Over the past year, the US housing market has seen a massive uptick in the number of individuals and families that are looking for a new home. As HomeLight notes in their Real Estate Top Agent Insights for Spring 2021 report, 94% of real estate agents report that bidding wars are on the rise or at the peak in their territories, and 97% say that historically low mortgage rates are continuing to boost buyer demand. Even with slight rate increases in recent weeks, many agents still believe it will take a significant interest rate hike to noticeably dampen demand.
Considering the flurry of activity in the housing market today, now’s a great time to put your home on the market. If you want to get a fair price or higher, you’ll want to consider the tips below.
1Get A Home Appraisal To know Its Worth
Before you get far into the home selling journey, you’ll want to get an appraisal for your home so you have a general idea of its worth. While appraisals used to require in-person inspections and carry hefty fees, it’s easier than ever to get a free home appraisal online.
- Most virtual appraisal tools use an automated valuation model (AVM) to calculate a home’s worth. These factor information from a variety of data sources such as:
- Data from county auditor and tax assessor records, including a home’s property tax assessment and auditor’s assessment of the gross living area of a property.
- User-submitted data such as information about home improvements (upgraded kitchens, a new roof, additional bathrooms).
- MLS listings and sales. This means the model scans through recent real estate transactions and then compares the seller’s property against comparable ones.
While an AVM gives you a good ballpark estimate of your home’s value there are some limitations. These include a reliance on general public information rather than actual property measurements, the fact the systems can’t factor real-time property condition, and an inability to factor the value of unique features such as a lakefront view.
2Enlist The Assistance Of A Licensed Realtor
After getting a virtual home appraisal, you can then enlist the help of a realtor to assist with selling your home, as real estate sales are much more intensive than taking photos of your property and creating listings on various real estate portals.
You need to know how to price your property, carer to the needs and desires of buyers, and much more. This is why hiring a real estate agent is essential, especially since only 8% of all home sales in 2019 were done by the owner.
While realtors collect a commission from your home’s sale, they’re an essential partner as in addition to scheduling and handling viewings, they also know the ins and outs of the industry and can help you avoid roadblocks that prevent successful sales.
If you’re still thinking of tackling the home selling journey on your own, consider the fact that homes that are sold by real estate professionals tend to fetch higher prices than those sold by the owners themselves. It makes sense considering how realtors incentivized based on the fact they receive a commission on each sale.