If you’re planning to sell your house this year, well, you’re in luck.“The 2016 housing market is forecasted to be mainly a seller’s market, filled with
increasing home prices, relatively low inventory, and fierce competition between
buyers,” says Jonathan Smoke, chief economist for realtor.com®.
But you could still make missteps on the way to the bank. Yes, your house
will likely sell, but when? Remember, time is money.
“For sellers, it’s about understanding the ins and outs of their local market
so they can optimize the price of their home and close quickly,” Smoke says.
Smoke and his team analyzed market trends to distill their best advice for homeowners looking to sell in 2016. Follow these tips to
get the most out of your home sale.
Price your home to the market
“What Realtors® tell me over and over again, and from the analysis that I’ve
seen historically, the most important thing is getting the price right,” Smoke
says.
In 2016, prices are expected to increase nationally 3% year over year. Local
price changes are anticipated to be more dramatic, with markets such as
Stockton, CA, and Las Vegas, NV, expected to increase by 10%. But that doesn’t
mean those stats are true of your town, or your neighborhood.
“Making the error of going for a price that’s well above the market price is
a recipe for being let down and potentially not selling the home at all,” he
adds. A home that sits on the market eventually will turn off buyers, who will
suspect that something is wrong with it.
Sellers who work with a local Realtor to optimize the price of their home
based on its unique features and surrounding neighborhood are often able to
receive the highest price for their market and sell more quickly.
List during peak season
Prime home-buying season begins in April and reaches its peak in June, according
to realtor.com analysis of home sales. Sellers who list their home during the
prime spring and summer months benefit from a larger population of buyers and
potential bidding wars, which often result in higher prices and faster
closings.
Offer incentives
This one seems counterintuitive, given what we’ve said about a seller’s
market, but hear us out. Last year—the best for U.S. home sales in nearly a
decade—37% of all sellers offered incentives to attract buyers.
“The nature of this market is that you’re going to have more first-time
buyers, who are more dependent on financing,” Smoke says. Getting a loan is one
thing; coming up with a chunk of cash for closing costs, on top of the down
payment, is another.
“If you’re a seller and you’re able to offer some money toward closing costs,
you’re actually making it easier on that buyer, and they might be more willing
to give you the full asking price,” Smoke explains. You could end up with a
faster sale and more profit.
Best place to sell a home: California
This isn’t really actionable advice since if you don’t already own a home
there you won’t be selling one, but FYI: California markets are accelerating
past the already strong national averages and showing extremely favorable
conditions for sellers.
Robust job growth, increasing prices, and limited inventory have sellers
ready for big gains in the greater metro areas of Stockton, Bakersfield, Fresno, and San Jose. Once you’ve sold, though, you
may not be able to afford to buy again in the area—we’d suggest looking in the
Midwest or South.