2018 Is A Great Time To Sell Your Home!

It’s a sellers market! And if you’ve been considering selling your home, 2018 might be the year to do it. According to Trulia, only 6% of homeowners are considering selling their home this year. And the buyers are out there!! The poll also said, that 31% of homeowners thought, that this year, would be better than the last for home sales. That mean, fewer homes as competition, making this a classic sellers market.

Zillow, agrees with Trulia. Which like I said before, makes this a sellers market. You may think, great more value to my home. However, while the prices of homes, will go up with lack of inventory, what also goes up is the amount of down payment a buyer will have to come up with. And if the buyer is unable to meet that criteria, the loan won’t happen, killing the deal. So, with all of this going on, you should consider that 2018 is the year to sell your home. And there are 4 reasons why you should.

BUYERS: They’re out there. And the inventory is lacking, in most areas. And they are beginning their home searches earlier in the year, to beat out other buyers who might be putting off their search. You want to be positioned now, to capture those buyers! Just before 2018, buyers and sellers were hitting up Real Estate websites at a 25% higher rate, than earlier in 2017. That spike happened specifically on December 26. And that upward trend continued, through the first few months of 2018.

Traditionally, buyers started their home search in early spring. But cold weather hasn’t stopped perspective buyers from beginning their search earlier. Even the holidays, saw an increase in Real Estate related searches from major Home Buyer/Seller sites. And that has everything to do with the lack of inventory. The lack of inventory has allowed sellers to enjoy above asking price offers, but this is a trend that doesn’t last forever. Then for sellers, the higher the price can also mean an added layer of competition, new home sales. New construction will be serious competition for homes that have been lived in. Buyers find it attractive with higher prices, to be able to choose tiles, colors and upgrades, and they feel they get more bang for their buck. It’s time to take advantage of this trend as a seller, and as a buyer, as well. Because right now, prices are going to continue to climb. The longer you wait, the higher the price.

LOW INTEREST RATES: This affects both buyers and sellers. The reason for buyers is obvious, but once you sell your home, you become the buyer! In January, the average interest rate for a 30-year fixed-rate mortgage was 4.17 percent, according to NerdWallet. Mortgage rates have slightly increased since the end of 2017.

And though rates aren’t expected to go up much this year, they are expected to increase. The Mortgage Bankers Association predicts 30-year fixed-rate mortgages will rise to 4.6 percent this year, and it expects rates to rise to 5 percent in 2019 and 5.3 percent in 2020. Higher rates are seen as good for the economy, but that can also cut the buyer pool, as qualification for the mortgage is harder. This also means, buyers will begin their search much sooner than in past years. And as those interest rates climb, the market will begin to shift from sellers market to buyers market.

CHEAPER PROPERTY TAXES: The Tax Cuts and Jobs Act passed at the end of 2017 means some changes for home related tax policy for 2018. Mortgage interest rates are only deductible up to $750,000 in debt and property taxes are only deductible up to $10,000. This doesn’t affect all homeowners, but in counties with higher property taxes, the impact will most likely be felt. If you count on those deductions, 2019 could be a tough year. Now might be the time, for a change in location.

Coastal areas, and places with high ranked schools are scheduled to be impacted the most in 2019, by these tax changes. Of course if you have school age children, the impact will be lessened, by the child tax credit. But for those who are empty nester’s or just want to downsize, it might be time to move. And sooner or later, people are going to understand the implications of the new tax laws. And pricier neighborhoods will begin to feel that shift. If you’re in one of those areas, and have considered selling now is the time!

RENOVATION RETURN WILL TAKE A YEAR: Any renovations you do this year, will be for you. And those renovations won’t see a 100% return to the homeowner, when you are ready to sell. So make your home ready for sale, by reducing clutter, keep up with general maintenance, and keep your curb appeal up. While buyers can get passed a dark kitchen, or a bathroom needing updating, those other things will kill a deal. Whether buying or selling, make sure you approach your purchase or sale, seriously.

And remember, I’m your agent for life!

Michelle Flood Realtor/Notary Public

Florida Luxury Realty

theagentdiva@gmail.com

727-457-7474