If you will be listing your home for sale soon, there are some key facts that could impact your overall success at doing so. For instance, the recent changes instigated by the Federal Reserve resulted in higher interest rates for banks and those higher charges are passed along to borrowers. In addition, some parts of the country are still struggling to emerge from the Great Recession and in those areas selling your home could be very challenging. Therefore, it will be very helpful to be aware of the following information.
#1-Remember That The National Housing Market May Not Apply To Your Sale
If you have been perusing the magazines and newspapers for new information on the housing market, it is important to remember that your location will typically impact the sale of your home. For instance, research has recently established that the price of homes in New Orleans, Louisiana has increased dramatically as of 2015, as have homes in Dallas, Texas and Boston, Massachusetts. Unfortunately, homes in Newark, New Jersey, Detroit, Michigan and Stockton, California experienced the least amount of growth during the same time period.
Therefore, it is best to not consider a national average or even what your neighbor's home sold for. Instead, consult with your real estate agent to determine what the average amount of time for homes to sell in your area currently is and plan accordingly.
#2-It Is A Buyer's Market...And You Need To Make Your Home Appeal To As Many Prospective Buyers As Possible
Although you may hear of someone who put their home and the market and sold it the same day, but that occurrence is far from the norm. Since it is currently a buyer's market, more homes are on the market and they often stay there for longer periods of time. It also means that you may need to work with your real estate agent to make the home more appealing than similar homes nearby.
For instance, although you have probably already taken the necessary steps to beautify and stage your home for optimum benefit, you may want to consider other changes as well. Specifically, landscaping trends for 2016 are including dark blue or black fences, often in the exact shade of the home itself. Other popular ideas include the use of native plants throughout your yard and container gardens being seen both inside and outside of the home.
#3-It Is Important To Be Aware Of The Higher Cost Of Borrowing Now
Since most people who buys homes do so as the result of a bank loan, it is a good idea to remember that in December of 2015, the Federal Reserve raised the interest rate for the money they loan to banks. While it has previously been anywhere from 0% to 0.25%, it grew to 0.25% to 0.5%. Although the small increase may seem almost inconsequential, the truth is that those rates mean that many extra millions of dollars of interest on loans will accrue after the raise.
Since banks now must pay more for the money they get from the government, their interest rates on loans to their customers have also increased. Therefore, many home buyers are being extra cautious because they are looking at the total cost of the home, include the higher interest rates. You may find that dropping the price of your home, even slightly, can make it more attractive to shoppers.
In conclusion, if you are planning to sell your home soon, it is a good idea to consider the facts listed above. By applying those facts, you will find that it will be easier to plan for the sale. Contact a real estate agent who specializes in homes for sale to learn more.