Developing a plan and setting attainable goals are two of the biggest ingredients in the process of selling a home successfully. By understanding what steps you need to take, when you need to take them, and where you can look for help along the way, you'll put yourself in a great position to sell a home quickly while maximizing your return on investment.
This step-by-step guide to selling a house is designed to prepare you for the process and help you achieve your goals.
Step One – Find the Right Real Estate Agent
The first step on our list just might be the most important because finding the right real estate agent will make all the steps that follow so much easier to handle. Remember that you definitely don't have to settle for the first agent you meet unless that agent truly shows that they're the right person to sell your home. Ask around for referrals, interview agents, and find the right agent for your unique needs.
Step Two – Research the Market and Pick a Price
One of the first things that your agent can help you with is understanding your local real estate market, and picking a price that will help get your home sold. Your agent should offer a comparative market analysis (CMA), which will help you understand what other similar homes in your market are selling for, and set a price that attracts competitive offers.
Step Three – Clean, Clear Out Clutter, and Prepare Your Home for Sale
With a great agent on your side and a fair market price chosen for your home, you'll be ready to prepare your home for potential buyers. This is a great opportunity to start the process of moving out: clear clutter, store personal items, and make your home as attractive as possible for buyers. You'll want to clean every inch of your home, from the basement to the master bedroom. Curb appeal is a big deal, too, so make sure that your yard is looking its best.
Step Four – Market Your Home to the Masses
With your home ready for buyers to visit, it's time to start attracting attention and introducing buyers to what you have to offer. Your real estate agent can help you market your home through social media, online listings, and traditional marketing tools. You can also do your part by spreading the word and letting others know that your home is on the market.
Step Five – Prepare for Multiple Offers
By working with an experienced agent, picking the right price, and marketing your home effectively, you'll set yourself up to receive multiple offers on your home. Make sure that you understand exactly what you're looking for from an offer, so you can negotiate the deal that best matches your needs.
Step Six – Negotiate and Close the Deal
All of the work that you do up to this point leads up to the process of negotiating with the buyer and closing the deal. Work closely with your real estate agent to ensure that all of the key legal details are covered and that you're maximizing the value you receive in return for all of the hard work you've done to sell a home.
No matter where you are in the sales process, remember that there's plenty of help available, both from your real estate agent and from other homeowners you trust. Start by following our step-by-step guide, and you'll already be ahead of the game when you decide to sell a home.
According to data from the National Association of REALTORS®, most home sellers hire the first real estate agent they meet.
Now, that might not necessarily be a bad idea if you happen to meet a great agent right out of the gate, but selling your home is a big move, and it's important to choose your listing agent carefully.
To find the best agent for the job, you need to ask questions — and not just "how much will you get for the property?" and "what will the commission be?" Include these questions during the interview process:
Your goal should be to finds an agent with whom you are confident and comfortable with and who can sell your home quickly and at the right price.
Reach out to a local Montague Miller & Company real estate professional. Our agents are licensed REALTORS® with expertise and dedication to help guide you through the home selling process.
Before you engage in any real estate transaction, you need to know as much as you can about the home's value. There are two related but distinct processes that help people pin down the valuation of a property before they move forward: comparative market analysis and home appraisal.
Both of these will be performed at different steps in the sale process. Knowing the difference between the two can save you some valuable time.
CMA Versus Home Appraisal: Final Considerations
Both a comparative market analysis and home appraisal provide valuable insights that help you and your real estate agent move toward a successful sale. Assuming a property spends only a moderate amount of time on the market, each usually needs to be completed only once.
Sometimes, however, a lender might request a new appraisal even if the previous appraisal was only a short time ago. You might even get a CMA before you make a final decision about selling your home. Each situation is different.
An experienced real estate agent can help you by ensuring you're equipped with an accurate CMA. Plus, when the time comes to prepare for an appraisal, they can guide you on the most important steps to raise your home's value in your budget and timeline.
As with anything in real estate, the sooner you get started with selling your home, the smoother the process.
Reach out to a trusted Montague Miller & Co real estate professional to help you make your next move.
Last year, one factor drove the real estate market more than any other: rising mortgage rates.
In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation.1 And while some market sectors have been slow to respond, the housing market has reacted accordingly.
Both demand and price appreciation have tapered, as the primary challenge for homebuyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.
So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here's what several industry experts predict will happen to the U.S. housing market in the coming year.
MORTGAGE RATES WILL FLUCTUATE LESS
In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, "We've never seen rates double in so short a period."2
This year, economists forecast a less dramatic shift.
In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios:3
Realtor.com forecasts something similar to scenario #2 above: "Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year's end."4 The Mortgage Bankers Association, however, projects something closer to Evangelou's scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4.5
Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a "modest recession" this year.6 But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4.7
"From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession," said Fannie Mae Chief Economist Doug Duncan.6
What does it mean for you? Even the experts can't say for certain where mortgage rates are headed. Instead of trying to "time the market," focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buydowns—and keep in mind you can always refinance down the road. We'd be happy to refer you to a trusted mortgage professional who can outline your best options.
SALES VOLUME WILL FALL AND INVENTORY WILL RISE
It looks like the home-buying frenzy we experienced in recent years is behind us. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers.
Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.
Economists at Fannie Mae forecast that total home sales will fall by around 20% this year before rising again by nearly 15% in 2024.7 National Association of Realtors Chief Economist Lawrence Yun projects a less extreme dip of 7% in 2023 with a rebound of 10% next year.8
Realtor.com Chief Economist Danielle Hale foresees something in between. "The deceleration in home sales is likely to continue as high home prices and mortgage rates limit the pool of eligible home buyers. We anticipate that existing home sales will decline another 14.1% in 2023." She expects this drop in sales to lead to a nearly 23% increase in inventory levels this year, offering more choices for buyers who have struggled to find a home in the past.9
However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: "It's important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average."9
What does it mean for you? If you've been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today's buyers have more negotiating power than they've had in years. Contact us to find out about current and future listings that meet your criteria.
If you're hoping to sell, you may want to act fast; rising inventory levels will mean increased competition. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home's current market value. Reach out to schedule a free consultation.
HOME PRICES WILL REMAIN RELATIVELY STABLE
While some economists expect home prices to fall this year, many expect them to remain fairly stable. "For most parts of the country, home prices are holding steady since available inventory is extremely low," said Yun at a November conference.8
Nationally, Yun expects the average median home price to tick up by 1% in 2023, with some markets experiencing greater appreciation and others experiencing declines.8 Economists at Fannie Mae offer a similar projection, forecasting a slight decrease in their Home Price Index of about 1.5%, year-over-year.7
Other experts foresee a larger fluctuation. Hale expects U.S. home prices to rise by 5.4% this year, while Morgan Stanley is forecasting a 7% drop from the peak in June 2022.9,10
Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren't prevalent in our current market.10 Therefore, home values are expected to remain comparatively stable.
What does it mean for you? It can feel scary to buy a home when there's uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we're experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.
And if you're planning to sell this year, you'll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today's market.
RENT PRICES WILL CONTINUE TO CLIMB
Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive "above-average" rent price increases in much of the country.11 The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year.12
According to Hale, "U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends."9
However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there's some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely.10
What does it mean for you? Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options.
And if you've ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started.
WE'RE HERE TO GUIDE YOU
While national real estate forecasts can provide a "big picture" outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.
If you're considering buying or selling a home in 2023, contact us now to schedule a free consultation. We'll work with you to develop an action plan to meet your real estate goals this year.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
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From summer vacations to winter holidays, it seems each season offers the perfect excuse to put off our to-do list. But be careful, homeowners: neglecting your home's maintenance could put your personal safety—and one of your largest financial investments—at serious risk.
In no time at all, small problems can lead to extensive and expensive repairs. And even if you avoid a catastrophe, those minor issues can still have a big impact. Properties that are not well maintained can lose 10 percent (or more) of their appraised value.1The good news is, by dedicating a few hours each season to properly maintaining your home, you can ensure a safe living environment for you and your family ... and actually increase the value of your home by one percent annually!1 You just need to know where and how to spend your time.
Use the following checklist as a guide to maintaining your home and lawn throughout the year. It's applicable for all climates, so please share it with friends and family members who you think could benefit, no matter where their home is located.
Winter
While it can be tempting to ignore home maintenance issues in the winter, snow and freezing temperatures can do major damage if left untreated. Follow these steps to ensure your house survives the winter months.
Inside
Outside
Spring
After a long, cold winter, many of us look forward to a fresh start in the spring. Wash away the winter grime, open the windows, and prepare your home for warmer weather and backyard barbecues.
Inside
Outside
Summer
Summer is generally the time to relax and enjoy your home, but a little time devoted to maintenance will help ensure it looks great and runs efficiently throughout the season.
Inside
Outside
Fall
Fall ushers in another busy season of home maintenance as you prepare your home for the winter weather ahead.
Inside
Outside
While this checklist should not be considered a complete list of your home's maintenance needs, it can serve as a general seasonal guide. Systems, structures and fixtures will need to be repaired and replaced from time-to-time, as well. The good news is, the investment you make in maintaining your home now will pay off dividends over time.
Keep a record of all your maintenance, repairs and upgrades for future reference, along with receipts. Not only will it help jog your memory, it can make a big impact on buyers when it comes time to sell your home … and potentially result in a higher selling price.
Are you looking for help with home maintenance or repairs? We have an extensive network of trusted contractors and service providers and are happy to provide referrals! Call or email us, and we can connect you with one of our preferred vendors.
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You don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.
For example, according to the U.S. Environmental Protection Agency (EPA), you can save a couple of hundred dollars a year just by sealing your home and boosting its insulation.1 Other small fixes—such as swapping old light bulbs for LEDs and plugging electronics into a powerstrip—can boost your yearly savings enough to pay off some of your holiday budgets.
And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stalwarts like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.2
You won't be the only one bargain-hunting your way to a more financially-stable New Year. Multiple surveys have found that inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.3
Here are some strategies you can use to boost your holiday budget by trimming household expenses:
If you're finding it harder than it used to be to serve your family dinner on a budget, you're not alone. With the U.S. food-at-home index (a measure of grocery price inflation) at a 43-year high, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.4
That's made pulling off holiday gatherings especially stressful lately. But don't despair: Even with inflation, retailers are still giving motivated shoppers plenty of opportunities to whittle down their bills.
The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts. For example, try buying non-perishable items in bulk, especially when they're on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. As you tap into your inner bargain hunter, you could be surprised by what you save when you're more mindful of your selections.
And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save both time and money by scouting for deals online, digitally clipping coupons, and earning cash back through special apps and browsers. For example, coupon aggregation sites, like Coupons.com, and shopping apps—such as Checkout 51 and Ibotta—make it easy to score discounts and cashback on a variety of purchases, including groceries.
Also, check to see if your neighborhood grocer posts their weekly flyers online. If you're hosting a holiday party, the markdowns you find can help you narrow your food and recipe choices, based on what's currently on sale.
2. Prep Your Home for Holiday Guests With Pre-Owned Finds
You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand.
Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. A recent study found that the "re-commerce" market grew almost 15% last year, which was twice the pace of general retail.5 Plus, buying used isn't just a great way to save money, it also helps the environment by keeping reusable items out of landfills.
Fortunately, it's become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook, Craigslist, and OfferUp. Or you can take advantage of neighborhood freecycles and "Buy Nothing" groups. And a number of thrift shops now have e-commerce sites, including major chains, like Goodwill.
If you're handy with a paintbrush or have some basic carpentry skills, you can also modernize some of your existing furniture by upcycling it yourself. Or, if you enjoy crafting, search through your own recycling or sewing bin for raw materials to make one-of-a-kind decorations.
Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. "A house doesn't have to be perfect or completely done for it to feel festive or inviting," designer Justina Blakeney noted in an interview with the Washington Post. "These are family and friends, and they are not judging you."6
3. Forgo Major Renovations in Favor of DIY Home Improvements
Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget –—and unnecessary stress to your holiday.
Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself.
One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colorful. These are festive enough for the holidays, but also versatile enough to use year-round.
Or, if you'd rather curl up by an indoor fire, channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair.
Just be sure to stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home's resale value.
4. Invest in Home Maintenance Projects That Cut Your Utility Bills
You can save money by completing basic home maintenance tasks, such as swapping your furnace filter and updating your lightbulbs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient.
According to the EPA, 9 out of 10 homes in the U.S. are under-insulated, which wastes energy and money.7 Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, the EPA offers guides on how to:
The savings you get from these projects can really add up. The EPA estimates that sealing and insulating your ducts can make your HVAC system up to 20% more efficient.8 And thanks to new provisions from the Inflation Reduction Act, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax credit.9 Be sure to check with us about any local rebates and incentives that may be available, too, before getting started on a project.
5. Use Expense Tracking to Boost Your Holiday Budget
To avoid overextending yourself during the holidays (or anytime), one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.
For example, here's a sample budget worksheet. Start by adding in your expenses: Under the "Typical" column, you can list your standard expenses, and under the "Adjusted" column, list any areas where you could cut back on spending.
Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.
HOUSEHOLD BUDGET WORKSHEET |
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Typical |
Adjusted |
Difference (+/-) |
HOUSING |
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Mortgage/taxes/insurance or Rent |
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Utilities (electricity, water, gas, trash) |
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Phone, internet, cable |
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Home maintenance and repairs |
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FOOD |
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Groceries |
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Restaurants |
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TRANSPORTATION |
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Car payment/insurance |
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Gas, maintenance, repairs |
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OTHER |
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Health insurance |
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Clothing and personal care |
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Childcare |
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Entertainment |
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Charitable contributions |
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Savings, retirement, college fund |
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INCOME |
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Salary/wages |
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Bonus, tips, other |
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MONTHLY TOTALS |
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Total Adjusted Income |
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Total Adjusted Expenses |
- |
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EXTRA SAVINGS FOR YOUR HOLIDAY BUDGET |
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Feel free to use this worksheet as a template that you can personalize to your needs.
WE'RE HERE TO HELP
We would love to help you meet your financial goals now and in the year ahead. Whether you want to find lower-cost alternatives for home renovations, maintenance, or services, we are happy to provide our insights and referrals.
And if you're saving up to buy a new home, we can help with that, too. This is the perfect time to score a great deal because only the most motivated homebuyers and sellers are active in the market right now. So reach out to schedule a free consultation. We can fill you in on some of the exciting programs and incentives we're seeing that help make homeownership more affordable.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
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Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled. 1 Consequently, home sellers who enter the market today may need to reset their expectations.
The reality is, it's no longer enough to stick a "for sale" sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today's market, you'll need an effective game plan and a skilled team of professionals to implement it.
Fortunately, we've developed a listing strategy that combines our proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well.
Here are some crucial steps you can take to set yourself up for success as a home seller in this market:
1. Make Strategic Repairs and Improvements
When you sell something, it's important to consider what your customer wants to buy. And according to the National Association of Realtors, only 6% of today's buyers report that they are looking for a DIY fixer-upper.2 The vast majority want a move-in-ready home, which means that any outstanding repairs or dated features can be a major turn-off.
Before your home goes on the market, we'll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, we may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.
Beyond repairs, we'll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. However, it's important to choose the right colors. One study found that painting your bathroom light blue could lead to a 1.6% increase in the offer price!3 Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% return on investment.4\
2. Declutter and Depersonalize
When buyers look at a home for sale, they're trying to envision themselves living there. That's hard to do if it's chock-full of the current owner's family photos, children's artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated.
Decluttering before you put your home up for sale will help you in the long run—after all, you'll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you'll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.
If you feel overwhelmed by this process, we'd be happy to make recommendations or refer you to a local service provider who can help.
3. Stage Your Home for Success
Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.
The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!5
Some sellers hire a professional stager, who may bring in furniture and decor to increase the home's appeal. Others choose to stage their homes themselves. We can help advise you on which route to choose and how much to invest in the process.
It's also important to consider what buyers in your neighborhood are likely to be looking for in a home. We can help guide your staging choices with our local market insights. For example, in neighborhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.
4. Prep for Each Showing
Most of us don't live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it's important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!
Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference.
It's also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.
Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!
5. Price Your Home Correctly From the Start
In the past few years, you may have seen homes in your neighborhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it's best to be realistic from the start. Even in a hot market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.6
Of course, you also don't want to set your price too low and lose out on potential profit. That's why it's essential to work with real estate agents (like us!) who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality.
Fortunately, if you've owned your home for several years, chances are good that it's worth much more today than you paid for it. That means you stand to walk away with a handsome profit. In fact, recent reports show that homeowner equity is at an all-time high.7
6. Avoid Acting on Emotion
The past few years of over-asking-price offers with few contingencies have set certain expectations for many sellers. It's only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth.
However, it's important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results.
Remember: You can always counter a low offer. The same goes for repair requests and contingencies—everything is negotiable. However, it's important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that we'll be by your side every step of the way to help you navigate the process and negotiate a great deal.
7. Work With a Local Market Expert
The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That's why working with a professional agent who understands your neighborhood's dynamics is essential. Through our experience, we've gathered insights that can help us position your home for success in this market. Plus, we have the resources to connect with qualified buyers searching for a home like yours.
Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. We have access to extensive data on recent sales in your neighborhood, which we will use to price and promote your property. That's one reason why homes sold by agents draw much higher prices than those sold by their owners alone. While for-sale-by-owner homes went for a median price of $260,000 in 2020, the median for homes sold by agents was $318,000.8 That's a difference of $58,000—and money you don't want to leave on the table.
YOUR AGENT AND ADVOCATE
Selling a home in a fast-changing market can be stressful. You're likely to hear conflicting advice and opinions from people in your life, and decisions like what color to paint your front door or how much to list your home for can be overwhelming.
That's where we come in. The market may be adjusting, but it's still highly advantageous for sellers—and we're here to help you make the most of it. We're listing experts in our area, and we know what steps you need to take for a smooth, profitable transaction.
If you're considering buying or selling a home, we invite you to reach out to schedule a free consultation. We're happy to talk through your specific situation and goals and help you identify your next steps.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
According to Redfin, a national real estate brokerage, there's a pretty good chance you can find a condo or co-op that'll cost you less to own per month than it would to rent one!
Landlords have every right to get as much for their rental as possible. If there are renters who are ready, willing, and able to pay them what they're getting per month, then the market has spoken, and that is ultimately what defines and creates the market value.
The good news is, you might be able to buy your own home and pay less per month than you do in rent!
People often presume that buying a home will cost them more than renting. It certainly can, but it doesn't always. A lot depends upon:
It's not a no-brainer. You have to look into those things. But most likely you won't be able to buy just any house on the market and have it cost you less per month than something you could rent in the area. That's not how it works. For instance, you're probably not going to be able to buy a 4-bedroom, 3-bath colonial on a cul de sac for less than it costs you to rent a 2-bedroom, 1-bath apartment. But, you might be able to find a 2 bedroom, 1 bath condo or co-op that'll cost you less per month than that apartment!
In fact, according to recent monthly rental market data from Redfin, there's a pretty good chance you can find a condo or co-op that'll cost you less to own per month than it would to rent one! While other types of property cost more per month to own than to rent, condos and co-ops are about $200 cheaper per month to own on average on a national level. And that's not just right now; it has been cheaper to own a condo — by even more than that at times — going back to at least April of 2019.
Again, real estate values and markets function on a local level, so you can't entirely bank on national statistics. But they're at least a good indication that there are possibilities worth looking into if your rent is creeping higher, and you'd like to have some control over how much you're shelling out every month for a place to live! In the least, it's worth asking your local real estate agent to help you figure out if there are condos (or perhaps even another type of home) for you to buy, that'll cost you less per month than your current rent.
The Takeaway:
If you're feeling like rent prices are skyrocketing, you're not imagining things. While they're driven by supply and demand in the market, some landlords are also using software that helps them not only determine how much they can get for rent, but also encourages them to avoid bargaining with renters and to be firm on higher monthly rental rates.
The good news is that you might be able to buy your own condo or co-op, and pay less per month than you would in rent, based upon national rental market data. Reach out to your local real estate agent for a more accurate assessment of the options and possibilities in your area. With offices in Charlottesville, Madison, Amherst, Orange & Culpeper, our Montague Miller & Co real estate professionals can help you with your home search!
Resources: Redfin