7 Things Every Seller Should Know in this Market
The real estate market has been red hot for more than a year, pushing prices up in every neighborhood in Evergreen, Conifer, Morrison--really every community in the Foothills. The high prices come with pros and cons, though. While it feels like a great time to sell a house, more than 80% of young Americans (18 to 34 years old) say that now is the wrong time to buy.
You might wonder, "How can I sell my home when no one wants to buy in this real estate market?" That's a terrific question. Luckily, a little preparation can go a long way in making the process easier and helping you get as much as possible for your home.
1. The Real Estate Market Is Red Hot Right Now!
At a 30,000 foot view, the real estate market is red hot right now because supply has not kept up with demand. To some extent, especially down the hill (in and closer to Denver), the short supply comes from the high price of construction materials. Developers don't want to build single-family homes when essential materials like lumber cost so much.
The problem might not be as recent as it seems, though. About 12.3 million households were formed in the U.S. between January 2012 and June 2021. During that same period, only 7 million homes were built. The short supply has finally caught up as young people plan to start families and purchase their first homes.
What's important for sellers to recognize is that the U.S. has about 5 million fewer houses than it needs to meet demand. That makes all residential real estate more valuable.
2. Expect to Spend a Lot of Time and Money on Home Improvements
Do you plan to invest in some home improvements before putting your house on the market? Make sure you set aside plenty of time and money. I recently remodeled my '60's modern home and was stunned by not only the amazing increase in construction materials but the difficulty in getting contractors to show up.
Supply chain disruptions have forced contractors and construction companies to charge higher prices and work at slower paces. Many of them would love to get more work accomplished. Unfortunately, it's hard for them to source some of the materials they need to keep up with client requests. And of course in the Foothills we have the added limitations of scarce contractors in general.
Talk to local contractors now so you can get realistic price and time estimates. If you don't already have a contractor, talk to me to get recommendations. As an experienced real estate professional I will know which renovations companies are more likely to accommodate your preferred schedule.
3. Find a Moving Company That Follows Safe Procedures
A lot of cities and states are lifting COVID-19 restrictions. The virus still poses a threat, though. Make sure you choose a moving company that follows safety procedures and takes your health seriously. The movers will spend a lot of time in your home, so it makes sense to find a company that enforces safety precautions.
4. Interest Rates Will Likely Increase Soon
Many economists believe that the Federal Reserve will need to increase interest rates soon to combat inflation. In fact I just read an article that said the Fed will likely increase rates 6 times this year. Now that doesn't directly relate to mortgage interest rates--but it will undoubtedly result in an increase. Just keep the possibility in mind. Historically low interest rates result in great affordability and keep demand high for us. As rates increase it will exclude some buyers from being able to afford their dream foothills home--and fewer buyers means less aggressive multiple offer scenarios.
5. Have a Plan for Post Closing Occupancy
"Can I sell my home at a high price?" Yes, but it might take a little time to find the best replacement home.
While the frenzy is in full effect I've been negotiating extended "Post Closing Occupancy" for my seller clients. This allows them to stay in their old home while patiently finding the perfect new home. It works great and takes a lot of the anxiety of juggling the transition without the typical house hunting urgency
The real estate market is starting to show signs of "reducing the acceleration" in the sense that we're still seeing high demand but a little less frenzied than last summer. That could be a result of the typical seasonality on Evergreen but it could be a sign of a more balanced market in the near future. Every one of my listings in 2022 has sold in the first weekend -- so it's not as though I can say the sky is falling. But the indicators are starting to reveal themselves especially in homes that aren't marketed at a high level that a slow down is on the horizon.
But the less buyers have to compete for your home the less likely it will be to negotiate super flexible terms for my sellers!
7. Find the Best Real Estate Agent!
Are you ready — or at least thinking about — putting your house on the market? I've been selling homes in Evergreen and the Foothills since the '90's! (yes it has gone by in the blink of an eye).
Along the way I've established remarkable best practices and applied my deep work ethic to assist hundreds of clients in making their best move. Get in contact so I can help you make informed choices that will help you get a great price for your home, find a wonderful new place to live, and avoid a lot of the headaches people associate with moving!