With the fall season upon us, change is in the air. For families, children are growing up and moving out of the house, leaving for college or moving up and out – into the working world. Parents are finding themselves as empty nesters for the first time and might have some big decisions to make. Is it the right time to sell that family home? The question is even more daunting when we’ve been faced with the largest pandemic in years! This has many potential sellers paralyzed and confused instead of excited about their next chapter in life. We know it can be scary. Selling at the wrong time could haunt you down the road, so we want to help you avoid that!
Consider this: selling a home in 2020 and beyond is going to look a lot different than it used to because of the pandemic. The lingering effects will likely last into 2021 and beyond, but in the meantime we need to continue living our lives (safely). Not every seller has the luxury to take a wait-and-see approach without making serious trade-offs, but remember, to sell during COVID-19 is a personal decision. We encourage you to spend some time considering how relevant financial variables, health concerns, and local government regulations are and how they will impact your home sale process before making any big decisions.
Look at the Overall Strength of the Market
The overall strength of the market is an important part of both buying and selling. With that in mind, timing becomes even more important if you are interested in buying and selling at the same time.
Many people are wondering if they should sell their home during COVID-19, because they are scared about being able to sell quickly while also making a profit. The truth is, despite the pandemic, the market has remained vibrant for both buyers and sellers. Most states have deemed real estate agents as essential businesses. Fortunately, the market quickly adapted to the changes presented by the pandemic, such as offering home owners ways to sell a home virtually. That said, no market remains the same forever, so if you want to make sure that you are making moves that are wise, the best move is to consult with a local market expert. Call Delphi Reality at (925) 705-1300 with any questions and we can help give you clarity and peace of mind throughout the home selling process.
Maximize What Your Home is Worth
The most important part of understanding timing is making sure that you can fully maximize what your home is worth. So if you want to sell for the most money possible, make sure to take these factors into consideration:
Decide If You Need to Remodel
First look into the market value of your home, and compare it to the actual cost of the remodel. A local real estate professional can help you determine your home’s market value, and you’ll also want to get a couple quotes from contractors on the potential pricing of the remodel. Once you have those two factors narrowed down, you can to determine if a remodel is what you need to receive a return on investment when you sell your home.
Price It A Little Low
This may appear to be counterintuitive, as many homeowners think that pricing their homes a little over the market value will leave them with room to negotiate. In reality, this just ends up dramatically lessening the demand for your house. You want your home to be a popular option! Instead of the seller trying to attract one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be negotiating with one buyer over the price, but will instead have multiple buyers fighting with each other over the house. This is what you want!
Realtor.com gives this advice, “Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.” Make sure your pricing helps you stand out amongst the others — in a positive way.
Hire a Professional
We’ve said it before and we will say it again, hire a professional! This will guarantee that you maximize the money you get for your house.
Reasons to Wait to Sell:
- You haven’t built equity yet.
- You would benefit keeping the property as a rental.
- You’re not emotionally ready to sell your home.
- You can’t afford a remodel.
Other Information Sellers Should Be Aware of in 2020
In normal circumstances, homes that sit on the market above an average number of days are at a disadvantage. Homes with a high days on market count can carry a stigma — buyers wonder if the property has something wrong with it or if it’s priced incorrectly. Fortunately, buyers and buyers’ agents are considerate of COVID-19’s impact on the market so they are unlikely to look down upon homes taking longer to sell. Some MLSs are even suspending or pausing the accumulation of days on market in order to accommodate for this slower period.
You’re Allowed to Change Your Mind
If you list your home and then are unable to follow through with the sale due to an unforeseen event like an illness, job loss, or other reason, you can cancel the transaction without repercussions so long as you include a COVID-19 clause in the home sale contract.
No matter what you choose to do for your next home, it’s important to work with your top real estate team. We can show you how to prepare your home for sale and give you a way to sell your home quickly, no matter what the market decides to do.
For comments or inquires contact:
Alex Khodadad, Broker, CPA
1930 Contra Costa Blvd.
Pleasant Hill, CA 94523
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