Faster home sales in 2022 may make it a great year to put yours up for sale. However, the record-low inventory makes the market for purchasing a new house quite competitive.
It's an extensive choice to sell your house, and it may be an emotional one for many individuals. In determining whether or not to sell your home, it might be helpful to take a step back and look at the market as a whole in light of the current trends.
The demand for housing far outstrips the supply now. Furthermore, the enormous millennial generation is entering its prime home-buying years at a time when home-building has trailed significantly behind what is required to maintain pace with the creation of new households.
As a result, the housing market is seeing a "boost," with properties selling quickly, often for more than the asking price, to cash-ready purchasers.
A minor increase in new listings, however, might signal a turning point for those who have been on the fence about selling due to uncertainty about where they will go next.
Here are 10 Reasons to Sell Your Home Now in 2022.
Home values are likely to grow at a record pace through 2022
By 2022, it's expected that home prices will have increased at a rate never seen before.
According to the National Association of Realtors, the median home price in the United States will increase by 8.4 percent from 2021 to 2022. Half of the record 17% annualized price rise anticipated in 2021, according to NAR statistics, would be achieved.
Houses are moving off the market swiftly.
Property transactions are at an all-time high, and the spring real estate market is right around the horizon. In January, Realtor.com reported that the typical house was on the market for just 61 days before it was sold. That's a record-breaking speed, for sure. There were a number of major urban markets where home sales accelerated.
Property prices are rising, and sellers see higher offers.
It's not hard to find purchasers complaining online about houses selling for tens of thousands more than they were initially asking. However, tales can also paint an inaccurate impression.
In the Spring of 2022, due to competitive bidding and high demand, the prices of nearly a third of properties sold for more than they were initially advertised for. About two-thirds of properties sell for the asking amount or less, according to this statistic.
If you're trying to sell, know that getting the highest price possible isn't certain , especially in this market, and that a skilled agent may make a big difference in your profit.
Currently, mortgage rates are at record lows.
There was a significant increase in the cost of a mortgage in 2022. But mortgage rates have historically been much, much higher than they are now.
The 30-year mortgage rate has historically been around 7%. Thus, current mortgage rates of about 5% are still competitive.
You're Eager to Move Somewhere New
How important is proximity to family to you? We won't probe further. Perhaps you're a city dweller who often fantasizes about the vast countryside. In any case, you can count on our assistance to ensure a smooth transition.
Since the COVID-19 epidemic hit, many new building projects and home constructions have been put on hold due to supply chain concerns. In addition to supply disruptions, rising material prices have discouraged many potential home builders. In a market where inventory is already tight, new listings are quickly snapped up.
We can look forward and see that once supply chain difficulties are resolved, housing inventory will continue to expand, possibly making the current sellers’ market less appealing.
You have new housing requirements
Everything has changed drastically since the epidemic began, whether people have started working from home, gotten engaged, or had children. These days, many individuals spend more time at home than ever before, and as a result, they're beginning to realize that their requirements have evolved.
You could have fantasized about having a larger kitchen or extra bedrooms. Find the house of your dreams now, and sell your old one for top dollar while the market is hot.
CoreLogic reports that over the previous two years, the average homeowner has seen their home's value increase by $17,000. Many current homeowners are taking advantage of their rising equity to upgrade to their ideal residences.
You’ve reached the point where you want a larger, more comfortable house.
Although more expensive, the increased cost might work to your benefit. You can purchase a new house before selling your old one if you've been living in your current one for a time and have saved enough money for a down payment. Our own clients have significantly benefited from this competitive edge.
Customers Ignore Inspections
To verify the asking price and guarantee there are no hidden issues with the house, purchasers have traditionally been advised to choose a home inspection.
To submit the best possible offer and increase their chances of being accepted, many current purchasers are choosing to forego the inspection process.
Sellers are still obligated to advise customers of any major flaws and offer as much relevant data as they can. Buying a house is a significant financial commitment, so it's useful when sellers are honest about any problems they've had or difficulties they've identified.
Reasons to sell your house now
For a number of years now, and probably for the foreseeable future as well, inventory has been low. While demand is certainly important, you should also take into account any number of other variables that may be relevant to your case.
1. Utilize the market's current appreciation
It's possible that after only a few years of ownership, your property will be worth more than you originally paid for it.
Many homeowners view their houses as investments, and if they need to access the equity, they've built up for whatever reason (such as retirement, the purchase of another home, or another sort of investment), selling their property may be the best option.
2. Modernize for the convenience of telecommuting
In 2020, while the COVID-19 epidemic was at its height, people rethought the concept of "home" as both their place of labor and education. There was a change in where and how people lived, and it seems that the rise of the stay-at-home worker is here to stay. Is it possible for you to work from home, and if so, does your space accommodate you?
Possible motivating factors for a current relocation include changes in family composition or preferred way of life.
3. Refinance while mortgage rates are still cheap.
Some purchasers may find it impossible to afford a property if the price is too high and the interest rate is also rising. With interest rates being relatively low, listing your property for sale now can help you attract the largest possible audience.
As much as 64 percent of sellers are also in the market for a new house, so rising loan rates may influence their final choice. A rise in interest rates might increase the cost of your purchases.
Reasons to wait to sell your house
Do take note if the headline up top made you breathe a sigh of relief or prompted you to start thinking of your own reasons why you shouldn't sell. The time may not be right for you to sell. Of course, that's OK with me. It's up to you to decide.
Collect data and give it some serious consideration. When making a decision, there is no "correct" response, only your own.
Zillow conducted a survey to learn more about the hesitations of potential home sellers and the factors that contribute to those hesitations. As some of the arguments against a sale:
1. You can’t afford to sell
Due to rising home values, it now appears that many homeowners are unconcerned with having a mortgage that is greater than what their home is currently worth.
However, if your mortgage is more than your home is worth, you may want to wait until you have built up some equity, provided that you can still afford the monthly payments.
If a homeowner has a mortgage that exceeds the value of their home, they are "underwater" or have "negative equity." Cash is needed at the closing table if you are selling while underwater.
Waiting for your home's value to rise could be the most financially prudent course of action.
2. Unable to move nearby
If you're selling because your home's value has increased, it's likely that all the other houses in the area have done the same, making it more difficult to find a buyer.
Zillow reports that of homebuyers who buy and sell within a year, 19% remain in the same neighborhood, 31% relocate to another neighborhood within the same city, 32% relocate to another city or metro within the same state, and 18% relocate outside of the country.
Selling charges might significantly reduce the amount you'll be able to use from your home's equity toward a new purchase.
To determine how much house you can afford, use an affordability calculator after you have an idea of the down payment you will have available.
3. Renovations for resale
Many homeowners can relate to having a few half-done home improvement projects despite their best intentions.
Nearly half of all homeowners (43%) say that finding DIY time is their greatest challenge when it comes to home improvement decisions, which may explain why the same percentage of people say they have unfinished home improvement projects (usually two).
It may make sense to finish the projects that are likely to make the biggest difference to a typical seller, or it may make sense to sell "as is," depending on the cost to complete those projects and the timeline you expect to sell.
Disclose any structural defects, water damage, or lead paint in your home, as doing so is required by law in most areas. Prices of high-ticket items may discourage potential buyers. If time is of the essence and you want to avoid setbacks, you should talk to a real estate agent or lawyer about what you need to disclose to potential buyers.
It is common practice for buyers to request a home inspection prior to closing. Depending on the severity of the problems found by the inspector, the buyer may request that you either make repairs before closing, lower the asking price, or provide a credit at closing.
Many sellers fix up known problems before putting their homes on the market because they know that if they don't, it could cost them hundreds or even thousands of dollars.
4. Your deadline for moving is firm.
It's easy to miss the optimal time of year to sell if you have to put in a lot of work (months' worth of improvements and repairs) before your house is ready to show. If you're moving for a new job or attempting to time the sale of your house with the buying of a new one, you may also feel pressured for time.
5. If possible, you should avoid showings in person.
To anybody who has tried to sell a property before, you know how difficult it is to always have it spotless and ready for potential buyers to tour. Safety is an issue that may prevent many buyers and sellers from scheduling in-person property showings during the epidemic.
In order to narrow down the pool of potential purchasers, you may use marketing tools such as 3D models, interactive floor plans, and virtual tours.
Although it's true that just a tiny percentage of purchasers actually complete a purchase without ever setting foot inside the property (about 4 percent), this fact nevertheless warrants consideration if health or time constraints are preventing you from fully opening your home to potential buyers.
6. Presently, the market favors purchasers.
Even though houses throughout the country are selling quickly and for close to the asking price, that doesn't guarantee it's the case where you live. If it's difficult to sell your home because of the current market conditions, it could be best to hold off.
Do newly renovated properties sell for more?
You may make a good return on your home's sale if you have recently replaced systems like the HVAC, plumbing, and roofing.
Or, if you have desirable upgrades like a quartz kitchen counter, steam oven, curbless shower, or new appliances, be sure to highlight those in your offering.
Ready To Move Forward And Sell Your House? Fill Out The Form Or Call Us At 256-488-4055
Can you sell your house to the city? It's possible to sell your home to the government and then lease it back, but the procedure is complicated. This is because most authorities avoid making purchases from individual homeowners. Before making an offer on a home, Veritas Homebuyers first explains how to initiate contact with city officials. […]
Aluminum wiring is electrical wiring that is made of aluminum rather than traditional copper. It was used in the 1960s and 1970s as a cheaper alternative to copper wiring, but it has since been discovered that aluminum wiring can pose a risk of electrical fires and overheating. When looking to sell a home, how can […]
Selling a house with termite history can be challenging, as potential buyers may be concerned about the damage that termites have caused and the costs of repairing it. However, with proper knowledge and preparation, it is possible to sell a house with a termite history successfully. Veritas Buyers aims to inform about the real estate's […]
Selling a house with an old roof can cause hiccups along the road due to home inspections; the prospective buyer wants and needs your roof's condition and age. With the current cost of roofing materials and the state of the market, many buyers won't consider purchasing a house that needs roof repairs or a total […]