potentially lower offer.”

FAQs

How can I maximize my net proceeds from selling my home?

To maximize how much you earn from the sale, it’s important to put in some work to get your property market-ready. This includes improving your home’s curb appeal, investing in professional listing photos and staging your home before opening it up to buyers. Your real estate agent can provide home-selling tips based on your specific situation.

Do I need a real estate agent to sell my home?

No, you don’t necessarily need a real estate agent to sell your house. Selling without one is called a “for sale by owner” transaction, and they are not unusual. However, partnering with an agent can make the process much easier for you — agents help with important tasks like determining the right asking price, creating a listing that will attract buyers and hosting showings and open houses. Later in the process, they’ll negotiate with buyers and guide you through the closing, ensuring your interests are protected.

How can I sell my house fast?

If you’re in a hurry to move, consider selling to a cash homebuying company or iBuyer. These businesses buy properties for cash, often in as-is condition, and they can close deals far faster than a traditional market sale — often in just a couple of weeks or less. The downside is that you’ll likely earn less money selling this way than you would with a traditional home listing.



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Selling A House In Massachusetts | Bankrate

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In a hurry to sell your Bay State home? The odds of selling relatively quickly are in your favor: Homes here spend much less time on the market than in most parts of the country, according to Redfin data.

But everything is relative, and if you need to relocate for work right away, for example, or need the proceeds from the sale ASAP, you may be hoping to speed the process along. There are a variety of ways to do just that, including working with one of the many cash-homebuying firms in the area. Here’s what you need to know to sell your house fast in Massachusetts.

How fast can you sell your home in Massachusetts?

The Massachusetts housing market is quite robust. Home prices here are high and getting higher: February Redfin data shows that the state’s median home price was $576,000, a nearly 10 percent jump from February 2023. And homes typically spent a median of 28 days on the market before going to contract — five days less than last year and a much quicker timeline than the national median of 48 days on market.

Your Massachusetts home won’t necessarily sell in this exact amount of time, though. A variety of factors can impact how fast a home sells: The time of year, your home’s size and condition and your exact location in the state all factor into the equation.

Need to move faster?

If you want to sell your home even faster, here are some options to consider that can expedite a sale:

Cash homebuyers: For maximum speed, your best bet is forgoing the traditional listing process and selling directly to a cash homebuying company, whether it’s a nationally known name like We Buy Houses or a smaller, local firm. These operations can often close a sale in just a couple weeks, or sometimes even faster. However, you will likely make less of a profit than you would on the open market.

iBuyers: Online homebuying firms known as iBuyers operate in a similar manner and with similar speed. Opendoor, one of the biggest, buys homes in the Boston area.

Listing as-is: Selling your home in as-is condition makes the process move faster because you don’t waste time on back-and-forth negotiations over repairs — the buyer knows upfront that what they get is what they see.

Flexibility: You can still sell relatively fast by listing your Massachusetts home in the traditional way. Be direct with your real estate agent about your need for speed, so that they can market it accordingly. This may require a bit of flexibility on your part, like being willing to price the home slightly lower to attract buyer attention or offering seller concessions to sweeten the deal. Your agent will know what is likely to work best in your specific market.

Selling your home fast for fair market value

If you want to ensure your home sale brings in the highest price possible, but you’d still like to move relatively fast, work with a local real estate agent. Look for someone who has experience in your specific area — and ideally, in your specific neighborhood — so you’ll have the best possible idea of your home’s market value. And discuss these topics before you list:

How should you price your listing?

Your agent will be instrumental in developing your pricing strategy. While you can take steps on your own to estimate what your house is worth, a pro agent will walk you through detailed local comps to understand what area buyers have recently paid for properties similar to yours.

Is it worth upgrading before you sell?

If you’re thinking about investing in a big renovation project, keep in mind that it could cost a pile of money, which you aren’t likely to fully make back — and take a long time, which you are trying to avoid. Rather than delay your sale with a major undertaking, consider quick and inexpensive upgrades, like a fresh coat of paint or upping your curb appeal.

What should you repair before selling?

As you think about what to repair versus what not to bother with, take a simple approach: Are there any glaring issues that would turn you off as a buyer? Put those at the top of your priority list. They will likely be worth the investment. If you’re anxious about potential problems, you might even want to consider a pre-listing inspection. Essentially, you’ll hire a home inspector to identify any issues, which gives you the option to address them before a potential buyer finds them.

Should you pay to stage your home?

First impressions are crucial in real estate. If you have the interior-designer touch, your home might already look open-house-ready. But if not, or if you’ve already moved out and the place is totally empty, it might be worth hiring professional stagers to help it shine. This can really make a home come to life and impress potential buyers, which in turn can help you sell faster, and maybe even for more money. Ask your agent whether your home could benefit from staging.

What do you need to disclose to the buyer?

Unlike in many states, which require home sellers to fill out lengthy property disclosures, Massachusetts law requires that you share just two pieces of information: whether the home has lead paint in it and whether it uses a septic system. If the buyer asks you a specific question, though, you must be honest. For example, if you know there have been problems with the plumbing in the bathroom and the buyer asks about it, you must tell the truth.

If you live in a property that belongs to a homeowners association, you will also need to hand over documents detailing the association’s financial health and the bylaws that a buyer will need to follow.

Closing day

Once you start preparing for closing, the deal is almost done — but it’s important to understand how much it’ll cost you to get to the finish line. Here are some common closing costs for sellers in Massachusetts:

Realtor commissions: The way real estate commissions work will change in July 2024, thanks to a major lawsuit that was recently settled. Until then, at least, the seller typically pays commission fees for both their own agent and their buyer’s. This expense usually comes to around 5 or 6 percent of the home’s sale price — for a median-priced $576,000 Massachusetts home, 5 percent is $28,800.

Title insurance: There is no law or set standard for who covers this cost in Massachusetts, but it’s customary for sellers to pay for title insurance in many states. The cost varies depending on the home.

Transfer taxes: The seller also usually covers the cost of real estate transfer taxes in Massachusetts. The rate depends on several factors but is typically $2.28 for every $500 of value. On a $576,000 sale, that adds up to around $2,626.

Escrow and wire-transfer fees: You may be charged nominal fees to cover the cost of the money being held in escrow and any money that needs to be wired in payment (for example, if you are paying off your mortgage with part of the sale proceeds).

Attorney fees: A lawyer must be present at real estate closings by Massachusetts law. This is often the lawyer representing the buyer’s lender, though — you as the seller are not required to hire your own lawyer. However, it’s smart to do so anyway when dealing with legal contracts and large amounts of money. Attorney fees will vary for each transaction.

Find a real estate agent

Massachusetts real estate can be complex. Selling to a cash homebuyer makes it simple, and fast. But if selling for top dollar is more important to you than sheer speed, working with a knowledgeable local real estate agent is your best path. To find the right agent, interview multiple candidates. Look for an agent who not only has experience, but has a working style that makes you feel comfortable.

FAQs

What’s the fastest way to sell my house in Massachusetts?


The fastest route to a sale is to work with a cash-homebuyer or an iBuyer. These companies can make offers within 24 hours, or sometimes even more immediately, and most can close the entire deal within a couple weeks. Keep in mind, though, that in exchange for this speed, you will likely make less money from the sale.

Can I sell my house without a Realtor in Massachusetts?


Yes you can. Selling your home without a professional agent is called a for sale by owner or FSBO transaction, and while it saves you from having to pay a listing agent’s commission, it is also quite a lot of work. Any tasks that would normally be done by a Realtor, including creating and marketing the listing, coordinating showings and negotiating with buyers, fall on your shoulders as a FSBO seller.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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