6 Reasons Why It Makes Sense To Sell a Home Right Now—Before the Spring Rush

Thinking about selling your house in 2024? While many home sellers wait until spring to put their property on the market, there are some distinct advantages to getting ahead of the curve this year and listing sooner rather than later. Generally, the cold weather season causes home sales to be sluggish, but this winter is a bit different. High interest rates kept much of America’s real estate market in a deep freeze for most of 2023. But now that rates have subsided a bit in the new year, there is a whole lot of pent-up demand (and supply) that could burst onto the market at any moment. Some of it is out there already. When selling a home, timing can make a difference: Home prices rise and fall, similar to stocks. Head to market at the peak moment, and you can stack the deck in your favor and reap higher profits and better terms. So, should you list your property now? Read on for some reasons why you might want to be the early bird of the 2024 real estate market. 1. Mortgage rates are falling One of the main reasons home sellers were reluctant to sell in 2023 had to do with mortgage interest rates. In late October, rates for a 30-year fixed mortgage reached a 23-year high of 7.79%. This created a “lock-in” effect: Homeowners felt stuck in their houses since, if those properties sold—and they had to buy a new house—they would have to get a new mortgage at a much higher rate. Indeed, Realtor.com reported that around two-thirds of homeowners had mortgages with an interest rate below 4%. More than 90% had a rate lower than 6%. Yet mortgage rates have recently begun to fall. The Realtor.com 2024 housing forecast anticipates that mortgage rates will continue to decline and settle in the mid-6% range by the end of the year. This, in turn, means home sellers won’t lose out as much by trading in their current mortgage for a new one. “Most sellers, especially those who have lived in their homes for several years, will be able to walk away from a transaction in a good position,” says Realtor.com Chief Economist Danielle Hale. 2. Housing inventory is still low While the market has been stiff, sellers still have one big advantage: Housing inventory is low. “The housing supply is still well under the historical ‘balanced market’ number of six months’ supply,” says Cindy Allen, a real estate agent in the Dallas and Fort Worth, TX, area. “This lack of available homes means a property can still be the center of attention.” A home “can fetch a quick offer if [it is] listed right now, in good condition and at the right price,” she adds. This is especially true for unique or special homes, says Jonathan Spears, Realtor® and founder of Spears Group. “Quality is always in high demand,” he says. In his Florida market, these homes are “selling at the highest frequency they ever have.” Spears also points out that sellers can still take advantage of inflation still being high because most people “can’t go out and build the house that you have at a better price point.” Generally, he says, buyers have to work with the inventory that’s out there. “If I were a homeowner and I had something that’s quality, I would be in the mood to sell,” he says. 3. More buyers may soon enter the market In recent months, high mortgage rates, rising home prices, and inflation have priced many buyers out of the market. But now, with mortgage rates finally dipping, experts predict some of those buyers will come out of hibernation, unleashing their pent-up demand on the few sellers smart enough to be on the market. With more buyers will likely come more homes on the market, which “will inevitably lead to increased competition among sellers,” Allen says. If sellers list now, they might be able to enjoy less competition before other sellers crowd the market. 4. Home sellers won’t have to work as hard Seasonally, experts say the first months of the year can be a great time to sell. Cedric Stewart of Entourage RG of Keller Williams in the Washington, DC, area points out that the beginning of the year can be a surprisingly beneficial time to list. Many people find themselves with extra cash from work bonuses and tax refunds. This could lead to more (and higher) bids. Stewart acknowledges that homeowners who list in the winter months typically won’t get as many offers as those who list in the summer as there aren’t as many people house hunting. Still, he says that those few offers in the cold season could be more meaningful, as sellers might not have to work so hard to get them. “In June, you may get more offers, but there may be four or five other homes that folks are looking at that are similar to yours,” he says. “You may not be the belle of the ball. You may have to make some improvements to be the shining star. Whereas people that need to move in January, you’re probably the only game in town. And so they have to deal with you. Because the reality is, the people who need to move right now, need to move right now.” 5. Sellers who also plan to buy can beat the crowds Another advantage of selling now is that homeowners can both get a good price on their home and move into their next place before the market starts heating up. The best time to move is when there isn’t too much buyer competition, says Stewart. Sellers who get out of their homes now can still enter the market as a buyer “before the prices get spring- and summer-crazy,” he says. Spears agrees, saying conditions can bring about a win-win situation for current homeowners. “We’re coming back to a market where you can still sell at a really reasonable price, and then if you turn around and buy again, you have more options and more negotiating power than you’ve ever had,” says Spears. “And so you get this rare opportunity where you can still potentially sell high and you could buy low.” 6. Personal reasons to sell often trump market uncertainty While timing the market when listing a property can work to a seller’s advantage, homeowners should not be dissuaded from listing if they need to move, whether for a job, change in family size, retirement, or any other reason. “The primary motivation often isn’t just financial. Personal needs matter, too,” Allen says. “Sometimes sellers need to remind themselves why they wanted to move in the first place. If there’s a change in their life, or they need different things out of a home, there are always options to help make a move possible.”   The article 6 Reasons Why It Makes Sense to Sell a Home Right Now - Before the Spring Rush originally appeared on Realtor.com.

How To Downsize Your Home With Absolutely Zero Regrets

A significant shift in your life circumstances often ushers in an era of change. Those who are newly single, empty nesters, or recent retirees often find themselves mulling over the seductive yet stressful idea of downsizing their home. A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller. But there are plenty of factors homebuyers forget to consider when downsizing. We tapped real estate professionals and people who have recently downsized to share their best practices for navigating this daunting and emotional process. BUDGET ALL COSTS AHEAD OF TIME Downsizing, as it turns out, can be pricier than you might expect. “It’s easy to underestimate the cost of moving in the current inflating market,” says Nicholas McMillan, founder and owner of Hire Realty in New York. “To avoid underestimating the cost of downsizing, make a budget that includes all expenses—moving expenses, closing costs, and any renovations or repairs that need to be made to your new home.” On average, the cost of moving within your state will set you back $871 to $2,396. It’s largely determined by how many rooms of furniture you have. Moving out of state costs about $4,700, depending on how far you’re going. MAP OUT YOUR NEW SPACE Don’t assume your current furniture won’t fit in your new, smaller home. Before you take to Facebook Marketplace and start purging your household belongings, pull out a measuring tape and get to work. “Take the time to measure your new space and consider how you’ll use each room,” says Shaun Martin, CEO of We Buy Houses in Denver. “This will help you make informed decisions while selling off or giving away your current furniture, and potentially shopping for furniture, accessories, and organization solutions you may need in your new home.” If you’re struggling to decide what stays and what goes, make three lists: what to keep, what to put in storage, and what to toss. Can’t bear to part with your sectional and your grandmother’s vintage armoire? It might be best to rent a storage unit to give yourself some time. RETHINK HOBBIES IN THE HOME Sure you love gardening, but do you still need a house with a large backyard? Some downsizers decide they’re done with maintaining flower beds and vegetable plants—and that’s A-OK! There are many ways to still do what you love, without participating in the hobby or activity in your home. “If you’re an avid gardener considering moving to an apartment, look into community gardens and similar services in your area,” Martin Orefice, CEO of Rent To Own Labs in Orlando, FL. “Your home gym could just as easily be the fitness center down the road. Your crafting room could move to the local makerspace.” HOLD A FAMILY SHOW AND TELL  Any downsizing will inevitably require a painful purge of stuff, much of which is attached to different stages of your life and people who might not be a part of it anymore. The transition can be made much easier by offering some of these objects to loved ones who you know will give them a beautiful future. “It’s common to worry that letting go of our things means saying goodbye to our history,” says Jami Shapiro, owner of Silver Linings Transitions in Carlsbad, CA. “If you want to share your things with family members, create a list of the most important items and share their story. Host a family show and tell and give items away. Or do it remotely if you can’t gather in person.” Shapiro recommends using it as an opportunity to delve into your family’s history through these objects. “You can make an album of photographs and share the history of each item,” she says. “That can also be a nice way to hang onto their memories, without hanging onto them.” PRIORITIZE AN OPEN-CONCEPT LAYOUT  If you’re slashing your square footage significantly, an open layout can help make the place feel roomier. When searching for a home, Brady Bridges, owner of Reside Real Estate in Fort Worth, TX, recommends prioritizing properties with open floor plans and natural light. “Once you move in, you can create the illusion of more space in small rooms by hanging mirrors—a common tool used by design professionals,” says Bridges. CONSIDER A RADICAL CHANGE There’s nothing wrong with staying close to home when you downsize, but Rick Heggem, owner of WhereMightILive.com, suggests at least considering a move out of town. “Decide if you truly love where you currently live, or only tolerate it,” says Heggem, who downsized and moved with his wife from the San Francisco Bay Area to Washington, DC, in 2020. “When we downsized, we surveyed the entire country, collecting scores of data sets on every county, from crime to weather to natural disasters,” Heggem says. “You will also want to focus on the local culture and politics, your proximity to family, the cost of living, and other priorities.”   This article HOW TO DOWNSIZE YOUR HOME WITH ABSOLUTELY ZERO REGRETS originally appeared on realtor.com.