Real Estate Now: Update and Tips
Should you sell in 2020? There is much we don’t know about what the future will bring, but there are many reasons people need to move: health, finances, family issues, downsizing, transitioning, getting out from under high rents. A stable house payment and low interest rates are attractive to many.
People are still buying houses, with some listings up for only two days and sold with multiple offers. According to a NYT article, Buying a Home During a Pandemic, “The coronavirus is scary. But those willing to enter the housing market have the benefit of low rates — and the wisdom of those who bought during the last crisis.” Full article at www.nytimes.com/2020/03/13/business/buying-a-home-coronavirus.html.
Pandemic guidelines are changing daily. Here are a few important real estate issues, outside of the pandemic, that come up often. Tips that protect and enhance profit when selling a home.
It is a mistake to hire a Realtor because s/he will price your house higher than other comparative markets, or he offers the lowest commission. There are consequences to this gamble. Today’s buyers are tech-savvy and informed. They will avoid an over-priced home. A buyer’s agent will review how long a house has been on the market. If it has sat there longer than similar properties, that is a red flag. You may get low-ball offers from those who think you are desperate to sell. Pricing a home correctly from the beginning is important.
First impressions matter. No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door based on the outside. In my 30+ years of experience, if the owners haven’t taken care of the exterior, the interior is likely to be in the same shape or worse.
Make people feel welcome and safe as they approach the house. Unclutter. Spruce up the exterior with inexpensive shrubs and flowers, and paint goes a very long way.
Don’t go overboard with upgrades. Often, a major improvement isn’t necessary. Before you invest, have a realtor research comparable homes in your area and compare what they offer. Today’s market is more forgiving. There is a shortage of inventory and interest rates are low. Check out this chart https://www.remodeling.hw.net/cost-vs-value/2019/ providing ROI for remodeling projects, and consult an expert.
Why give the cash that belongs to you away? In today’s market, there's no need to sell to a fast cash buyer for an average of 65% of your home’s value. They will turn around and resell your home to a conventional buyer for a higher price taking the cash profit that you gave away in the process. No open houses are needed, they rarely sell the house being open. Besides, what’s more stressful, having 35% less in your pocket, or earning more with a professional committed to handling the sale of your home?
Your home can be sold “as is” no matter what the condition. People can even get cash out of their home if it is in foreclosure, and there are other situations where a home can easily be sold “as is.” Know that you have positive options no matter what your situation.
Terry Eggan, The Hard-Working Nice Guy, Realtor®, Bridge Realty
EPPIA is a networking group whose members are committed to the welfare of seniors in our community. EPPIA meets six times a year to exchange information and problem solve in the field of aging. For more information on EPPIA please visit our website at www.edenprairieaging.org.