The reasons such as the limited supply and extremely low mortgage rate are thought to be responsible for an opportunity to profitably sell one’s house these days.
According to the National Association of Realtors (NAR), the median amount a person could have got in December 2020 was the U.S. $309,000, which presents a 12.9 percent increase from the year before.
Some estimates show that the home prices have come to their highest level since 2006.
Given such circumstances, many experts suggest that more homeowners consider selling their property.
Favorable times for selling
Tania Isacoff Friedland, a real estate broker working for Warburg Realty, testified that she has recently taken part in several ‘bigging wars’ in which buyers proved to be particularly willing to pay for certain properties.
Her colleague Michael J. Franco, who works for Compass Real Estate, added that the demand for new houses remained constant throughout the years while the supply plummeted, which made the favorable condition for anyone willing to sell their property.
Yet, if sellers want to use the money they received to buy a new home, they should consider that they would likely have to face adverse circumstances similar to those the buyers of their properties have experienced.
You should do something about your real estate if you want the top dollar
One way for sellers to additionally profit from their homes is to improve the value of their property before selling it.
It is well-established that buyers particularly take care of how the property is presented via photos and other media.
Yet, it is more substantial to add to the value of the home itself.
This endeavor may take two routes.
The first one, in the form of capital improvements, is particularly worthwhile due to its tax-deductibility.
Sellers may also opt for repairs that may cater to the specific needs of certain customers even though they may not add as much value in general.
Sellers might either opt for major improvements of rooms such as bathroom and kitchen or decide to make little modifications such as the installation of new windows or the replacement of exterior doors.
Any improvement may have an additional benefit of making the seller’s stay in his home more comfortable before leaving.
COVID-19 and mortgage rates
Another circumstance that avails potential sellers is a record low level of mortgage rates.
The COVID-19 pandemic has only kept mortgage rates where they ended up after the 2008 economic recession. Since 2008, the rates have remained below 5 percent, and in 2020 they hit the bottom of 3 percent.
NAR predicts that mortgage rates will keep up with this trend and score around 3.1 percent this year.
An executive mortgage banker Melissa Cohn estimates that Democratic victory in the Senate election and the introduction of COVID-19 vaccines are the crucial culprits for the recent spike in mortgage rates.
Yet, she believes that, in the next few months, the economy would not be able to recover as fast as to permit a further increase.