Four tips for selling smart, part one
April 16, 2022
Are you one of the many homeowners trying to decide if this is a smart time to sell a property you own? If so, you are not alone. Many homeowners across the country are having the same debate over whether this is the right time to cash in and buy something else, or just cash in. Here are four things you need to consider to sell smart!... (hint: There will be 4 more in my next article).
What do you qualify for?
Honestly, the MOST important step one. Meet with a Mortgage Professional and find out what you potentially qualify for in an area you want to re-buy. Often sellers meet with a Real Estate Agent first to see how much their home is worth and how much they might make on a sale. Many Mortgage Professionals can use some estimators as well just to review your qualifications and create a purchase plan. If you like it, then the next best step is to connect with an agent and see how those plans match up with what they see in the comparable home sales. If you don't like it, then perhaps you consider a refinance to remodel the home you are already in, and love it longer.
Where would you go?
You would be surprised how many anxious and excited homeowners sold homes recently without even thinking where they may go first. This is also the No. 1 reason people are not selling... they don't see anything else to buy. Have a plan whether it be your RV, a family members home, a short term rental like an AirBNB or a strategic vacation. Even if you are in escrow on another home, what if it doesn't close in time for your sale? Delays can happen, so have a plan.
Why do you want to sell?
Are you planning to move soon anyway? Are you concerned your dream home will get too expensive if you wait? Does the house need too much work? Figure out what is driving the decision and discuss that with your Mortgage Professional and Realtor to ensure that what you need can be solved by selling.
What is the market expected to do?
We may not have a crystal ball, but there are many market indicators that help us to understand what is likely to be expected. Most research points to very strong appreciation in 2022; it is not expected to be as high as 2021. In addition, with rising interest rates, some buyers will not qualify for as much of a purchase price as they did before. This means although we still expect a strong market and there are still more buyers than sellers, it is expected to calm down a little. With this slight shift, your peak fast equity gains likely already exist, and what you will have going forward after 2022 is a more normal annual appreciation. The next several years are still expected to be a Seller's Market with the shortage of homes still driving home value appreciation, but at a calmer pace in much of the country.
If you are considering whether or not to sell, and would like to discuss any of this - as well as the next four things to consider - please reach out and let's plan a time to discuss what is best for you!
Alysha Boles – Mortgage Strategy Advisor for the Navigate Lending Team is a licensed loan officer serving California and Texas personally and in multiple states nationwide as a team. She can be reached at (661) 858-7214, or inquire online http://www.advisoralysha.com.