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Why You Should Sell Your Home in 2019

January 7, 2019 by Kathy Reichle Leave a Comment


Homeowners looking to sell should consider 2019 a prime opportunity to cash in. (Getty Images)

Few people are predicting that 2019 will be a record-breaking year for home prices.

But relatively speaking, 2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t.

“I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years,” Ron says.

Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.

If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game. Here are four reasons to sell your house in 2019.

New buyers are still entering the market. As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. Ron notes the combination of rising mortgage rates and home prices exceeding buyers’ budgets are what has caused the slowing of homebuyer activity in recent months.

But with available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. In a Harris Poll survey of 2,000 U.S. adults commissioned by real estate information company Trulia, more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months. Already, millennials make up the largest share of homebuyers at 36 percent, according to the National Association of Realtors, which released the number in March 2018.

The bottom line: While houses may sit on the market for a few more days on average compared with 2017 when the market was white-hot, buyers remain active and it’s still possible to profit from your home sale.

Interest rates are still low-ish. Mortgage interest rates are rising, reaching 4.87 percent in November for a 30-year, fixed-rate mortgage, per data from Freddie Mac. While rates are at their highest level since February 2011, they remain much lower than the historic high of more than 18 percent in 1981.

It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase.[

Just because the Fed raises rates at one meeting doesn’t mean mortgage rates will follow that exact pattern. “Not every Fed increase is passing on (to) a mortgage rate,” says John Pataky, executive vice president and chief consumer and commercial banking executive at TIAA Bank.

A sudden leap in mortgage interest rates is unlikely in 2019, though Pataky notes that you should be ready to see rates continue to climb. “We do expect over the next 12 months that mortgage rates will continue to drift higher,” he says.

If you’re looking to get the lowest interest rate possible on your next house, try to make a deal sooner rather than later.

You have high equity. Homeowners who bought during the recession or shortly after benefitted from historically low interest rates and, up until around 2015, lower home prices that were still in recovery mode. If you fall into that category, your home equity has risen with nearly every mortgage payment, each renovation you made to the house and all the other houses on the block that sold for a higher price.

The higher your equity in your home, the more you net from the sale, which can easily go toward the down payment on your next house. The larger your down payment, the better you look to lenders and the lower your interest rate will be, and the less likely you’ll need to increase monthly payments with private mortgage insurance.[

Selling in 2019 vs. 2020. If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. In a survey of 100 U.S. real estate experts and economists by real estate information company Zillow, released in May, almost half expect the next recession to occur in 2020. Another 14 percent believe the recession will hold out until 2021, while 24 percent of panelists expect the recession earlier – sometime in 2019.

Whether you believe the recession is imminent or a long way off, current real estate patterns indicate a sudden upswing in activity or prices is unlikely in the near future. Real estate markets tend to operate on a cycle of their own, the length of which varies by market but can be between 10 and 16 years total and flow from a seller’s market to a buyer’s market with a period of balance in between.

“It doesn’t look like there’s anything on the horizon that’s going to cause a big spike in home prices or increase demand dramatically,” Ron says.

By Devon Thorsby, Editor, Real Estate 

Filed Under: Getting Ready To Sell, Issaquah Lifestyle Blog, Mortgage Rates, Selling your home Tagged With: Issaquah Real Estate, Re/Max Integrity, Reichle Real Estate Team, Why you should sell in 2019

Halloween Decorating and Marketing Tips For Selling Your House

October 12, 2018 by Kathy Reichle Leave a Comment

Planning to deck your house out with ghosts and skeletons and every last one of the pumpkins and gourds in your supermarket’s produce department? If you’re also planning to sell your home, you might want to rethink that strategy.

There are mixed opinions on how much to decorate for Halloween—or if you should at all—when selling your home. Can it actually help you sell a home if you turn the holiday into a marketing opportunity? Possibly. We took the temperate of the industry for some guidance.

When should you put up your decorations?

You may want to keep an eye on your neighbors for this one. If you’re the first house on the block to decorate, your home may stand out for the wrong reasons. If you’re still worried that your Halloween décor may distract from the home, follow Mass Realty’s advice. “Overall, you won’t want to put up spooky Halloween decorations until the night of Halloween and make sure to take them down the next morning,” they said. “Instead, it’s alright to put up seasonal decorations, such as pumpkins, bright leaves, or colorful corn cobs. That way, no one gets offended and you can keep them up for weeks to feel the spirit of the season.”

Should you continue your annual spooky theme?

You may be known for your elaborate displays that have a different theme (Friday the 13th, Carrie) each year, but perhaps it’s best to forgo that when trying to sell your home. “If Halloween is your holiday, it is best to take a break this year,” said Shorewest Realtors. “Over decorating will hide your home and turn off potential buyers. Instead think of how you will decorate your new home!”

If you do want to add some Halloween-specific decorations, use common sense. “Experts say keep Halloween decorations neutral,” said Lyst House. “So what Halloween decorations should you avoid? Well for starters…clowns, dead children, blood and gore, and rotten pumpkins.”

Time your listing photos right

Be careful with your listing photos if you do decorate for Halloween. If your home is still for sale come Thanksgiving and Christmas and New Year’s and even Valentine’s Day, your photos will look extremely dated. This will likely turn off buyers, who may wonder what’s wrong with you home because it’s been on the market a while. A good tip is to use spring photos, if possible, said Fortune Builders. “If you can, try to take property photos when the sun is shining and you can take advantage of all the great natural light that spring has to offer. It will help your property stand out in a cold (and gloomy) market.”

Don’t miss a marketing opportunity

“If you must decorate for the holiday, hold a Halloween open house to attract buyers with children or those young at heart,” said Mass Realty. “Set the date for the weekend before the spooky holiday to bring in more potential buyers. Offer homemade cookies and a $10 gift certificate to an ice cream shop for the adult with the best costume who registers at the door. Take photos to compare costumes after the open house. Have your real estate agent contact the winner to pick up the prize, giving the agent time to discuss the home with all who registered.”

Turn it into a party

We love this idea from Opendoor, who threw Halloween Open Houses in three Arizona cities on Halloween night last year. “We greeted trick-or-treaters at three Opendoor houses in Glendale, Gilbert, and in North Central Phoenix,” they said. “We gave out more than 1,000 candy bars…as well as other tasty treats. We had games and activities for the whole family, including a fun real estate trivia game. The big hit, though, was the haunted GIF photo booth to capture the fabulous costumes of our visitors—we had lines at every house! The event was a huge success. We saw more than 1,200 guests across all three homes and, more importantly, we brought our neighbors across the valley together on Halloween night.”

WRITTEN BY JAYMI NACIRI

 

Filed Under: A Positive life, Decorating, Home Decor for Fall, Issaquah Real Estate, Larry and Kathy Reichle, Open House, Selling your home Tagged With: Decorating, Issaquah Real Estate, Open House, Selling your home, Trending Topics

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