Your house will sell in this market, for fair value. The question is not if, but when and for how much? The faster you want your house to sell, the lower you will have to make the price. Why? Because right now it’s not a buyers market, or a seller’s market. Right now both buyers and sellers feel kind of stuck because of the high interest rates. The increased rates have taken a monthly mortgage payment and increased it by hundreds of dollars or more, making it literally unaffordable for the average income household to buy a new home.
So, how can that make it a buyers market? However, if the buyers literally are struggling to afford the property, how can that be a sellers market either? This is uncharted territory and it’s going to take some time to adjust for everyone. That may not be an option right now for you. You may need to sell by the end of the year, if not sooner and because of that you need to work with a realtor who can make this happen for you.
Have You Lost Value?
The first thing you want to ask a realtor is about the value of your property. What does it value out at, what should the initial asking price be and do you think you can get full value? The answers to that are going to be impacted by a variety of things. Yes, the market is slower right now but you may be in an area of town or the country where demand is high and you can get even more than you expect. This is also why working with local realtors is always a good way to go.
The majority of areas have lost some value over the last two years. However, this possible lost value is more of a dip from all-time highs and reflects a more accurate property valuation. If your property was worth 500k two years ago it may be worth 450k now, but it certainly is much more valuable than it was five to ten years ago. That’s how you have to look at it if you are trying to determine if you can get enough to sell.
Will There Be Interested Buyers?
There will absolutely be people interested in buying your property. Real estate investors and entrepreneurs scour the web for places that are available, trying to find the best possible deals. Because foreclosures are so rare right now, buyers have to look at nearly every newly listed property to see what it offers them and their specific goals for a new property.
Some may look to flip it, in that case they would need something that needs a lot of work. Some would want to move in or rent it out immediately and start getting some income from it. So, which can your property accommodate? Because there are investors who are looking for inventory and they will work with you.
Can I Get Full Asking Price?
Yes, you are not out of the range yet of getting full asking price. However, this is where again you need to work with your realtor to determine what is a fair asking price. If your property needs work but is valued at 500k, it may be tough to get that, especially from someone who cannot afford to cover both the loan and the repairs. You may have to make improvements on the property yourself if you want to get that full price.
Upgrading the roof, windows, kitchen, bathrooms and air conditioning are some of the best ways to not only maintain the value of the home, but increase it. If you are not in need of a quick sale of your property, investing some time and money into it can make a huge difference when you do finally list.
How Long Will It Take To Sell?
This is something your realtor can help you determine based on the condition of the home and also what the local market is doing. This again is why you want to work with a local realtor. They can tell you if you should expect to see a real offer within a month or if it may take longer and why. This is the guidance you need to determine if to sell, when and how much to ask for.
