While it’s true that in a seller’s market homes go quickly no matter what, the the housing market is slowly cooling. So, if you want to get top dollar for your home, home staging is worth the minor investment.
Additionally, if you want your home to stand out and receive the most and highest offers possible. Basically, you want buyers to fall in love with the home.
How does staging capture buyers’ hearts for a successful, top-dollar sale? Read on…
Home Staging is all about presenting the house as a warm, move-in ready home that ideally home buyers can visualize themselves in.
Update your décor with popular, on-trend style. Specifically, updates in living rooms, main bedrooms, and kitchens definitely make a positive impression. If homebuyers can start to see what it would look like to live in that home, they are likely to be more committed. They will also like be more willing to place a high offer. Moreover, if they can see themselves in the home, they are less likely to change their minds last minute or ask for a ton of concessions.
Home Staging is Worth It.
Staging can minimize the negatives and accentuate the positives of a property. Basically, it will help your home make the best impression possible.
These simple updates will help buyers see the home’s unique features and increase the perceived value.
It’s no surprise that a cold, empty property will not get the same attention as one filled with stylish, warm furnishings and accessories. Home staging instantly creates a more inviting room. Additionally, homebuyers can get an idea of what kind of furniture would fit in the space.
Furthermore, you may only have one chance to catch the eye of homebuyers scrolling through hundreds of pictures online. Nearly all—99%—of millennial home buyers start their search online, according to NAR’s data. Even in a hot market, staging a property to look amazing in photos will draw more buyers to see the home in person and even submit an offer.
Lastly, staging is an investment which helps maximize the rate of return on the sale of the property. Cost to stage a vacant home can vary, typically less than or around $5000 and usually less than the first price reduction!
With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price, according to data from the Real Estate Staging Association (RESA).
A recent survey from the International Association of Home Staging Professionals shows that staging helps sell homes three to 30x faster than the non-staged competition. Further, staging can help increase the sale price by up to 20% on average.
For those who decide not to stage, the average price reduction on a home was 5 to 20 times more than what it would have cost to stage the home. Not to mention the higher selling price they probably would have received as well.
All things considered, you can see that there is a strong argument that staging is worth the investment (which in perspective is a small one at that).
If so, you’re not alone. It’s a question we get all the time in similar variations… “Are we in a housing bubble?”, “When is the housing bubble going to pop?”, on and on…
It’s a very valid question, especially for those of us who experienced, painfully, the housing market crash of 2008.
But it’s important to understand what led up to the housing crash of 2008 and what’s different today.
Homeownership has always been a cornerstone of the American Dream. Over 86% of Americans agree homeownership is a key part of the American Dream according to a recent report from the National Association of Realtors (NAR).
Before 1950, less than 50% of families owned their own homes but that soon changed with the GI Bill gave many of the returning veterans from WWII the ability to purchase a home. Since then homeownership moved upwards to 65% and the strong desire for owning your own home has continued to grow, helping home values to appreciate over the years.
As you can see, the only time home values dropped significantly since 1945 was during when the housing bubble of 2006-2008 popped. While some think the sharp increase in prices during 2006 looks very similar to the rise we’ve seen in the past 2 years and thus means a crash is coming, there are differences between the two periods of increases.
In 2006, homebuyers were not truly qualified for the mortgages they were given. Many could not afford to continue paying their mortgages and the market was flooded with foreclosures
⇒ Foreclosures caused a domino effect and banks along with the rest of the economy was in tailspin
⇒ Home values dropped…like off a cliff
⇒ some just walked away from their homes when they realized they owed more than what it was worth
⇒ more foreclosures ⇒ more decline in home values over the next few years.
2 Reasons today’s market is not like the one we experienced 15 years ago…
Prior to 2006, banks were creating artificial demand by lowering the standards needed to qualify for a home loan or refinance their current home – meaning even those with bad credit history, no stable income, etc… “qualified” for a loan. Today, regulations to prevent a repeat of 2006, require much higher standards to qualify for a loan – you really have to show that you’ll be very likely to make your payments.
For the last year or two, the demand for homeownership is a reaction to the recent COVID-19 world-wide pandemic that caused people to re-evaluate the importance of having a home. Lockdowns will do that! Plus remote work seems like it’s staying around to some degree, increasing the options for those who don’t have to live so close to work. It also increases the demand for a home that can double as an office so many people are looking to move out of their smaller, rented apartments onto a bigger house.
When home prices were on a rapid incline in the early 2000s, many thought it would continue as such and so they started to borrow against the equity in their homes to finance college educations, new cars, boats, and you name it. However, when prices started to fall, many of these homeowners owed more than their house was now worth, causing some to just abandon their homes. This led to more foreclosures.
Homeowners haven’t forgotten the lessons of the housing crash even as prices have skyrocketed the last few years. Accessible home equity has more than doubled compared to 2006 ($4.6 trillion to $9.9 trillion) according to Black Knight.
The latest Homeowner Equity Insights report from CoreLogic reveals that the average homeowner gained $55,300 in home equity over the past year alone.
Today’s homeowners will not face an underwater situation even if prices dip slightly. Overall, homeowners today are much more cautious and there are regulations to make sure banks and others don’t get too greedy.
The housing market crash 15 years ago was due to a flood of foreclosures that was fueled by shady mortgage practices. No one wants that to happen again. Therefore, with the increased regulations, stricter mortgage standards and an increasing level of home equity, there is no realistic reason to believe that today’s housing market will crash.
You are not alone. According to Pew Research, the past two years saw the ranks of retirees 55 and older grow by 3.5 million!
Retirement, like other major events in life can have a huge impact on what you need from a home.
Retirement, or even semi-retirement is one of the biggest changes most of us will face in our lives. It’s often a period of time that most of us look forward to… more time to relax, travel, visit loved ones, enjoy hobbies, etc…
As we focus more on these important things in our lives we reconsider what we need from a home as well. Downsizing is typically appealing as the old adage of “Less is More” starts to ring true.
Most people of retirement age, usually those over age 55, choose to sell the homes they raised their children in and move into smaller more manageable homes so they have more time to spend visiting loved ones, traveling and/or doing other hobbies that take them out of the house.
Some may even move out of the area to be closer to loved ones or to an area they’ve always wanted to live in but couldn’t due to work or other restrictions.
Benefits of downsizing are numerous and often appealing to those who are looking forward to spending more time enjoying the precious things of life and less time in the rat race. Some pros of moving into a smaller home include:
The home equity you’ve built up in your existing house can be a huge help if you move. and move. According to the latest Homeowner Equity report from CoreLogic, the average homeowner in the US gained about $55,300 in equity over the last year.
Those equity gains can provide for a larger down payment, meaning smaller monthly mortgage payments which can often translate into more financial freedom. Having the funds from a recent home sale can also help you buy a house in this very competitive market, since offering more money up front helps your offer stand out.
Whatever your future home-owning experience entails, having a caring, knowledgeable realtor on your side can help you find what’s best for you in your current situation.
We, at The C. Taylor Group, can be the realtors you need in whatever stage of life you find yourself in. We understand the changes that occur in life and we want to do everything we can to reduce your stress during the home selling/buying process so that you can spend more time doing what’s important to you and enjoy all that life has to offer.
If you plan to retire soon or have already started enjoying retirement, you may be thinking of how you can adjust your housing requirements accordingly. Meaning now may be the perfect time to downsize. Let’s connect so we can work together to find a home that fits the needs of your current situation.
Those wanting to buy a home wonder if houses will become more affordable soon.
Those thinking about selling wonder when is the best time to sell.
Many thought a rapid slowdown in price appreciation would occur by the end of 2021 and the beginning of this year but as the data shows, that isn’t the case. Prices instead accelerated in December and are still going strong.
To be clear, Acceleration means prices increase at a greater year-over-year rate than the prior month. Deceleration means home prices will continue to rise but at a slower speed than year-over-year appreciation. Depreciation indicates home prices drop below current values but that’s in nobody’s forecast!
S&P’s Case Shiller showed appreciation accelerated in 15 of the 20 metro areas they report on and the Federal Housing Finance Agency (FHFA) revealed that price appreciation accelerated in December in six of the nine regions it tracks.
If you’re a first-time homebuyer or someone looking to sell a house and buy a home that better fits your needs, waiting could cost you in two ways:
Likely for this year and possibly for next, the more time goes by, the more mortgage rates will increase and home prices will continue to go up, possibly making it more difficult for you to afford a home if you’re buying.
If you’re selling, there may be less buyers for your home as affordability decreases with the increase in mortgage rates.
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.” ~ Deputy Chief Economist at Freddie Mac, Len Kiefe
People who have been waiting to sell their house, mostly due to the uncertainty that COVID-19 caused in the economy and our personal lives, are getting ready to put their homes up for sale.
Predictions for home sales in 2022 vary but all agree that they are going to increase as people become more comfortable.
Which means that SOON there will be more homes on the market and thus more competition if you want to sell your home.
Currently, if you own a home, you will likely have several offers from homebuyers struggling to find a home. Multiple offers, bidding wars and going over list price is still a thing.
In the U.S., practically every industry is struggling with supply chain distributions. The housing market is as well.
Right now we are experiencing a lull (hopefully a long lull) of COVID-19 cases and more people are feeling comfortable looking at homes and moving. Other factors that are causing more people to search for homes include:
It is a common trend that more houses come on the market in the late Spring and early Summer as schools wind down and families have more time to prepare for a move. More houses on the market is great news for buyers but as a seller, that means more competition.
So when is the best time to put your house on the market? Now. Why?
So, if you don’t have to wait until Summer or late Spring, now is the best time to sell your home.
Hate the thought of long drawn out showing periods, updating or fixing up your home to get ready for sale?
According to the latest Existing Home Sales Report from The National Association of Realtors (NAR),
If you are thinking of selling your home, you really shouldn’t wait. You as a seller are always on the better end of the deal when demand is high and supply is low. And that’s exactly what the market is like in most metropolitan areas of Colorado right now.
But again things do not stay the same for long.
Remember not only will more existing homes come on the market but more new construction homes will be completed as more time goes by, adding to your competition.
If you have a home to sell, give us a call, send a text or email.
We’d be happy to go over your options with you, see how much your home could sell for right now and get your house listed as soon as possible!