When it comes to navigating the property market (any property market), it is vital to remember that nothing stands still for long.Moreover, while there may be a few hard and fast rules for either buying or selling property, the vast majority of advice will be contingent on the state of the current market.
So what is the current market? CityHome Collective, property experts out of Salt Lake City, note that the U.S. is currently experiencing a red-hot seller’s market, the result of historically high demand and equally historically low inventory. This means that sellers can expect a bit of competition for their properties, as well as over-the-asking price and hard cash offers. In other words, it is a good time to be a seller.
But will this last? Most realtors would conclude thatbecause rising interest and mortgage rates should soon taper off, it seems likely that the seller’s market will not last forever. Furthermore, because there is now a strong economic incentive to build new homes (the buyers are there and eager) we can expect the low inventory/high demand situation to come to an end too. Nevertheless, none of this is imminent and soif you’re looking to sell a home, the best place to start is to understand the market as it stands and can be expected to stand for some time.
The Importance of a Realtor
This is what it means to be a canny seller and to have the situation work in your favor. Certainly, there has never been an easier time to do just this, but we should stress thateven though certain definite advice and tips can be given, there is no substitute for a quality real estate brokerage. The combination of expertise and local market knowledge allows them to offer tailored advice. You cannot provide that yourself, but you can educate yourself on a what it means to be a seller in this market.
The Most Important Things to Know
What then are the most important things to know? Here follows some of the constants of the market as it currently stands. This is how you know what you are getting into.
Low Demand vs High Supply is Not a Recent Phenomenon
This single phenomenon, which is perhaps the biggest driving factor of the current seller’s market, is certainly not a flash in the pan that can be expected to end tomorrow. Instead, it is the result of several years of more households being formed than houses built. The data in fact reports says that over the last decade, 12.3 million households were formed, and seven million homes were built. This is not something that isgoing to change overnight.
Home Improvements are Expensive
One of the most important things to do ahead of a sale is to improve your homeas best you canin order to add value. This can be tricky as supply chain disruptions (exacerbated by Covid) have forced construction companies to charge extra. Seeing as you should always ensure that you do not end up spending more on a home improvement than the value it adds, you will need to be careful here.
Interest Rates are Set to Rise
Many economistshave by now (at the time of this writing) predicted that the Federal Reserve will raise interest rates soon in order to combat inflation. This is something to keep in mind when accepting or declining mortgage offers.
Such are the most important things to know when you think about selling your home. However, remember that a professional realtor will be able to take this expertise much further.