How Can I Sell My House Faster? And Should I Sell in 2021 or 2022?
Spring is the perfect time to sell your house fast. There’s a buyer around every corner and the Spring of 2021 might be the best time to sell your home in the next few years.
So, here are six reasons you, as a homeowner, should make the decision to sell your house fast or not…
Plus tips to about how to sell a house quickly in this market as smoothly as possible
1. There’s high demand from home buyers
The real estate market is on fire. Home buyers are snapping up homes everywhere. So it’s possible to find a buyer within 24 hours and sell a house fast. Home buyers are willing to pay top dollar for homes, living accommodations, and a house that will meet their needs. Therefore, if you’re a house seller, the competition for home buyers is more intense than it’s been in years.
In fact, according to the wonderful resource, Marketwatch and other sources of real estate information – there are signs that this year could be one where house sellers will see prices rise even higher from last spring’s highs! (Of course, COVID had a bit to do with that.)
2. There aren’t enough homes for sale for all of the potential buyers out there
House buyer demand is so high, and the real estate market is running out of available homes for sale. This house scarcity is due to a few factors, and if it continues to happen for any length of time, it will lead house buyers into a bidding war with one another to find the perfect home they’ve been dreaming about!
Some experts predict that there could be more than double the house demand of just last year alone – which would give sellers even less competition when trying to get their home ready on market day (or days)!
Is it a good time to sell a house 2020?
Now is an excellent opportunity if you’re looking at selling your house fast as well — the best located homes won’t stay unsold very long during these times… like we already covered, there’s a buyer on practical every street corner.
And those who act now can reap big rewards by taking advantage while everyone else has already started getting priced out of the house market.
3. You hold the cards in today’s house market
Many more people are interested in buying a house than selling a house this spring, creating the ultimate sellers’ real estate market because the demand is so high.
Once again, there could be more than double the demand from last year for your home!
So, the key to taking advantage of this opportunity is to be proactive and sell your house fast before prices go down or interest rates increase (or change).
Those who act fast can reap big rewards because they will have better bargaining power with home buyers. There are not enough homes for those looking in today’s competitive environment.
4. It’s a great way to use your home equity
According to CoreLogic’s latest data, as of the third quarter of 2020, the average homeowner gained $17,000 in equity over the past year. The number of house sales won’t stop increasing as long as people keep buying them, causing house prices to skyrocket.
And there are numerous ways to use the money from selling your home, like reinvesting in another house, paying down debt like credit cards or student loans, and investing it another house plus a rental house.
You can also use it to fund your retirement by using the tax benefits of withdrawing from an IRA account early (IRAs are subject to withdrawal starting at age 59½).
5. It’s a chance to find a home that meets your needs
So much has changed over the past year, including what many of us need in a home. Many people have chosen to simplify their lives by downsizing their house. So, every seller becomes a buyer… of better deals.
Or maybe you’re soon heading into retirement and you don’t need so much space. You could buy a smaller home now before you lose your equity and have to work an additional five years to wait for your retirement to rebound.
6. The real estate market might plummet in 2021 or 2022
Of course, nobody can predict the future, and there are many signs that this run on the house market will continue. However, there are just as many signs that it will not and the price of your home could fall. Therefore, like playing blackjack at a casino, it might be the time to lock up your winnings, walk away from the table, and cash in your winnings by selling your house.
Look at it this way.
Real estate prices generally fall twice as fast as they rise
So, if the real estate market continues to increase by 5% per year, after two years, your $500K home would be worth about $550K.
However, if the house market falls, your $500K property might become a $405K property.
The upside is that your house sells $50K more, and the downside is that your house sells for $95K less.
But here’s another aspect of the upside and downside of selling or keeping your property. If house prices go up, that generally signals that the market is doing well. People are keeping their jobs and making more money.
In this case, if you were to sell your house fast, you’d still be able to pay rent or a mortgage on a less expensive house.
However, the converse is also true if the market plummets
You might lose your job and have a hard time making your mortgage payments. At that point, you’ll be trying in desperation to find a buyer and to sell a house fast in a soft real estate market. You could be underwater or, even worse, face a foreclosure on your house.
But if you sell your house fast to a motivated, you can buy a less expensive property or pay rent.
And the rule of thumb is that if you are sure that you’ll remain in your home for the next five years, don’t sell. You’ll probably be able to weather a downturn in the real estate market and be back to today’s price in five years.
If you can’t make sure, seriously consider selling. You don’t want to lose $95K and have to start over on top of that.
Now that you’ve finally decided to sell your home fast, what’s next? Should you start contacting a real estate agents?
What is the answer to “How can I sell my house faster?”
So, here are our top four tips for selling your home and make sure it goes as smoothly as possible…
1. Look for Local Home Buyers When Selling Your Home
Did you know that the plurality of home buyers purchase homes within a one-mile radius of their current home? It’s true. And, shockingly, your typical real estate agent doesn’t know this… some “expert” right?
For the most part, home buyers either need a larger home with more storage space because their family has grown, or they need a smaller home because all of the birds have left the nest. But they don’t want to leave all of their family and friends.
The 1-Mile Rule
So that’s why, as a seller, you want to make sure to have your real estate agent focus your marketing (Google Ads, Facebook Ads, social media marketing, etc.) on a one-mile radius and advertise your home as the perfect fit for someone who, uh… doesn’t want to move very far.
If you’re curious about how our process is different from what a real estate agent does, and how we work with our clients in this situation…
Ask us how our business’ process can make a huge difference for your financial situation! We’ll be happy to help. So, give us a call, email us, hit us up on social media.
2. Complete Minor Renovations and Work on Your Curb Appeal.
It’s the adage, “A little goes a long way.”
If your home is in relatively good shape, like it doesn’t need a new roof or foundation repair, all you need to do is spruce it up a little to turn a curious buyer into an actual buyer.
Put a little work into it and you could significantly increase your price and possibly get an even higher offer than you thought.
You should ask your real estate agent what home buyers want in homes in your area but…
Painting your property gives you the biggest bang for your buck because a fresh coat of paint can make the natural light of your house look better, the paint is cheap, and anyone can paint.
Interesting side note: According to Zillow, houses with a black or charcoal colored front door sell for an average price of $6,271 more than expected! Now, also according to Zillow, the average home value in the United States is $295,300. So, by simply painting your house black or charcoal can increase your sales price by 2.1%. That’s 1/3 of your Realtor fees!
Plus, a fresh coat of paint makes photos of your house that you’ll be posting on Zillow and everywhere else online look so much better!
Spruce up your kitchen and bathroom hardware
You’ll be surprised how switching out all of your handles (and even doorknobs throughout your home) can modernize and revitalize your kitchen and bathrooms. (And maybe even paint your kitchen cabinets while you’re at it.)
Your average buyer way not consciously know what you did but they’ll subconsciously feel what you did versus what other home sellers did not do. And new hardware makes your photos pop.
What sells a house fast? Cleanliness
It might sound simplistic because it is but you’d be surprised how many homeowners don’t take the time to clean their house.
Have your living room and bedroom carpet cleaned and, if it still doesn’t look great, have it replaced. And I can’t tell you how many times people remove carpet and discover beautiful hardwood floor underneath.
Find hidden gems within your house
This really applies to older houses. The older the house (like one you inherited,) the more you need to act like Indiana Jones and conduct a type of archeological excavation.
Homeowners do crazy stuff.
The cover up stained glass… fill in transom doors… get rid of laundry chutes… and hundreds of cool features.
If your home was built in the 1950s or earlier, there’s a good chance there is hardwood underneath. So, pull up a corner and check underneath because hardwood floors significantly increase your property’s value.
With a bit of sanding and some oil, your hardwood flooring could be in immaculate condition and look so freaking good that you might have second thoughts about moving. Oh, and real hardwood floors look amazing in the photos you’ll post online.
Do all of these little things to make the condition of your property better and you will definitely get a higher offer.
3. Research your real estate market and uncover what people want
Even if you are eager to sell your home fast, there is a time and place for everything. Certain times of the year will be more competitive than others, so it’s essential to do your research and determine when the best time is for you.
In general, you’ll get a higher offer in the Spring and Fall in parts of the country that experience all four seasons. But in places like SoCal or Florida, the offer you receive won’t be affected by the weather.
It will also help if, in advance of listing it on the MLS/Zillow or with a real estate agent specializing in selling homes quickly, someone had already checked around about what home buyers want these days (hint: most people are looking for clean open spaces).
4. As a seller, you don’t want to overdo it or underdo it. Like Goldilocks, you want it to be just right.
If you live in a lower-middle-class area, you will choose Formica countertops. But if you live in an affluent area, you might select granite or marble countertops. Your strategy will depend a lot upon your area.
Overdoing it could get you a higher offer but net your less profit but underdoing it will lower the offer.
So, talk to a few agents in your immediate area to get their advice and find out what their home selling strategy is. Plus, you want to find out if these agents have a great track record before they list your home.
Quickly screen real estate agents for advice
BTW, you should always ask potential agents, “I want to sell my house. What area do you focus on?”
If the agent gives you an answer like, “Oh, I can sell a house anywhere in [INSERT YOUR CITY/COUNTY HERE],” then run away as fast as possible!
What you want to hear from an agent is, “I focus on selling homes in [YOUR NEIGHBORHOOD OR ZIP CODE] so I’m confident I can get you the best offer because I know the neighborhood like the back of my hand.”
And don’t tell the agent where your house is until they prove that they sell fast in a tightly focused area and, thusly, get you the best offer.
One of our partners coaches agents and the #1 mistake they make is not focusing on a neighborhood, zip code, or one mile radius. This one change makes a huge difference for their business and, more importantly, you because EXPERTS agents get the best results. And nobody can be an expert agent on many neighborhoods.
However, there is ONE exception to the rule: Rural areas
In general, real estate agents should focus on areas with no more than 40-50K people.
Cities obviously have more people and sometimes even neighborhoods can be too big or populated. For example, our partner has a client that focuses on a 1/3-mile radius of Koreatown in Los Angeles because not only is Los Angeles too big but Koreatown is also the most densely populated area in the country.
That agent is booked solid with dozens of real estate transactions each month.
But if you want to sell a house in Bird City, KS, then there might not be a real estate agents in your area. So, an expert agent in your locale might cover a 50-mile radius.
5. Don’t do major repairs before you sell your house!
This suggestion might seem counter-intuitive, and lot of real estate agents will tell sellers otherwise, but you’re better off selling your home at a discount to an investor and letting them assume the responsibility of fixing everything rather than going through an agent.
Here are four, amongst many, reasons why:
- You’ll have to pay for it out of your pocket. A new roof could cost could cost as steep of a price as $25K, and if you’re selling because you can no longer afford your home, how will you come up with the money to fix it? A new kitchen will set you back 10% of the ARV (After Repair Value) of your home. Do you see my point?
- It could take three months to fix if you hire a contractor (BTW, finding a good, reliable contractor with a stellar track record can be challenging too. We’ve worked with contractors who were great for us at one time, and then the quality just dropped for no reason) and six months or more if you try to DIY. That’s 3-6 monthly mortgage payments. Plus, at least three months more as you sell and close escrow. On a home with a price of $500K, that could be $21K or more. Even worse would be if you have to move before you sell your property. Then you would have double the mortgage payments.
- Sellers are liable for fixing any hazardous problems revealed when you repair your home—taking down popcorn ceiling? You might expose asbestos, especially if your home was built before 1980, and you’ll have to prove that you removed all of it from your home —the same thing with black mold or termites. But if you sell a house fast to an investor, they’ll be responsible.
- To help you sell your property, you have to pay Realtor or agent fees, closing costs, storage unit fees, and more. On average, this adds up to around 10% of the final sales price. So, if you’re selling a home at a price of $500K, you’re only going to walk away with $450K. Home selling to an investor like SunnyNest Homes takes care of those fees and more.
So, how do you determine if you should sell your home fast via the traditional real estate agent process or to an investor like SunnyNest Homes? Here are some suggestions…
If you you don’t need to sell a house fast and your property doesn’t need significant repairs… Sell it the traditional agent route because you will get a higher price.
We recommend hiring a REALTOR over a regular real estate agent. And no matter what you do, NEVER do a “For Sale By Owner”. FSBOs get 25% less than those represented by Realtors or real estate agents. So, would you like to get a 25% higher price or pay a 6% agent commission?
90%+ of the time, they will get their clients much higher price than the amount you save on lower commissions… especially in hot markets like now.
And we also recommend that you hold fast on your home price and don’t succumb to “recommendations” that you lower your home sale price.
Here’s a video of why but basically, REALTORs keep their homes on the real estate market, on average, ten days longer and get a 10% higher price than they get for their client’s home:
So, make sure to have your Realtor price your home and stick with the listing price that they suggested in the beginning.
If you’re in no rush but your home needs significant repairs…
It becomes a more challenging call, but generally, we recommend that if the total for your repairs is less than 10-15% of your ARV, then fix and sell.
If it’s more than that, sell to an investor because the little bit of extra money that you walk away with is probably not worth your time and energy to repair.
If you’re under financial distress…
It’s probably better to get out of the misery as fast as possible.
Even if you sell your home fast to an investor at 70% of ARV, you won’t be walking away with that much less money, but you will save a ton of time and aggravation. Let’s look at an example:
- You have a home that will be worth $500K after it’s all fixed up.
- The average remodel and/or significant repairs take at least three months.
- So you have to make at least $6900 in mortgage payments (sure, you’ll get some of that back after the home sale, but that depends on how much of your mortgage you’ve paid. For this example, WE WILL NOT INCLUDE IT IN THE CALCULATION.)
- The average remodel and/or significant repairs cost 10-15%. So, that’s $50-75K.
- Then you have just shy of 10% in closing costs (agent fees, escrow, etc.) That’s another $50K.
- So, at least $500K – $50K – $50K = $400K and $400K is 80% of of the ARV.
- And you could walk away with only $375K, which is 75% of ARV on the high end.
- And that doesn’t include the value of your time and effort.
- On the other hand, you could sell your home fast to a “cash buyer” investor.
- All investors are cash buyers who will give you a cash offer.
- Walk away with $350K without an agent.
- Let the cash buyer investor take responsibility for everything.
- You won’t have to do any work, spend a dime on a Realtor or agent, or have to meet with home buyers.
Plus, if you contact SunnyNest Homes, we have other non-agent options to sell you home fast…
We can make you a cash offer for MORE than your home’s potential ARV (up to 10% more) if you allow us to pay you over a specified time frame instead of being a cash buyer.
You won’t have to spend a dime but you’ll get full market value.
Yes, you read that correctly… FULL MARKET VALUE!
We’re cash buyers that can make you a cash offer for more than your home WILL BE WORTH when it’s fixed.
Essentially, instead of being cash buyers, you become our “bank”, and we pay you a monthly amount, and you then pay your mortgage company and pocket the difference until we’ve entirely paid you.
Our non-agent selling process is a true WIN-WIN that most real estate investors don’t even know about. You get more than market value and we structure a deal that works for us short-term as we fix up and rent your property.