84% of first-time home sellers regret it. to avoid mistakes
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Timing is everything, especially when it comes to real estate.
But finding the perfect time to sell your home — especially if it’s your first sale — can be challenging as the residential real estate market fluctuates.
A current survey von Zillow notes that 84% of first-time home sellers wish they had done something differently in terms of the timing, pricing, or marketing of the transaction.
Remarkably, 9 out of 10 first-time sellers believe they could have sold their home for more money had they made different choices.
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The results are based on a survey of first-time sellers who have completed their transactions in the past two years. The November survey included more than 2,000 adults.
The real estate market has seen notable changes in recent years, with mortgage rates rising from 3% to over 7%, noted Ted Jenkin, a certified financial planner and CEO and founder of oXYGen Financial in Atlanta. He is a member of CNBC’s Financial Advisor Council.
Recent bank failures have caused mortgage rates to plummet, with average rates for 30-year fixed-rate mortgages falling to 6.57% from a recent peak of 7.05%.
But experts say it’s still a sellers’ market.
“Even in a really strong seller’s market, people still regret it,” said Amanda Pendleton, home trends expert at Zillow. “They question their decisions.”
According to Zillow data, the best time to list a home for sale nationwide to maximize your selling price is the last half of April.
Here are four regrets from recent sellers that homeowners should consider before listing their homes this spring.
1. No successful pricing strategy
To get the best deal for your home, you want to offer it at the cheapest price.
“If you set it at a competitive price, you can sell it a lot quicker,” Jenkin said.
Competitively priced offers that find a buyer are signed within 31 days, according to Zillow data. Meanwhile, other homes can stay on the market for an average of 73 days.
“It speaks to the power of pricing,” Pendleton said.
If you offer it at a competitive price, you can sell it much faster.
TedJenkin
CEO of oXYGen Financial
To find out what your home might be worth on the market right now, look at what comparable homes in your area have sold in the past six months, Jenkin said. A good independent review can also help set expectations.
While most homeowners won’t have to pay capital gains taxes on the transaction, keep in mind that it could be a possibility, Jenkin said. A primary residence exemption is available for the first $250,000 for individuals and $500,000 for married couples.
However, the exemption can only be claimed every two years. Specifically, it also doesn’t apply if you haven’t lived in your home for at least two of the past five years, Jenkin said.
2. Ignoring the curb appeal
To increase the amount of money you get for your home, you may want to make investments that improve first impressions.
New flowers and shrubs and a fresh coat of paint could help potential buyers see themselves in the home, Jenkin suggested. When staging your home, presenting it in the right way can help sell it, he said.
The appeal of online correction is also crucial, especially now that the standards for selling virtual homes have changed since the start of the Covid-19 pandemic, Pendleton said.
Curb appeal is important in getting the right price from the right potential buyer.
dream images | Photo Disc | Getty Images
“People want to be able to tour their homes from the comfort of their living room,” Pendleton said.
Remember that potential buyers can exclude your house from their search just because of a photo.
Homes that get more storage and views on Zillow will have virtual, three-dimensional home tours and interactive floor plans, Pendleton said. Investing in professional and drone photography can also help your listing stand out, she said.
3. Bad timing
Zillow found that a quarter of recent sellers felt their timing was wrong.
But timing the real estate market isn’t a good idea, Pendleton said. People who sold their homes and then rented them in anticipation that house prices would fall are now finding that while prices are a little lower, mortgage rates have skyrocketed.
“It’s so hard to time it,” Pendleton said.
The idea of exiting at the top of the market also means that you are anticipating a crash, which is not included in the experts’ forecasts.
“Our economists just don’t see it,” Pendleton said.
4. Ignoring repairs
About a quarter of recent first-time sellers believe they could have gotten a better price if they had paid more attention to home repairs. However, some improvements could pay off more than others, according to Pendleton.
Massive projects like a kitchen remodel or roof replacement typically don’t yield significant returns, Zillow has found.
Some of the most common projects homeowners complete before listing their home include interior painting, carpet cleaning, and landscaping.
“There’s a good reason for that,” Pendleton said. “These are the projects where you get the most bang for your buck.”
https://www.cnbc.com/2023/03/15/84percent-of-recent-first-time-home-sellers-have-regrets-mistakes-to-avoid.html 84% of first-time home sellers regret it. to avoid mistakes
