Selling your home is a big decision, so weighing the pros and cons before taking any steps makes sense. The COVID-19 pandemic has impacted the real estate market, and the ramifications are still being felt. There are a lot of factors to consider before selling your home, but here are five reasons why now may be the best time to sell.
How to Sell Your Home
You have options when it comes to selling your home. You can list the property with a real estate agent, sell it on your own, or sell your home quickly using a service like Four 19 Properties. Select the method that you feel comfortable with and best fits your needs.
You Have a Starter Home
A starter home is a smaller house usually favored by first-time buyers. The small size carries a lower price and less maintenance, making it more desirable to new buyers. Typically, homeowners upgrade to a larger home after living in a starter home for several years. Soaring rents and mandates to stay home caused more renters to transition to homeowners over the last two years. With 82.8 million owner-occupied households in the United States, it is apparent that homeownership is on the rise.
A starter home is always a desirable home to sell as new buyers are constantly entering the market. There is a steady demand for starter homes; however, do not think that means you should hold on to your larger home. Prior to the start of the pandemic, buyers were gravitating to tiny homes. After families spent time in cramped conditions with dining rooms converted to classroom or office space and family members and pets constantly interrupting Zoom calls, the desire for more space is in high demand. If you have a larger house with amenities like a home office or a large yard, now is a great time to sell. It may take longer to find the right buyer, but you can expect to sell your larger home.
Interest Rates Are Low
Selling your current house means you need to find a new place to call home. Now is a great time to sell, but it can also be an excellent time to buy due to low interest rates. Financing puts homeownership within reach for many buyers since paying for a home outright is not usually feasible. A mortgage loan is necessary, but the interest rate can drastically dictate the monthly payment amount.
Mortgage interest rates were trending under 4% before the start of the pandemic, and they have consistently remained low. Securing a low rate can save you thousands, possibly even tens of thousands, over the course of the loan. Refinancing is always an option that can save you money on a loan, but securing a great rate from the beginning is an even better deal.
You Need to Relocate
Sometimes moving is not a choice and you need to sell your home. Maybe you want to relocate to a new city, or it is necessary to move for a job, or perhaps you want to move back to your hometown so familiar faces can surround you. Whatever the reason, if you need to move out of the area, you have no choice but to sell your home.
New Home Construction is Down
Since 2006, new home construction in the United States has declined overall. The South and West have seen an uptick in new home construction, but fewer new homes are being built across the entire country. New home construction was trending downward, but a scarcity of lumber during the pandemic was followed by a drastic increase in pricing, further discouraging new home construction. Fewer new homes mean buyers have to consider existing homes, so there is more demand for your home.
Seller’s Market
Sellers control the negotiations in the current market, meaning you can likely sell your home for top dollar. You do not have to accept the first offer that comes in, and you can confidently make counter offers without worrying that your home will sit on the market. Including the closing period, most homes are selling within 55 to 70 days, so do not be afraid to wait for a satisfactory offer. In most circumstances, selling a home leads to buying a home, so if you make a tidy profit selling your house, you will likely reinvest that money into a new home.
Now Is the Time to Sell
A home is a significant investment, but it is more than an investment, and it is where you live and raise your family. Deciding to sell is not always easy, but selling your home can allow you to purchase a new home that will better serve your family or prove to be a wise financial move. Whatever you decide, the choice is yours, and as long as you make an informed decision, it will be the right decision.