1): You Can Time the Market (aka it’s not a good time to sell)
The Facts: There is a documented housing shortage in the United States – and particularly in some areas. The National Association of Realtors actually has a “Housing Shortage Tracker” that compares new housing permits to new jobs created. Accepted research shows that housing construction has not kept up with the increase in households in the US and that the US is about 4 million rooftops short.
However, housing prices aren’t merely a byproduct of available inventory. They also depend on broader economic factors like mortgage interest rates, loan & credit availability, income growth and consumer confidence in the future. The best economists, statisticians and real estate gurus were all anticipating that a real estate bubble was about to burst as we entered the COVID-19 pandemic, yet housing prices exploded.
If you have a crystal ball and can accurately predict the future in real estate – you should be buying and selling properties every day!
Historically, housing prices have risen over time. Each year, in any survey, real estate is chosen as the most popular investment vehicle.
Our Advice? Even in today’s crazy market, it’s a great time to sell! Inventory remains low, Prices remain high(er), and there remains demand in many areas where jobs are being created. Rents are increasing at an incredible pace, so first-time home buyers and investors who buy, hold & rent are still a big part of the marketplace.
2): If I Redo my Kitchen or Bathroom, I’ll get that money back plus more when I Sell.
The Facts: Getting your home updated, cleaned and ready to show…….. avoiding those hassles are reasons that people choose to get iFinder Offers first! But sometimes, going on the market and on the Multiple Listing Service makes sense. So, when that’s the plan, should you redo your kitchen or bath?
Our answer is a big MAYBE. Our experience says that it will certainly help you sell FASTER, and it may help you sell at a bit higher price…however the actual Return on Investment is not what you might expect. Realize that costs are escalating and the process can be slower these days, so you need to account for that. You might do some research like the 2022 Remodeling Magazine’s “Cost vs. Value Report” which indicates mid-range kitchen remodels cost about $66,000, and homeowners can expect to recover about 60 to 80% of that cost at resale.
So, be very careful before you start with those big home improvement projects! And remember that “As-Is” iFinder Offers are a great place to begin.
3): I should overprice to leave “wiggle” room for negotiating.
The Facts: Overpricing is usually a very costly mistake — accumulating days on the market, a listing goes stale and buyers wonder what’s wrong with it. Overpricing frequently means that property closes much lower than if it had been listed at a realistic price. Buyers today have more data available at their fingertips than ever before and are very price sensitive. If you are choosing to go on the market, on the Multiple Listing Service in your area – then you want to get attention, have showings and be recognized as a decent deal. Being perceived as priced right and a good value will help you sell!
Remember, the market determines the price. Always.