If you’re planning on selling your home this year, you are in luck.
According to Realtor.com’s economists, the 2016 housing market is forecasted to be mainly a seller’s market, filled with increasing home prices, relatively low inventory and fierce competition between the buyers.
But you could still make missteps on the way to the bank. Yes, your house will likely sell, but when? Remember, time is money. For sellers, it’s about understanding the ins and outs of their local market so they can optimize the price of their home and close quickly.
Follow these tips from the economists to get the most out of your home sale.
Price your home to the market
The most important thing is getting the price right. In 2016, prices are expected to increase nationally 3% year over year. Local price changes are anticipated to be more dramatic. Making the error of going for a price that’s well above the market price is a recipe for being let down and potentially not selling the home at all. A home that sits on the market eventually will turn off buyers, who will suspect that something is wrong with it. Sellers who work with a local realtor to optimize the price of their home based on its unique features and surrounding neighborhood are often able to receive the highest price for their market and sell more quickly.
List during peak season
Unlike buyers, who want to minimize competition, sellers benefit from demand. Price home-buying seasons begins in April and reaches its peak in June, according to Realtor.com analysis of home sales. Sellers who list their home during the prime spring and summer months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings.
Offer incentives
Last year – the best for U.S. home sales in nearly a decade – 37% of all sellers offered incentives to attract buyers. The nature of this market is that you’re going to have more first time buyers, who are more dependent on financing. Getting a loan is one thing; coming up with a chunk of cash for closing costs, on top of the down payment, is another. If you’re a seller and you’re able to offer some money toward closing costs, you’re actually making it easier on that buyer, and they might be more willing to give you the full asking price. You could end up with a faster sale and more profit.
