Get a head start by listing early. Being early has its benefits: “The early bird catches the worm” or “Early to bed and early to rise makes a man healthy, wealthy, and wise.” You get the idea. So if you’re thinking about listing your home for sale in Alabama or Tennessee, in 2017 — or if you already know you will — why not do so early, as in January or February? By getting in on the real estate market at the beginning of the year, you could benefit in some unexpected ways. Here are six of them.
- There’s low inventory. When inventory’s low, it’s usually a great time to put your house on the market. Your new listing could cause buyers to pounce when there’s little competition, especially if your home is in a desirable neighborhood. Research conducted by Trulia revealed that 2016 was the year of low inventory.
- There’s more urgency. There are plenty of reasons people need to get in a home fast. Many companies transfer employees at the start of a year, for one. Whatever the reason, if you encounter a homebuyer in the dead of winter, they probably need to buy sooner rather than later. And unless you’re in a hot climate, January and February are not the months most people want to be out hitting the streets to browse. Winter buyers often have a sense of urgency — when they find what they’re looking for, they’ll make an offer.
- Spring starts early in warm markets. If your home is in a southern climate, you could really benefit by listing your home for sale early. Real estate websites receive at least double the number of visitors starting the day after Christmas. While homebuyers may not be personally visiting houses as quickly, they will be looking online. I advise that listing a home earlier helps a home stand out in the market. Also, when the weather outside is frightful, Retirees and people in the market for a second home seek a more temperate climate.
- There’s early movement for lower price points. The lower-price-point markets move a little earlier. If you’re a first-time homebuyer and are currently saving in preparation to buy, you might have earmarked that tax refund coming to you for the purpose. When these potential buyers get a refund on their taxes, they’ll sometimes use that as a down payment to roll into a purchase. The sooner you turn in your tax return, the sooner you’ll get your refund, usually in fewer than 21 days.
- There’s a new administration. Speculation and uncertainty abound whenever a new administration takes the helm. If you think the Trump administration will make it tougher for people to buy a home, you might want to sell early in the year. Many people worry that some of the reforms laid out in the Republican platform could potentially force buyers to fork over larger down payments. This could be a problem for many home sellers as the pool of eligible homebuyers begins to shrink. Of course, speculation is just that. But if you believe this to be true, it makes sense to sell a home now.
- There’s a potential interest rate hike coming. Some people are concerned about rising interest rates this year. If homebuyers think rates will rise, they might buy sooner rather than later. The interest rates have been very low for a very long time, as they begin to tick up, you will start to see consumers’ buying power drop because of the cost to cover mortgage payments. It is all an unknown, but there is some thought that rates could continue to rise in 2017 like they have been doing slightly at the end of 2016.
Selling or buying let’s begin 2017 ahead of the game! Call me today and let’s review your options now!
Lynn Kronk ~ Realtor