You spent the holidays thinking about it and now 2018 is here and you’re on the fence – should you list your house for sale? We’ve compiled 5 things to consider as you contemplate this all important topic:
1. Are we too big / too small for this house? We remember when we started having kids and one day we looked up and had teenagers oozing out of the walls! The #1 reason we see listings today are due to life transitions. Consider listing if your family has grown recently due to an added member and you need the space; or shrank and you are feeling the pain of the cost of maintaining a larger home.
2. Is this the right time to list our home? As the wise man once said, “there is a time for every activity under the heavens.” While Nathan thinks he’s incredibly wise, Lori can tell you some stories that differ greatly.
Now could be a good time to capitalize on the market and get a higher price for your home. There are a few considerations for listing your home before the Spring rush. 1. Inventory is at a high right now, and we expect it to grow as the summer approaches, putting pressure on prices. While 2018 will be a good time to sell, we don’t anticipate seeing the seller’s market of the past few years. 2. Also consider that most new employees begin their jobs in January, transfers will not wait till Spring to move. 3. Another consideration is that most buyers are more motivated and serious now than in the Spring. Any showings now should generate quicker offers resulting in less time on market.
3. Can we wait and get more equity? In 1992 Nathan once decided to wait and skip a chance to invest in a smallish unknown company that he thought would take forever to get up and running – the company’s name was Starbucks. While homes (in DFW) have seen a massive surge in value over the last few years – prices are beginning to level out. As noted above, we’re also seeing an uptick in inventory which will put pressure on prices this year. Unless Amazon or some other large employer picks DFW as their HQ, prices should continue to level out. We anticipate that home values will continue to increase, but at a more modest rate that matches normal growth patterns. And – generally speaking, chasing the market is a bad idea. List when you need to and remember if you sell low, expect to buy low, if you sell high expect to buy high.
4. Can we afford to wait to buy? As noted above, you will most likely buy high – so consider your home’s current equity and what you will afford once your home sells. But also consider interest rates for 2018. All indicators are that this will be the year we begin seeing rates climb. The economy is booming and most experts feel the Fed will respond in kind by driving up rates to keep the market from overheating and driving up inflation. We recommend visiting with a local lender who can help you determine an approximate budget and also discuss rates.
5. Do we need an agent or should we sell it ourselves? When considering selling your own home by yourself, the more important question you should ask is, “Can you keep more money in your pocket if you sell your home yourself?” The answer depends on your experience with the process, the market and your work / life schedule. You certainly gain by avoiding some of the costs associated with an agent’s commission, but you can lose big if you miscalculate the market & price of your home, miss out on qualified buyers, or fail to anticipate the effort of selling your home. Remember many Buyer’s Agents will avoid For Sale Buy Owners (FSBOs) because of the headache associated with dealing directly with an owner, risk of not getting paid and the amount of work to get FSBOs to close. As result, many qualified buyers will not see your home on their tour of showings.
There’s a number of other considerations – think about the real perceived value of your home to your family, not just it’s cash value. Also what is the event in your life that triggered this line of thinking? As your full-time Realtor, we are here to help you think through these considerations and more. Give us a call to set a time to sit down and discuss if 2018 is the right year to list your home.