Today’s housing market is different than it was just a few months ago. And if you’re thinking about selling your house, that may leave you wondering what you need to do differently as a result. The answer is simple. Taking the time upfront to prep your house appropriately and create a solid plan can help bring in the greatest return on your investment.
Here are a few simple tips to make sure you maximize the sale of your house this fall.
One of the first things buyers will notice is the price of your house. That’s because the price sends a message to home shoppers. Pricing your house too high to begin with could put you at a disadvantage by discouraging buyers from making an offer. On the flip side, pricing your house too low may make buyers worry there’s some underlying issue or something wrong with the home.
Your goal in pricing your house is to gain the attention of prospective buyers and get them to make an offer. And with price growth and buyer demand moderating, as well as a greater supply of homes available for sale, pricing your home appropriately for where the market is today has become more important than ever before.
But how do you know that perfect number? Pricing your house isn’t a guessing game. It takes skill and expertise. Work with a trusted real estate advisor to determine the current market value for your home.
It may sound simple but keeping your house clean is another key to making sure it gets the attention it deserves. As realtor.com says in the Home Selling Checklist:
“When selling your home, it’s important to keep everything tidy for buyers, and you never know when a buyer is going to want to schedule a last-minute tour.”
Before each buyer visits, assess your space and determine what needs your attention. Wash the dishes, make the beds, and put away any clutter. Doing these simple things can reduce potential distractions for buyers.
For more tips, check out this checklist for preparing your house for sale. Ultimately an agent is your best resource for tailored advice, but this list can help get you started.
Finally, it’s important for buyers to see all the possible ways they can make your house their next home. An easy first step to create this blank canvas is removing personal items, like pictures, awards, and sentimental belongings. It’s also a good idea to remove any excess furniture to help the rooms feel bigger and make sure there’s ample space for touring buyers to stand and look at the layout.
If you’re unsure what should be packed away and what can stay, consult your trusted real estate advisor. Spending the time on this step can pay off in the long run. As a recent article from the National Association of Realtors (NAR) explains:
“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”
Selling a house requires prep work and expertise. If you’re looking to sell your house this season, let’s connect so you have advice on how to get it ready to list, how to help it stand out in today’s shifting market, and more.
Content previously posted on Keeping Current Matters
Millennials are in a situation where they are not simply buying homes; they are also making the first significant purchase of their lives. This is why it’s common for them to be much more attentive when looking for a home. They want to make sure that they get their money’s worth. Aside from the fact that Texas is very friendly to millennial buyers, there are also many homes on the market here. They have so many choices here, so Texas is a popular market for millennials.
The steps necessary for someone to buy a home today are a lot different than what they used to be. One of the main reasons for this is the change in buyer demographics. While baby boomers and Gen-X have dominated the real estate buyers market for decades, the past few years have brought a shift with more and more millennials looking to buy.
Millennials otherwise referred to as Generation Y, are a group of people born from 1980 to 1995. Their generation followed the Baby Boomers (1945-1964) and Generation X (1961-1979). Millennials currently make up the largest demographic cohort in the United States. Studies describe the main distinguishing traits of millennials as confidence, innovation, education, and social networks.
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| Millennials are characterized by unpredictable purchasing patterns. |
Texas has, in recent years, become one of the most popular US states for millennials to buy their first homes. Houston, Dallas, Austin, and McKinney currently lead the Texas real estate market. The main attractions that can explain why Texas is a popular market for millennials are:
● Low cost of living,
● No state income tax,
● Variety in real estate properties,
● Variety in real estate pricing.
As previously stated, millennial buyers tend to have precise wants and needs regarding house hunting. They will search until they find a home that checks all the boxes on their lists. Let’s go through some of the most common things which draw millennials to the Texas real estate market.
The fact that millennials purchasing patterns are so erratic makes variety very important. Since it offers a wide range of options regarding a home’s location, it is understandable why Texas is a popular market for millennials. From rural homes in quiet areas for online freelancers who don’t have a commute to work to apartments in commercial areas for young workers who enjoy relaxing in a bar after a hard day.
Research shows that millennials tend to look for a home that can give them a way of life that differs from what they are used to. For instance, millennials who are moving from rural areas in Mississippi tend to look for urban metropolitan areas in Texas. The main reason many decide on this step is that they focus significantly on location. They are traveling a lot to get to work or amenities, so now they want to live close to those places. Understanding how a home’s location will reflect on their lives is a big part of how they choose a place to live.
As they have spent the last few years locked up because of the pandemic, most millennials want spacious outdoor areas to chill alone or host gatherings with friends and family. This is something that Texas has a lot of. This demographic also very much appreciate specific amenities such as a back porch or deck, a fire pit and grill, and a garden or glasshouse.
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| One of the main reasons Texas is a popular market for millennials is that most suburban homes here offer large outdoor areas like backyards. |
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| Having a smart thermostat is almost a given in the minds of millennial buyers. |
The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond 10 trillion dollars over the past year, and many called that a troubling sign when it happened for the first time in history.
Recently Odeta Kushi, Deputy Chief Economist at First American, answered that question when she said:
“U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national “LTV” in Q2 2022 was 29.5%, the lowest since 1983.”
She continued on to say:
“Homeowners had an average of $320,000 in inflation-adjusted equity in their homes in Q2 2022, an all-time high.”
The term LTV refers to loan to value ratio. For more context, here’s how the Mortgage Reports defines it:
“Your ‘loan to value ratio’ (LTV) compares the size of your mortgage loan to the value of the home. For example: If your home is worth $200,000, and you have a mortgage for $180,000, your LTV ratio is 90% — because the loan makes up 90% of the total price.
You can also think about LTV in terms of your down payment. If you put 20% down, that means you’re borrowing 80% of the home’s value. So your LTV ratio is 80%.”
This is yet another reason we won’t see the housing market crash. Home equity allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to sell it and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.
Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense.
Content previously posted on Keeping Current Matters