It’s no secret that the current housing market in the US is operating at an all time high, with bidding wars the norm for many agents. HomeLight reports a few interesting trends in their Top Agent Insights report for Summer/Fall 2021 such as the fact the value of a home gym has risen 69%, from $3,635 pre-COVID to $6,127 post-vaccine.
HomeLight also noted that price volatility will limit home construction, and 55% of agents report that builders are having to increase prices on in-contract buyers due to material cost increases, and 44.8% of agents report that builders are pricing homes later in the build cycle to account for fluctuations. This is great news for current homeowners as it means many buyers will purchase existing homes due to stay within their budget.
If you’re looking to profit from today’s hot housing market, the information below should help you avoid being lowballed when selling your home.
Know what your home is worth
In the past, when homeowners wanted to determine the value of their homes, they would have to hire a professional appraiser and pay significant sums of money to get a comprehensive report drawn up. Today, however, things are much simpler. You can determine your home’s worth by getting a free online home appraisal.
Today’s home appraisal solutions use automated valuation models (AVMs) to determine the home’s value in a matter of minutes. AVMs base their decisions on data points such as auditor and tax assessor records, user-submitted data, and MLS listings and sales.
It’s important to note that these appraisal tools are only for getting a ballpark estimate of your home’s value because they only focus on the straight facts rather than the experience of your property.
Work with a realtor
Once you’ve gotten a general handle on your home’s value, it’s important to speak with a realtor if you want to get top dollar for your home. While it’s true that agents on average collect a 6% commission, parts of it are used to cover marketing expenses, professional subscriptions, the buyer’s agent, and broker fees.
In most cases, hiring a realtor pays for itself because homes listed by realtors often sell for significantly more than those sold by the owners themselves. This is because they know the ins and outs of the industry, know how to tailor showings to each buyer, have access to professional market analysis tools, and much more.
By leveraging these additional resources realtors are able to close deals faster, and also command higher offer prices. Realtors are only paid a commission if/when your home sells, so you don’t have to worry about paying upfront costs and being on the hook if a sale doesn’t occur.
A potential alternative to working with a realtor is to sell to a cash buyer (e.g. home flippers) or iBuyers, however the former often make lowball offers, and the latter generally make fair offers, however they charge slightly higher commissions than a traditional realtor. Ultimately, regardless of the route you take to sell your home, investing in expert help can pay for itself later on.
