There are signs that will show prospective sellers whether they should upgrade and sell their home. A good seller will be educated and informed regarding these valuable clues, which will enable the seller to take advantage of different scenarios regarding their property.
1. Performance of the real estate markets
One good sign is how the real estate market is going. Different municipalities have different markets. For instance, a three bedroom 2 bath home will sell for a different price in one region versus another, which is related to the law of supply and demand. Other factors include property taxes.
They may be higher in one area of the municipality than another. Did you know that in regions such as Long Island, NY homeowners pay as much as $10,000 in taxes and more? That is staggering! Measures a Realtor undertakes to sell their listings also affect the market because price plays a role as to the time it will take to sell a home, all things being equal.
2. What lenders are willing to offer
Another sign is interest and annual percentage rates? In a good real estate market, lenders are willing to offer low interest rates. In contrast, lenders will be more restrictive when the market is not so healthy and offer high interest rates.
It is also wise not to consider the number given by a lender the actual purchase price. Money performs differently over time in a good market versus a bad market. That’s why it’s important to determine how much home will a specific amount of money will buy in relation to the Annual Percentage Rate (APR).
3. The economy
The economy is another important sign. Is there a balance between the rate of imports and exports, which relate to a country’s Gross Domestic Product (GDP)? A recent settlement in the U.S. government shutdown, which lasted 16 days, related to the ability to pay its debts.
There is a lack of consumer confidence in the economic performance; how a country borrows money and pays it back along with the aforementioned GDP is important.
4. Time lived in a home
Length of time in a house is also a good sign. It is said that, all things being fair, that a house will be able to recoup the initial costs of purchasing such as closing costs, the Realtor’s fee, and many other costs, in about 5 years.
5. Much needed upgrades
Most important are the needed upgrades. To make a house more appealing and increase the likelihood of selling, changes may be necessary. A fresh coat of paint, cabinet remodeling, new storm-resistant windows, or even a pool will all increase the value of a home along with a competitive price.
Homes with upgrades and an attainable price will prove to be winners for both the seller and the buyer. As this is currently, a buyers’ market a seller has the competitive edge.
A real estate professional will prove most helpful in this endeavor and help a seller make the correct decisions when selling the home; it is a worthwhile investment going forward.