In real estate, you often hear that timing is everything. Is now a good time to buy? Is now a good time to sell?
Usually, “good timing” is directly related to the strength of the market and can mean slightly different things for buyers and sellers. Good timing for buyers would typically mean a low mortgage rate environment and a greater supply of homes to choose from, which offers more affordable home prices.
Good timing for sellers would mean strong demand from homebuyers and low competition with less houses listed for sale. Additionally, strong house price growth contributes to a seller’s market in that sellers benefit by selling at a higher price and capitalizing on the strong demand of buyers who are taking advantage of today’s low mortgage rates.
With house price growth expected to average 5.5% in 2020, we are leaning towards a seller’s market. But, before packing up your belongings and hanging a ‘For Sale’ sign in the lawn, you should consider how much you could sell your home for.
Here are some ways to get an understanding of what your home could sell for.
Comparable listings, aka “comps,” are homes that recently sold or are listed for sale in your neighborhood (typically within 1 mile) that are similar to your home. To get a true comparable price, you’ll want to look at comps that have similar square footage, lot size, and updates/amenities as your home. It is recommended that you only search for comps within the last three months to get the closest estimated price for your home.
While the housing market is strong, it is important to look at indicators in your state and city specifically. For example, if you live in a city where houses are being built quickly, demand might not be as high as a city where there is less inventory.
Don’t be afraid to ask an agent to provide a proposal for how they would price your home. In fact, getting a competitive market analysis from multiple agents will give you greater insight into your potential list price and their experience, so when it comes time to list your home you will have essentially interviewed multiple professionals. Learn more about how to find an agent and how to work with them to sell your home.
For more information on selling your home, including a step-by-step selling guide, visit My Home by Freddie Mac®.