Buying a home isn’t always easy, but you can do things to help the process along. These tips may include making your property more appealing to buyers and preparing for showings.
Mortgage rates remain high, housing supply is low, but the market is improving. Here are five tips to remember if you’re considering selling your home.
Location
The real estate market is always local, and the supply of homes for sale varies widely by community. In some locations, strong demand has driven prices higher and reduced the number of available properties. The latter is especially true in high-growth cities, where increased demand for property from professionals translates into tight inventory. In other communities, a shortage of available properties has caused would-be sellers to be more cautious about listing their homes, and that’s reflected in fewer homes hitting the market during a typical year.
Many federal agencies sell surplus or seized property through auction or offer, including real estate and federal lands. For example, Fannie Mae lists single-family homes on its HomePath website, and the U.S. Department of Housing and Urban Development sells HUD homes nationwide. Those are just two federal properties for sale; many other government agencies offer similar listings.
Condition
Most buyers want to purchase a house in good condition, and its condition can impact how long it remains for sale. For example, if the home is a total dump that needs a major renovation, many potential buyers will pass on it and move on to other homes. On the other hand, if the house is in excellent condition and has a lot of curb appeal, it will likely sell quickly. A home’s condition is important because most loan types require that the property meet minimum livability standards determined during an appraisal performed by a licensed appraiser.
The term “as-is” describes properties in disrepair, but some sellers may use it for other reasons, such as not wanting to do any repairs before closing. In these cases, the seller must still provide a Seller’s Disclosure and comply with all other state and federal requirements for real estate sales.
Size
The size of a home plays an important role in many people’s lives. It can dictate where they live, how much they spend on their mortgage each month, and what type of lifestyle they have. It is also a factor when looking for the right home to buy. For example, if you have children, you may want to consider a house with enough space for them to grow.
However, you may not need a large home if you don’t have any kids. A real estate agent can help you determine the right size for your family and budget.
The size of homes varies by state and city, as well. Utah, for instance, has the largest median home size in the country at 2,800 square feet. In contrast, Wyoming has the smallest average home size at 1,164 square feet. Many of these differences are due to the age of the housing stock in a particular area. Newer homes tend to be larger than older ones. However, some states have the same average home size regardless of age.
Features
House sellers need to understand what features will help them sell their property. They need to highlight the right features in their listing so that they can get the most value out of it.
For example, a well-kept garden will likely increase the chances of a sale. Other features that can be added to a sale include bi-fold doors, a patio area, and decking. Professional photographs and a clear floor plan will also attract potential buyers.
Post-pandemic home buyers are more willing to pay extra for fun features. Putting green and saltwater pools are both good examples of this trend.
Finding homes for sale on sites such as Patchen and Nextdoor is also possible. These websites allow you to browse listings in various formats, including photos, lists, and maps, and access local information such as crime reports, school reviews, price trends, and neighborhood insights. You can use an app such as Zillow to quickly compare properties to save time.
Price
The price a home is listed for can influence its value and how quickly it sells. Determining a good list price involves looking at various important factors, including the final sale prices of comparable homes in your area and market conditions.
A home’s actual selling price may differ from its initial listing price due to negotiations between the seller and buyer. The final price can also vary by several thousand — or even tens of thousands — of dollars, depending on the market and other circumstances, such as bidding wars.
The average home price has spiked since the COVID-19 pandemic due to low supply and increasing demand. It may be a while before these prices level out. If you’re considering buying a home shortly, pay attention to these price trends and talk with your real estate agent about how they could impact your purchasing process and homeowners insurance rates.
