Sometimes it pays to go against the crowd. While the real estate market is definitely at a peak during the spring and summer, going against this trend and listing your home in the fall can have some great benefits. Now is a great time to sell a home. Here are three reasons why:
1. Buyers are more serious. Many have just been transferred here for work. Their new jobs are starting and they need to find a home. They aren’t going to be out looking for a month at a time. They’re going to be serious.
2. Some buyers have been looking all summer and still haven’t found anything. Your house might be the one that they are looking for, so don’t hesitate to get it listed!
The fall is a great time to make a move up.
3. There is a lot less competition in the fall. It's no secret that most homes are listed in the spring and summer. However, homes that are not sold by the end of the summer are often delisted or are turned into rental properties. Otherwise, they start to draw less interest because of the time they have spent on the market. If you list in the fall, you have the benefit of standing out, as well as facing less competition than during the "hotter" seasons. This opens the door for you to sell your home to these motivated fall buyers.
In addition, we’ve had very high temperatures this summer and the grass has been struggling. Selling in the fall will allow you to spruce up your yard and have it look inviting. Curb appeal is important, and selling in the fall will help your curb appeal greatly.
If you have any questions about why the fall is such an opportune time for you to sell or about the home selling process in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
This winter is likely to be a very important moment for many home sellers. That’s because three big trends are coming together to affect Lancaster County home prices right now:
1. Housing inventory remains extremely tight. The total number of homes on the market fell 10% year over year in the last quarter. This is the biggest drop since 2013, and it's part of a consistent pattern of very limited and decreasing housing supply. Of course, the fewer homes there are on the market, the easier it is to sell, and the higher the price you can expect to get. Home prices have increased almost 6.5% nationally since last year.
2. Buyers are increasingly optimistic. Despite the tight inventory, homebuyers are increasingly optimistic and continue to look for homes. Some of this has to do with the recent growth in income and job stability. Loosening lending standards are also making many home buyers eager to take advantage of current mortgage rates, which slipped under 4% recently.
It’s the perfect time to get in the real estate market.
3. The new tax reform bill will impact the market. The federal government recently passed the Tax Cuts and Jobs Act, which majorly overhauled our tax code. While it’s unclear how this will affect the real estate market as a whole, there are some changes that do not favor home sellers. As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth for home prices in 2018, with an appreciation rate of 1% to 3%. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership. On the bright side, no changes were made in the rules surrounding capital gains for home sales, which is good news for home sellers.
When you put all three of these trends together, two big conclusions emerge. First, now is a very favorable moment for home sellers, thanks to the shortage in the market, the many eager buyers, and the high and rising prices. On the other hand, higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes.
If you are looking to take advantage of the present moment to sell your home, please reach out by giving us a call or sending us an email. We look forward to hearing from you soon.
Home remodeling is hotter than ever.
According to researchers at Harvard University, remodeling investment is up 6% over last year, and now makes up a $324 billion market.
According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns:
1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment.2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return.
3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck.
Some will make more sense for your home than others.
4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000.5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That's why a typical window replacement should yield at least a 70% return on your investment.
Clearly, some of them will make more sense for your home than others. If you're considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you'll be able to get.
If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could be worth. I look forward to hearing from you!
