March 21, 2019 by
If you spend any amount of time contemplating whether or not to sell your house, chances are you have at least one foot (metaphorically) out the door. What’s keeping you from taking the next step? Whether market uncertainty or the thought of looming home repairs are preventing you from listing your house “For Sale,” there are a number of reasons to consider pushing forward.
Despite the unpredictable early spring weather, the real estate market in the greater St. Charles area is hitting extremely hot temperatures. With many homes selling in less than 10 days, conditions are favoring the homeowner, because the supply of available homes is low and demand is high.
Take a look at the top reasons homeowners who are contemplating whether or not to sell their home should sell now.
Sellers Benefit from Low Supply and High Demand
Not everyone should sell their home on the fly just because the market is hot. Your family should carefully evaluate your goals and finances to see if it makes sense. An experienced realtor can help evaluate your options during this process. If your home has potential to turn a profit and help accomplish your financial goals, the timing may be just right!
A Seller’s Market can benefit homeowners in a number of important ways, including:
1. Buyers want to get ahead of market uncertainty.
After the recession of the early 2000s, the housing market has enjoyed a lengthy period of economic growth. But all good things must come to an end, and nearly 60% of private sector economists are forecasting a recession in 2020.
2. Sellers with high equity can turn a sizeable profit.
Homeowners who purchased in the years following the economy’s recovery, circa 2009, may have interest rates more than a full percentage point below today’s going rate of ~4.4%. This could translate into high equity in the home. Calculate your equity with the below formula:
Current Market Value of Home – Mortgage Balance = Equity (Potential Profit)
3. Unique homes and fixer-uppers fare better.
That custom build with a Harley Davidson leather-topped bar requires a pretty specific buyer. When there are lots of homes for sale in the area, buyers may write off the ones that are not well-suited to their lifestyle, or require several updates and repairs. When the supply is low, the reverse is usually true. As they say, “beggars can’t be choosers.”
4. Multiple offers can drive up a sale price – and even cover closing costs.
In a Seller’s Market, it is normal for buyers to be out-bid on multiple properties. Driven by the desire to be Under Contract on a home they like, buyers may wage a bidding war with their competitors – and even offer to cover closing costs to sweeten the deal.
5. Hot markets hit even hotter temperatures.
Traditionally, spring and summer are the best time of year to sell a home. And according to the Charles County Association of Realtors, the median days on the market in 2018 shrank considerably in those hotter months.
- February 2018 – 24 days on the market
- March 2018 – 18 days
- April 2018 – 15 days
- May 2018 – 11 days
- June 2018 – 10 days
6. Houses sell more quickly, and with less hassle.
Homeowners feel pressured to keep their house spotless while it is on the market. When it is time for a showing, they have to vacate – and sometimes on short notice. The faster the showing process is over, the better!
7. Buyers in a competitive market may not have as many contingencies.
In an effort to make their offer more compelling, and particularly in a multiple-offer scenario, buyers may attach fewer contingencies, such as:
- Inspection Contingency – The buyer may or may not require a home inspection, or will require the seller to make fewer cosmetic updates related to the inspection report.
- Appraisal Contingency – The buyer is willing to pay the difference if the house appraises below their offer price.
- Financing Contingency – The buyer’s offer does not depend on mortgage approval.
- Sale and Settlement Contingency – The buyer’s offer does not rely on selling their current home.
8. Houses can be listed (and sell!) without an ultra-glam makeover.
This is not to say that you should list your house without putting in any kind of elbow grease. Above all else, your home should be clean! But if your ’90s-era kitchen or ‘70s-era light fixtures have not been updated, you might not need to go the extra mile.
9. Lots of millennials are buying right now.
Millennials are known to be financially-savvy, and the data is backing them up. By the end of 2018, millennials made up nearly half of all new mortgages, at 45%. Now is the time to appreciate their buying power.
10. Eliminate uncertainty when it’s time to shop for YOUR next house.
Remember that Sale and Settlement Contingency we mentioned? Buying a home while you still own one could create a double-mortgage scenario – and that quickly becomes a ticking time bomb. Save yourself the stress (and money!) by selling your home while the market is hot. This is a big item to check off the list.
Sell Your Home with Meyer Real Estate
Partnering with an experienced realtor will help ensure that the process of selling your home is as smooth as possible. Meyer Real Estate is celebrating 60 years in St. Charles in 2019, so you can be sure that no one knows the local market better than our team of real estate agents. For buyers who are searching for their dream home in a competitive market, our agents will guide you through the process of making a competitive offer without sacrificing your wish list.