Thursday, March 31, 2016 / by Vanessa Saunders
If you live in New York, you are really in luck in 2016. Real estate prices are rapidly increasing due to the hot job market. Even if you don't live here, the market is trending in your favor too if you have decided to sell your home. Keep your eye on the following factors in order to make this a financially beneficial experience.
1. It's a seller's market. It is, but this also depends on where you live in the country. If the economy in a particular region has bounced back strong since the downturn that began in 2008, home prices will be higher because more people will be coming to that area for employment. There are some places, such as San Francisco and throughout Silicon Valley, where home prices have reached or even exceeded the boom years of the early 2000s. Make sure that you do your research to determine how strong job prospects are in your region.
2. The price must be right. It is going to be more important than ever to work with an experienced, licensed Realtor who understands your local market. You will need to price your home at the going market rate that reflects not only the value of your home but the neighborhood where it is located. Price too high, and there will be little interest in your property; too low, and potential buyers may wonder what hidden issues your property may have.
3. Going up. Mortgage rates also have a significant effect on the dollar figure that you use to price your home. While mortgage rates have been historically low in order to make homes more affordable, this is a trend that will most likely be ending in the near future. The Fed's interest rate increase in December hasn't had an appreciable difference on mortgage rates, but this will most likely not always be the case. Be aware that as mortgage rates increase, the amount of home that a buyer will be able to afford will decrease.
4. List during peak season. Take full advantage of the old rules of supply and demand. When the most people are looking to purchase a home is the best time to put yours on the market. The spring and summer months between April and June are generally the hottest time for buyers and a great opportunity for you to take advantage of potential bidding wars and faster sales.
5. Incentives. Incentives in a seller's market? It may not seem typical, but last year more than a third of all home sellers offered incentives. With the majority of the market made up of first-time homebuyers, providing incentives could result in higher profit and a faster sale for you.
Want to chat about the status of the market in our area? Connect with me today to get started.