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Do Selling Sunset Stars Actually Sell Homes? Us Breaks It Down

August 13, 2024 No Comments

Real estate agents who look like supermodels sashaying down spectacular glass staircases overlooking glistening infinity pools. Asking prices with so many zeros on, you don’t even know how to say them out loud. Colleagues who spend more time flirting, fighting and eating in moodily lit small-plate restaurants than they do actually working.

It’s fair to say the world of TV real estate shows is far from a reality for your average broker who has to, you know, sell houses for a living. Instead, shows like Netflix’s Selling Sunset are all about the glamorous, often ridiculous cast of characters and their personal lives; it just so happens that they conduct them against a backdrop of glamorous, even more ridiculous properties. (According to a source, Netflix cast members like Emma Hernan, Chrishell Stause and Chelsea Lazkani are paid between $10,000 and $40,000 per episode. When it comes to their clothes, an insider says they are often loaned pieces to wear.)

While we do hear numbers being thrown around and deals being done, these shows are way more about drama than detail. It begs the question, are these agents even making money from real estate, or are they just TV stars now?

According to research and on-the-record insights from many insiders in the new issue of Us Weekly, some of the most prominent stars haven’t made as much as you’d think from real estate lately. Sure, it’s a tough market globally, but the truth is, many of them are too busy enjoying life in the spotlight to work the demanding hours that being a successful real estate agent demands.

Mary Bonnet, for her part, is keen to emphasize that a lot of what really goes on in the office is kept private, either because clients demand it or simply because the deals in question aren’t big enough for Netflix. “I would say probably 80 to 90 percent of my sales have never been shown,” she tells Us. “I do a lot of real estate deals that are like two to four million and, if they’re closer to two, most of the time they don’t get shown. They want to show the glitz and glamour.”

Understandably, Jason Oppenheim is particularly defensive about any suggestion that his team aren’t proper realtors. When Chrissy Teigen tweeted that she had never come across any of the agents on the L.A. market before, he fired back: “The insinuation that the agents on our show are not experienced, successful or licensed evidences a complete disregard for the facts. Even a superficial investigation would identify previous team photos, hundreds of millions in transacted sales and more than 50 years of combined licensed real estate experience from these agents.”

We got our hands on figures for what these folks have sold from May 2023 to May 2024 through public information. Sure, several of these agents may have sold houses off-market that haven’t been made public — but these numbers are surprising.

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

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Should I Sell Or Rent My House In Today’s Market? | Bankrate

August 11, 2024 No Comments

FluxFactory/GettyImages; Illustration by Hunter Newton/Bankrate

Key takeaways

Deciding whether to sell your house or rent it out depends on personal circumstances, such as immediate cash needs and future housing plans.

Selling might be the better option if you need the proceeds to pay for your next home or stand to make a large profit.

Renting it out could be a good choice if you’re looking for additional income or if you’re moving temporarily and plan to come back.

There are many reasons why a homeowner might want to move. But whatever your reason, one question still applies: What should you do with your current home? Depending on your financial situation and your local housing market, you might consider renting it out rather than selling. If you’re caught in the sell versus rent debate, here are some factors to consider, including the costs.

Should I sell or rent my house?

A home is the biggest financial asset most people own, and deciding what to do with it shouldn’t be taken lightly. There are pros and cons to both options: For example, selling gets you a large windfall of cash all at once, while renting earns you smaller increments of steady monthly income from your tenants. If you have somewhere else to live and can afford to hang on to the house, renting it will also allow you to continue building equity as home values go up. Take a look at the following scenarios to determine which path is best for you.

When selling your home is a good choice
If you need the cash to pay for your next house

If your ability to buy a new home relies on accessing the money tied up in the current one, then selling is the best option. That way, you can take all your proceeds from the sale and put it toward your new down payment. Buying a new home while selling your current one can be a tricky balancing act, so be sure to work with an experienced real estate agent who can guide you through the process.

If you have no interest in being a landlord

Managing a rental property is time-consuming and often challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord or paying for a third party to take care of things instead.

If you stand to make a significant profit

Property values have risen all over the country over the past few years, and home prices remain high. Depending on how long you’ve owned your home, how much you paid for it and how hot your local market is, selling could net you a significant windfall. Take a look at nearby real estate comps to see how much homes similar to yours have been selling for.

If you are eligible for capital gains tax exemptions

If you do sell your home for a profit, you may be able to exclude up to $250,000 of capital gains from the sale (or up to $500,000 for married couples filing jointly) from your taxes. For this to apply, the home must have been your primary residence for at least two out of the last five years, among other criteria.

When renting your home is a good choice
If your move is temporary

If your move is short-term and you plan on returning to your current city in the future, you may want to keep your home and rent it out in the meantime. Knowing there will be a place for you to live when you return provides peace of mind — and when you factor in closing costs, it may even cost less than selling and purchasing another home at a later date.

If you want the rental income

Extra income can be hard to turn down! But if you decide to rent your current home and want to buy another one with a mortgage, keep in mind that lenders will consider rental income when determining your financing. In some cases, a lender will only allow a portion of your rental income to be counted as an income source. In addition, you will be carrying two mortgages at once, so make sure this is something you are financially able to take on.

If rental demand in your area is high

Is your home in a hot neighborhood with lots of buzz? Is it in an extremely desirable school district, near a vacation destination like a beach, or close to the best amenities in town? Evaluate the rental demand in your area — renting is much less stressful when finding a tenant is fast and easy. Research the local housing market to determine what other similar properties are charging in rent. You can also speak to a local agent or property management company to learn more about the rental demand in your neighborhood.

If you expect home values to rise in your area

It’s impossible to foresee with 100 percent accuracy where the housing market is headed. That being said, you may be able to make an informed prediction. If you expect that your current home’s value will increase within a few years or less, you might want to consider renting it out now and selling later, to take advantage of the price appreciation.

Selling vs. renting your home: Costs to consider

Both renting and selling a home will incur costs. One of the most important things to think about is whether the rental income you’d receive will be enough to cover the property’s mortgage and upkeep.

To determine how much rental income you can reasonably expect to earn, take a look at what other similar properties are charging and weigh that against the costs of owning and maintaining the property. From there, you can gauge whether you’ll be able to recoup your expenses, and maybe even turn a profit.

Costs of renting out a home

Mortgage: Even though you’ll be earning rental income, you’re still responsible for paying the mortgage, which may or may not be fully covered by the rent you bring in. The same goes for property taxes.

Insurance: Landlord insurance can cover certain costs, such as damage to the home or someone getting injured on the property. You can expect this to cost roughly 25 percent more than the typical homeowners insurance policy — which you’ll also still have to pay for.

Maintenance and repairs: You’ll need to keep up with routine maintenance to ensure the home is fit for tenants. As a rule of thumb, budget at least 1 percent of the home’s value every year (more if it’s an older property) to pay for maintenance.

Finding a tenant: To find a tenant, you’ll have to get the word out. Consider any marketing costs you may incur, such as taking out an advertisement. You may also need to pay for background and credit checks of potential renters — though you might be able to pass this nominal expense on to the tenant.

Vacancies: Consider, too, the cost of vacancies between tenants. If a tenant moves out and you don’t have a replacement, that’s income you’re losing out on.

Property management fees: Hiring a property manager makes being a landlord less onerous, but it will eat into your profits as well. These companies tend to charge a percentage of the rent price, typically around 10 percent.

HOA fees: If your home belongs to a homeowners association, you’ll also be responsible for HOA fees, which vary considerably depending on what type of amenities are offered.

Costs of selling a home

Agent commissions: For ages, the typical real estate commission has been between 5 and 6 percent of a home’s sale price, split evenly between the seller’s agent and the buyer’s agent and paid entirely by the seller. That is about to change, however, as a result of a legal battle recently settled by the National Association of Realtors. Beginning this summer, depending on the deal, buyers may be responsible for paying their agent’s commission directly. That said, a single agent’s fee is still a significant expense: On a $400,000 sale, for example, 2.5 percent comes to $10,000.

Home improvements: To get your home in shape to sell, you’ll likely have a few services to pay for. These might include sprucing up the landscaping, a thorough deep cleaning and making any necessary repairs. And paying a pro to stage your home can increase its desirability, potentially bringing in a higher price.

Closing costs: Sellers typically incur some closing costs beyond Realtor commissions, too, such as attorney fees, transfer taxes and title insurance.

Mortgage payoff: If you still have a mortgage on the home, once you’ve sold it, some of the proceeds will go toward paying off the remainder of your loan.

What if there’s a recession?

Some economists still predict a recession in the country’s near future. According to Bankrate’s most recent Economic Indicator Poll, the odds of a recession over the next 12 months are 33 percent. Before you make a final decision on whether to sell your house or rent it out, ask yourself how a serious economic downturn might affect your finances. Is your job stable? Is your savings strong? Would you still be able to manage two mortgages during a recession, or the possibility of less rental income than expected? If the answer to any of these questions is no, selling may be the safer option.

Bottom line

The question “should I sell or rent my house?” requires careful consideration of your financial situation, lifestyle and local housing market. To help guide your decision, consider the costs of both options, whether you’ll return to your current location anytime soon and if you’re interested in being a landlord.

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

August 11, 2024 No Comments

David Gn Photography/Getty Images

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.

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

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Should I Wait Till August to Sell My Home to Save on Commission? – NerdWallet

August 11, 2024 No Comments

If you sell your home after the middle of August, cheers: You could end up pocketing the money that previously would have gone to the buyer’s agent.

But before you celebrate, consider the downside of waiting until late summer to list your home for sale: House prices tend to fall after August. The price drop might surpass the money you save on commission.

New policies governing real estate commissions are set to go into effect Aug. 17 as a result of the settlement of an antitrust lawsuit. The amended policies give home sellers more room to negotiate what to do about the buyer’s commission — whether they want to use it to induce competitive bids or keep it to themselves entirely.

The choices complicate this season more than usual, for both buyers and sellers. Here’s what to know to help you and your agent come up with the best strategy for you.

What, exactly, is changing?

Starting Aug. 17, sellers will no longer set the commissions for real estate agents who represent buyers. Buyers will decide how much their agents will be paid. Even when sellers are willing to pay some or all of the commission for the buyer’s agent, the amount will no longer appear on the multiple listing service.

For decades, and up to Aug. 17, MLS listings have been required to advertise how much commission the seller is offering to buyer’s agents. The information wasn’t visible to home buyers but could be viewed in agent-only fields of the MLS.

When sellers set commissions for buyer’s agents, they’re sometimes advised that offering a low commission will attract fewer buyer’s agents — and therefore fewer competing offers. The plaintiffs in the antitrust suit argued that the policy of requiring commission info on the MLS was designed to discourage them from negotiating lower commissions for buyer’s agents.

Can sellers start offering 0% to buyer’s agents today?

Technically, sellers have always had the option of offering zero or minimal commission to the buyer’s agent. But most sellers have offered such commissions to motivate buyer’s agents.

The money may come directly out of the seller’s pocket, as has been the norm.

The money may come directly out of the buyer’s pocket.

The buyer and seller may split the payment.

The buyer may pay indirectly, by adding their agent’s commission to the price of the house when they make an offer.

Here’s an example of how an indirect payment might work for a buyer who is paying a 3% commission. The buyer finds a house costing $400,000. The 3% commission is $12,000. The buyer offers $412,000 and asks the seller to transfer $12,000 to the buyer’s agent at closing.

Keep in mind that sellers, having equity, tend to have more access to cash than first-time home buyers, who accounted for 33% of buyers in April. A seller who’s willing to pay all or some of the buyer’s commission may end up with more offers, and a higher final price, than one who flatly takes that commission off the table.

How much money could sellers keep, though?

As a home seller, you stand to save thousands of dollars on commissions if the buyer pays their agent directly or indirectly.

Let’s say the agents in your town typically collect 2.5% on each side of the transaction, and you sell your house for $400,000. Each agent earns $10,000. If you pay both agents, you’ll shell out $20,000 and end up with $380,000.

But if the buyer pays their agent, you would pay your agent $10,000 and walk away with $390,000. That’s $10,000 more.

On the other hand, buyers might request bigger closing cost credits, subtracting from the seller’s bottom line, Chuck Vander Stelt, a real estate agent in Valparaiso, Indiana, said in an email. Or buyers might offer less because they will bear the expense of paying their own agents.

Even after Aug. 17, sellers might keep offering commissions to buyer’s agents as motivation, Vander Stelt added. These offers could remain standard in many markets, multiple agents said. Offering commissions to buyer’s agents will still be permissible under the new policies, but those offers will no longer appear on the MLS. Listing agents can communicate the information on brokerage websites, or in phone calls, emails and texts.

What would be the cost of waiting?

You might be tempted to keep your home off the market until the new policy goes into effect. But waiting might not be a wise move, because it would mean sitting out homebuying season.

Home prices peak from May through August, then drop off. In 2023, the median existing home cost $410,100 in June, $405,600 in July, $404,200 in August — and $392,700 in September, according to the National Association of Realtors. If you list your house after mid-August, you probably won’t close until October or later, when prices are even lower.

With house prices peaking in summer, you might come out ahead by selling during the busiest time of the year, even if you end up paying the buyer’s agent’s commission.

“I don’t really have anybody holding off until after August to list their house because they want to save a couple bucks,” says Michelle Doherty, an agent in northern Virginia with RLAH Real Estate. She says her clients will be ready to sell in June or July, “depending on how things progress with prepping the house.”

Can I negotiate the listing agent’s commission too?

You might save money if you don’t pay the buyer’s agent’s commission. But what about the commission that you pay the listing agent for selling your home? You might not see an immediate reduction. If a cut in commissions from 3% to 2% is your hope, you’ll probably mope.

“First of all, nothing’s going to change quickly, OK?” says Stephen Brobeck, senior fellow for the Consumer Federation of America. “The industry will resist, and consumers don’t really focus on this much.”

Vander Stelt said that he sees headlines that proclaim “the end of the 6% commission.” That’s a mistaken belief, he said. “Overall, the average commission costs per transaction on a percentage is likely to come down over the coming years,” he said. But not instantly.

What if I list before Aug. 17 but sell after?

Months can pass between the day you put your home on the market and the day you hand over the house keys at closing. What if the Aug. 17 policy change happens in the middle of this period? The National Association of Realtors provides guidance for two scenarios:

Your home’s MLS listing offers to pay the buyer’s agent’s commission, and you sign the contract accepting the purchase offer before Aug. 17: You’ll pay the commission, even if the closing occurs on Aug. 17 or after.

Your home’s MLS listing offers to pay the buyer’s agent’s commission. But in accordance with the new policy, that offer is removed from the MLS on Aug. 17. Sometime after that date, you accept the purchase offer: That defunct commission offer on the MLS is no longer valid. You and the buyer will negotiate how to take care of the buyer’s agent’s commission.

When you put up your home for sale, you’ll sign a listing agreement with your agent. NAR says that listing agreement might have to be amended if it says that an offer to pay the buyer’s agent must be made “on the MLS.” As of Aug. 17, that clause in the listing agreement will conflict with the new policy. Your agent might ask you to sign an amended listing agreement before that date.

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

In News

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

August 11, 2024 No Comments

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.

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

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The Realtors settlement is already changing the way some Americans buy and sell homes | CNN

August 10, 2024 No Comments

CNN
—

The seismic settlement announced by the National Association of Realtors earlier this month has not yet been approved, but it is already sending shockwaves through the real estate industry.

The mere prospect of a future settlement has already caused some Americans to change their behavior when buying and selling their homes. Some prospective homebuyers said they plan to restart their housing search after the new rules are in place in hopes of finding lower home prices, while some homesellers aren’t waiting for the new rules to take effect in July to lower — or even eliminate — the commission they offer to buyers’ agents.

Housing experts say the $418 million settlement will effectively demolish the current real estate business model, in which home sellers pay both their agent and their buyers’ agent, which critics say inflated housing prices.

If approved by a judge, the settlement comes with new rules for Realtors.

“This is unchartered territory,” said Debra Dobbs, a Realtor in Chicago, of the potential new rules.

The new rules could help lower home prices, experts say.

That’s what Jeremy Cannon, a 34-year-old teacher in Corona, California, hopes.

Last year, Cannon and his wife tried to buy their first home, putting in offers for multiple properties.

“All of our offers got denied because other people were bidding higher than us,” Cannon said. “We were already trying to bid above asking price for pretty much every place.”

At the time, Cannon decided to hit pause on his dream of owning a home. But, to Cannon, the new rules established by the NAR settlement could potentially clear what felt like an intractable hurdle for him: the high cost of housing.

Sales commissions, traditionally shared between a buyers’ agent and the agent who lists a home on the market, are usually between 5% and 6% of a home’s selling price. The median price of a home in the US is $417,000, according to census data, meaning the average seller could be paying more than $25,000 in brokerage fees.

Groups of sellers brought lawsuits against the NAR for this practice, alleging it was a violation of antitrust laws.

Under the proposed settlement terms, sellers’ agents will no longer be required to offer to share their commission with buyers’ agents, uncoupling commissions from home prices and opening the door to a more competitive housing market.

Many experts believe commission costs have been baked into home listings prices. Lower commissions could mean lower home prices.

“I think it could be helpful,” Cannon said. “I hope it might be cheaper and bring the prices of houses down more.”

He now plans to restart his home search this summer.

A price drop would be a much-needed reprieve for Cannon and others looking to buy a home: the median sales price of a new house has surged 21% since January 2020, according to census data.

The new rules also require agents to enter into written agreements with their buyers. Many agents plan to stipulate that if a home seller does not agree to pay their commission, their buyer is on the hook for that money.

But Cannon said if buying a home becomes more affordable, he would be willing to pay out-of-pocket for an agent, as long as it is “someone who has my interests in mind.”

Matt Hanley, a 49-year-old who works in insurance in Minnesota, has lived in his home since 2007. He was reacquainted with how real estate transactions work when he recently purchased a new home.

“We were confused,” he said. “I’m like ‘wow, I’m surprised the seller has to pay my agent’s commission.’ It seemed like a conflict of interest.”

Hanley now plans to list his home in April. After the NAR settlement was announced, though, he changed course: Instead of offering to pay a commission that would be split between his agent and his future buyers’ agent, he asked his agent to write “0%—negotiable” as the buyers’ agent commission on his home’s listing page.

“Why wait for the settlement? This is common knowledge now,” Hanley said. “I’m going to try to be at the start of this bell curve.”

Hanley’s experiment may be premature, though. The new rules will prohibit agents’ compensation from being included on centralized listing portals, which some critics say led agents to push more expensive properties on customers. But, for the time being, buyers’ agents will still be able to see that Hanley isn’t offering them compensation, potentially disincentivizing them from showing his home to clients.

But Hanley pointed to favorable conditions in his market as a reason that he believes buyers may still consider purchasing his home, even if they have to pay their realtor out-of-pocket.

“We’ve got everything going for us. We have no inventory in our area and we’re selling at peak time, so we said, ‘Let’s try it,’” he said. “If someone really wants it, they’re going to come up with their buyers’ fee.”

“They should be reporting to their agents, we should be reporting to ours,” he added.

Mariya Letdin, an associate professor of business at Florida State University, said this settlement has helped raise awareness that people have a right to negotiate. Even so, Letdin said it’s possible that the status quo is maintained.

“It’s up to the consumers on both the seller side and the buyer side to bring this to wide use,” she said. “I think it will take more than just a ruling. I think it will take consumers advocating for themselves and not being passive.”

“They now have a legally protected voice, and they should use it if we want to see change happen,” Letdin said.

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

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Should you sell your home now or wait for the Realtor settlement this summer? | CNN Business

August 10, 2024 No Comments

New York
CNN
—

Listing your home in the spring used to be a no-brainer. But a major real estate shakeup is complicating the equation.

That shakeup is coming from a $418 million settlement the National Association of Realtors announced last week with groups of homesellers that could go into effect as early as July. The settlement will eliminate the long-standing standard 6% commission paid by the seller, which could ultimately make it cheaper to sell your home post-settlement.

But is it worth waiting to list your home and potentially risking a sale?

Would you rather be unloading boxes from a moving truck in a potential snowstorm or heatwave as opposed to when it’s a pleasant 60-degree day?

That’s one of the main reasons spring has been the most popular season to buy a home.

For families with children, it’s also an ideal time to close on home because it would allow them to stay in the same school.

By springtime, people are also more likely to have paid off any debt they took on over the holidays, said Phil Crescenzo Jr., the southeast division vice president at Nation One Mortgage Corporation.

The settlement could present a major downside to homebuyers.

Under the current system, the buyer’s agent’s commission is baked into the total they pay for a home. That meant buyers could pay that added cost over the entire length of their mortgage.

But after the settlement is finalized, many may have to pay flat fees upfront to agents. That would add to the financial burden for homebuyers – especially first-timers. And that’s on top of coming up with all the money they need for a home downpayment, closing costs, a lawyer and all the other fees associated with buying a home.

Buyers, therefore, may have more of an incentive to close on a home sooner rather than later.

There’s also no guarantee a federal court will sign off on the settlement as is. The unknowns associated with that are enough of a reason not to wait to list your home, said Crescenzo. From conversations he’s had with real estate agents, he said he’s not seeing any signs that the NAR settlement is delaying listing activity.

“There is no reason to wait,” Mike Downer, a broker associate with Coldwell Banker Realty in Naples, Florida. “The seller does not currently need to provide any compensation to the buyer’s agent.”

The biggest advantage of waiting to list your home until the settlement is finalized is being able to negotiate an agent’s commission down more than they otherwise would’ve been able to. On top of that, they may be able to avoid having to pay the buyer’s agent’s commission.

That could allow them to pocket thousands of dollars more on the sale of their home.

If selling your home boiled down to a business decision, Mike Downer, a broker associate with Coldwell Banker Realty in Naples, Florida, said he’d try to list it as soon as possible.

“If I am trying to test the market, there would be no need to list it 1723291007,” he added.

But in his view, the NAR settlement shouldn’t be a major consideration when it comes to timing.

“An agent who provides value will always be worth more than an agent who does not provide value,” because they can help you net more money for the sale of your home, he said.

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

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How To Sell Your House In Tennessee Fast | Bankrate

August 10, 2024 No Comments

Tetra Images/Getty Images

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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Is It a Good Time to Sell a House or Should I Wait in 2024?

August 10, 2024 No Comments

Selling a house is a big decision that requires careful consideration, especially in today’s uncertain economic climate. Given the dramatic rise in mortgage rates over the past year, this is a question on the minds of many sellers who are considering selling their homes.

The latest survey reveals that the percentage of respondents who believe it is a good time to sell a house has increased while those considering it a bad time to sell have decreased. Let’s take a closer look at the factors that can influence whether it’s a good time to sell your house.

Is It a Good Time to Sell a House in 2024?

So, let’s unpack the current trends to see if selling your house right now is a smart move for you.

Sellers Hold the Cards (For Now)

There’s a clear trend emerging: sellers are currently in a sweet spot. The Fannie Mae Home Purchase Sentiment Index® indicates a significant 67% of consumers believe it’s a good time to sell a house. That’s a substantial increase since the end of 2023, even though mortgage rates have been steadily climbing.

This suggests two key things. First, there are plenty of potential buyers out there, fueled by factors like job security and continued income growth (though at a slower pace). Second, with a limited number of houses available on the market, sellers have the upper hand in negotiations.

So, if you’ve been considering selling, this could be a golden opportunity to get top dollar for your property. Here’s the thing: while bidding wars may not be as common as they once were, a well-maintained house in a desirable location is likely to attract multiple offers, giving you the leverage to negotiate a favorable sale price.

A Market with Nuances

However, the market isn’t without its complexities. While home prices are expected to continue rising, the pace of that increase is likely to slow down compared to the rapid acceleration seen in recent years. Additionally, mortgage rates have been on the rise, making affordability a challenge for some buyers. This means that while there are still plenty of buyers out there, they may be more cautious about overspending. As a seller, this translates to the need to price your house competitively to attract serious offers. Don’t expect bidding wars to be the norm anymore.

Making a Strategic Decision

So, should you sell your house now? The answer depends on your individual circumstances. Here are some factors to consider that go beyond national trends:

Your Timeline: Are you flexible on your move-out date? If you can afford to wait, you might benefit from a period of mortgage rate stabilization. But if you have a pressing need to sell, the current market conditions could still be favorable.
Local Market Dynamics: National trends provide a helpful backdrop, but your local market can be quite different. Research what’s happening in your area to get a better understanding of buyer demand and listing prices. Talk to a local real estate agent to get a feel for the specific inventory levels and competition you’ll face.
Your Financial Picture: Are you carrying a high mortgage balance? If so, selling now could help you free up some cash and potentially reduce your monthly housing costs. However, factor in any selling costs and potential moving expenses to ensure the sale makes financial sense for you.

Beyond the Data: Considering the Human Factor

Remember, the decision to sell your house is also a personal one. Consider your emotional attachment to the property and how ready you are for a change. If you’re unsure, don’t feel pressured to jump on the bandwagon.

The Takeaway

The housing market is constantly evolving, but right now, the data suggests that sellers have the upper hand. If you’ve been thinking about selling your house, there’s no reason to wait. However, carefully consider your individual needs and the state of your local market before making a final decision. Consulting with a qualified real estate agent who is familiar with your area can be a valuable step to ensure you get the most out of your sale. They can help you with pricing strategies, navigating negotiations, and ensuring a smooth transaction.

Source: Fannie Mae
Should I Sell My House Now or Wait?

So, the question remains, should you sell your house in 2024 or wait until 2025? The answer is not straightforward, as it depends on a number of factors specific to your personal situation. Some of the key considerations are discussed below. Selling a house is a major decision that requires careful consideration of various factors, including market conditions, personal circumstances, and financial goals.

Assess Current Market Conditions

The first step in deciding whether to sell your house now or wait is to evaluate the current state of the real estate market in your area. Consider the following:

Local Housing Market: Research recent sales data for homes similar to yours in your neighborhood. Are properties selling quickly or languishing on the market? A seller’s market, characterized by high demand and low inventory, might be favorable for selling now.
Home Prices: Monitor trends in home prices in your area. If prices have been steadily increasing, it could be an advantageous time to sell.
Interest Rates: Keep an eye on mortgage interest rates. Lower rates might attract more buyers to the market, potentially leading to a quicker sale.

Evaluate Your Financial Goals

Your personal financial goals and needs play a significant role in the decision-making process:

Profit Margin: Consider how much equity you have in your current home. If you’ve built substantial equity and can sell at a profit, it might be a good time to capitalize on your investment.
Downsizing or Upsizing: Are you planning to downsize or upsize? Your plans for your next home can influence the timing of your sale. If you’re downsizing, the current market conditions might align well with your goals.

Life Circumstances

Your personal circumstances should also be factored in:

Job Relocation: If you’re moving for a new job or career opportunity, the timing of your move might be determined by external factors.
Family Changes: Life events like marriage, divorce, or growing families can impact your housing needs. Consider how your changing family circumstances play into your decision.

Market Trends and Projections

While it’s impossible to predict the future with certainty, researching market trends and projections can provide insights into potential market shifts. Consult with real estate professionals who can offer expert opinions on where the market might be headed.

Real estate professionals, including real estate agents and financial advisors, can offer invaluable guidance. An experienced real estate agent can provide a Comparative Market Analysis (CMA) to help you understand your home’s value in the current market. Financial advisors can help you evaluate the financial implications of selling now versus waiting.

Examining the current housing market trends and data provided by Realtor.com, it’s essential to evaluate whether it’s an opportune moment to sell a house or if waiting might be a strategic move. Let’s delve into the key findings to make an informed decision:

Current Market Trends

The past week’s housing trends offer insights into the dynamics at play. Mortgage rates, which had been steadily increasing for five weeks, finally stabilized but remained above 7%. This stability, however, did little to boost seller confidence, as high mortgage rates have dampened enthusiasm among sellers in recent years.

Buyers, on the other hand, are facing a competitive market characterized by higher down payments compared to previous years. This trend is likely driven by increased competition over limited inventory and buyers with more disposable income, either from recent home sales or higher earnings.

Furthermore, the Consumer Price Index (CPI) inflation data showed improvement, indicating progress in the economic landscape. This positive development can potentially influence mortgage rates in the near future, offering hope for both buyers and sellers.

Key Findings

The median listing price: It remained steady year-over-year for the second consecutive week. Despite this stability, the median listing price per square foot was 3.8% higher than the previous year, suggesting a shift in the types of homes available on the market.
New listings: There was a 6.6% increase compared to one year ago. While seller activity has been on the rise, the rate of growth slowed down, indicating a potential slowdown in new listings.
Active inventory: Homes listed for sale were 35.0% higher than the previous year, giving buyers more options. This abundance of inventory varies geographically, with the South experiencing the highest growth.
Days on the market: Homes spent one day more on the market compared to the previous year. Despite this slight increase, homes continue to sell relatively quickly, driven by competition among buyers.

Given the current market conditions, the decision to sell your house hinges on various factors, including your financial situation, housing needs, and long-term goals. While high mortgage rates may deter some sellers, improving economic indicators offer hope for a more favorable market environment in the future.

If you’re considering selling, it’s essential to weigh the pros and cons carefully. Selling now could mean facing less competition from other sellers, but waiting might allow you to capitalize on potentially lower mortgage rates and increased buyer demand.

Ultimately, the right timing depends on your individual circumstances and risk tolerance. Consulting with a real estate professional can provide valuable insights tailored to your specific situation, helping you make a well-informed decision.

Is Now a Good Time to Buy a House? Should You Wait in 2024?

Should I Buy a House Now or Wait Until 2025?

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

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

August 9, 2024 No Comments

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.

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

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