- U.S. home sales rose to 6 million in 2022 with a median price of $400,000.
- Low appraisal value, unexpected repairs/upgrades, negotiations/closing delays, lack of proper marketing, and buyer’s backout can hamper the home selling.
- Hiring an experienced real estate agent and researching local market conditions can help avoid potential hiccups.
- Pre-inspections can reveal any issues upfront, and listing contingencies can help prevent buyers from backing out.
- Proper preparation and awareness of potential hurdles are crucial to selling one’s home stress-free and for the best price.
Selling your home can be daunting, from the preparation phase to closing the deal. Despite the best preparations and planning, some unexpected issues may come up that could delay or scuttle the sale. Here’s the current state of home selling in the U.S., the hiccups you might encounter when selling your home, and how to improve your position.
Current State of Home-Selling
It’s estimated that nearly 6 million homes were sold in 2022. It’s an increase from 2020, when 5.5 million homes were sold. The median price of a home rose 3% over the same period to around $400,000.
Moreover, it’s estimated that there are only about 900,000 homes for sale in the country. This can be problematic as it creates a seller market, meaning buyers have more bargaining power and leverage.
Potential Hiccups When Selling Your Home
When selling your home, a few common issues may arise. Here are some of them:
Low Appraisal Value
A home appraisal is a crucial part of the sales process. It involves a professional appraiser evaluating the value of your property relative to others in the neighborhood. However, the appraisal report sometimes comes back lower than your asking price, significantly hindering a sale. To avoid this, research the local market to ensure your listing price aligns with others in the neighborhood, or be prepared to lower your asking price.
Unforeseen Repairs or Upgrades
Before putting your house on the market, it’s essential to repair minor damages such as chipping paint or leakages. However, sometimes, a home inspector might reveal some unexpected significant repairs that will increase costs. An excellent way to prevent this is to pay for a pre-inspection before listing your home on the market, which can help you reveal significant or minor issues upfront.
Negotiations and Closing Delays
Negotiations and closing can be a tussle for both the sellers and buyers. When your buyers find significant flaws in the house, such as water damage, electrical issues, and the like, they might want concessions on repairs or a lower price. Sometimes the negotiations might lead to extended deadlines, making the closing process challenging and stressful. A solution would be to ensure your house is in good shape and remove any hidden faults before putting it on the market.
Lack of Proper Marketing
Marketing is one of the most critical aspects of selling your home. A little setback in the marketing phase can lead to a lengthy selling process, resulting in a price cut.
Buyer’s Backout
When a buyer decides to back out of the sale, it can directly impact your selling process, especially if there are no other potential buyers. This could lead to your property being on the market longer than expected, affecting its value. One way to avoid this hiccup is to list contingencies for both parties to consider and keep your potential prospects in check.
Proactive Tips to Avoid The Problems Above
Thankfully, there are some ways you can avoid the problems above. Here are some of those tips:
Hire an Agent
It’s always good to have extra help when selling your home. Hiring a reputable real estate agent can give you various opportunities. First, they can help you set the right price for your home. Second, they can use their network to promote and market your property more efficiently. Third, they are experienced in handling negotiations and paperwork that could delay a sale.
Do Your Research
Before listing your house on the market, it’s essential to do some research. Study other houses in your neighborhood and compare prices to get a good idea of what buyers expect in your area. Also, knowing how much repairs may cost or conducting a pre-inspection will give you an edge when negotiating with potential buyers.
Be Prepared
Finally, being prepared is key when selling your home. Having all contracts and documents ready before accepting an offer from any buyer is essential, as this will prevent any delays and help close the deal faster.
Selling a home today can be challenging, but by being aware of the potential hiccups and preparing yourself accordingly, you can increase your chances of selling stress-free and for the best price.
