If you’ve been waiting for the perfect time to sell your house, this is it! With unprecedented low inventory, homes don’t last long in this market. Plus, homes are selling for top dollar. If you wait to sell your home, you’ll end up paying more. These are my top 5 reasons why now is the best time to sell!
Why Sell Now?
You know it’s a seller’s market and home values are up, Yet, you’re not selling your home. Why?
Some sellers tell us they worry they won’t be able to find another home. I understand why that’s a concern because you keep hearing that inventory is low. It’s true, but what if I told you there are 3x more new construction homes available than resale properties? When you hire a real estate agent with experience, like you’ll find with our team, you’ll find another home! We have solutions for you!
Honestly, there’s never been a better time to sell your home! In fact, waiting will come at a significant price!
1. No competition
This is a seller’s market like we’ve never seen before. That’s because we have such low inventory. As a seller, that means you don’t have any competition. So, your home will sell quickly and probably for more than you paid for it! Here are some tips to make sure your home sells quickly because preparation and home staging still matter even in a seller’s market.
May is traditionally one of the most popular months to list your home. So, we may see a slight increase in competition then. Still, our inventory numbers are so low it likely won’t impact your chance of selling your home.
However, the same may not hold true the second half of the year. Real estate experts predict home sales will increase the second half of the year. Think the summer and fall real estate season. Again, it will take many new listings to reach healthy inventory levels. Every month you wait, you’ll probably have more competition.
If you wait, you’ll miss an opportunity to sell your home for the best possible value with the least amount of competition in history!
2. Buy low, sell high
You’ve probably heard the investing advice – buy low and sell high. It’s economics 101 if you want to make the most money. There couldn’t be a better time than now, to consider that advice!
Home prices are up. With a well-staged home, which we offer for FREE, you can sell high!
No matter when you bought your home, you probably paid less than current market values. If you purchased during the recession, you bought super low so you stand to make a lot of money now!
For example, let’s compare home prices in Rosewood Hills five years ago and today. In 2013, the average sales price was $185,222. Fast forward to 2018, and the average sales price is $253,647 with 8 closings so far this year.
That’s a home value increase of $68,425 in just the last 5 years!
Find Out The Value Of Your Home For Free!
While there’s lots of new construction in Rosewood Hills, only 2 out of those 8 closings this year were new construction homes. So, this is a great comparison for resale properties.
3. Interest rates are going up
Third, interest rates are going up which means you’ll pay more the longer you wait to purchase another home.
Historically speaking, interest rates are still low. So, lock in a low rate now before they trend upward.
The Mortgage Brokers Association expects 30-year mortgage rates will approach 5-percent by the end of the year. Why? The economy is doing well with a strong job market and fast economic growth.
There’s concern, though, that a stock market adjustment may impact rates. We’ll have to see how this plays out, but why take the chance when interest rate hikes significantly impact the purchase of a home.
The Consumer Financial Protection Bureau (CFPB) offers an interactive tool to compare mortgage rates in the Kansas City area. Currently, Missouri lenders are offering rates at or below 4.75-percent. So, rates are already creeping close to the 5-percent projections.
So, how much will these interest rate hikes cost you? For a $250-thousand house, with a standard down payment, interest over 30 years is just over $175-thousand. If the rates go up to 5.75-percent, interest skyrockets to over $220-thousand. That one-percent rate difference will cost you more than $44-thousand over the life of the loan. That’s a lot of money!
Crunch your own numbers in the CFPB database. Remember, while a 20-percent down payment is standard, it’s not the rule! There are many down payment assistance programs in the Kansas City area to help lower your costs. Many programs help you avoid paying private mortgage insurance.
4. New construction costs are going up
While new construction is definitely the answer to this inventory shortage, there’s no doubt you’ll pay more for a house than you did a decade ago. That’s true for any house now that we’re in a seller’s market. The trends show, though, that construction costs will continue to go up.
In the last ten years, they’ve gone up close to $19-thousand, according to the National Association of Home Builders.
Labor shortages are driving up prices along with material costs for things like lumber. When prices soar, the cost of framing a home goes up too. A tariff on Canadian lumber and more homes under construction are the reasons why prices are increasing.
5. Waiting will cost you
There’s no doubt, waiting to sell, will cost you money! You’ll get less for your home, and you’ll pay more to purchase a new home as construction costs and interest rates go up.
I understand the reluctance from sellers, who are worried they’ll have to pay more for a home or won’t be able to find a home to purchase. However, our experienced team knows where to look to find you a home. New construction offers an amazing opportunity to get a move-in ready home, customized to your liking.
You can build from the ground-up or purchase a home already under construction, shortening the move-in timeframe. With some of our properties, we can even finish them in 30 days.
Unlike previous real estate markets, where you perhaps didn’t have to consider new construction, now it’s your best option!
We’re new home specialists, focusing on all stages of new construction. As home staging experts, we have an eye for design allowing us to help you envision your new home from the ground-up.
We have homes available in seven new home communities including Robinson Meadows, Springhaven Estates, Stone Canyon, Rosewood Hills, Ryan Meadows, Brittany Ridge, and Sonora Valley. We also have access to many more new construction neighborhoods in the Kansas City metro.
Buying a new home now will save you money because you’re purchasing before construction costs and interest rates go up even more. You’ll also get to take advantage of the hot seller’s market, earning more for your home.
It’s a win-win situation.
So, who is this market perfect for? Everyone. That goes without saying as costs will continue to rise and home prices could drop slightly.
If you’re looking to downsize, you stand to earn the most. Whether your kids moved out or you’re downsizing your budget, now is the perfect time to lower your monthly costs by selling your home and moving to a smaller property.
Check out all my selling tips, so you’re one step closer to earning top dollar for your home!
What’s keeping you from selling your home? Comment below.