It’s fair to say the start of 2022 isn’t the best time to purchase a home. Not only have mortgage rates climbed in recent weeks, but home prices are still sitting at record highs, making them unaffordable for many buyers. Plus, housing inventory is still extremely low, so buyers today don’t have many homes to choose from.
But while it may be a tricky time to buy a home, right now, it’s a great time to sell one. If you’re going to sell your home this year, though, be sure to keep these four pointers in mind.
1. Don’t wait for mortgage rates to get too high
Though mortgage rates are higher right now than they were at any point in 2021, they’re still fairly competitive from a historical perspective. But that could change as the year moves along.
If rates continue to rise, buyers may become more hesitant to purchase homes. Once that happens on a national scale, property values could start to fall. If your goal is to sell your home this year, it pays to get your property listed sooner rather than later.
2. Keep tabs on the competition
It may be the case that there aren’t too many homes for sale in your area right now. But that could change as the year moves along. The more competition you have, the harder it might be to find a buyer — or to find a buyer who’s willing to pay the price you want.
Pay attention to the volume of listings in your neck of the woods, and if you see an uptick, you may want to consider putting your home on the market before the competition increases. At the same time, be mindful of how competing homes are priced. You don’t want your home to be the most expensive listing in the neighborhood unless there’s an obvious reason for it — such as having a notably larger lot or basement when most other homes don’t have one.
3. Invest in repairs over upgrades
You may be tempted to update your home before listing it to attract more buyers. But here’s the thing about updates: Rarely do you get your full investment back. If you spend $15,000 to redo parts of your kitchen, that might result in an extra $10,000 in resale value. But your chances of getting your full $15,000 back are pretty slim.
That’s why you’re better off focusing on home repairs rather than upgrades. If you have leaky faucets, swap them for newer ones that don’t drip constantly. But don’t rip out perfectly good cabinets or countertops if there’s nothing technically wrong with them.
4. Partner up with a real estate agent who knows your neighborhood
Given that buyers have been clamoring for homes, you may be inclined to sell your property yourself rather than work with a real estate agent. That way, you can avoid what could end up being a substantial commission on the sale of your home.
But with mortgage rates climbing, you may want to consider teaming up with a knowledgeable agent who can help you market and price your home appropriately. This is an especially wise move if you notice an uptick in listings where you live. In some cases, a real estate agent might stage and present your home in such a way that you get more money for it — enough to cover some or all of their commission.
Plus, working with an agent could make the process of selling your home less stressful. This especially holds true if you work full time and only have so many hours in your schedule to coordinate showings for potential buyers.
You may end up having a lot of success selling your home in 2022. Or you might encounter challenges as the year progresses. Follow these four tips to increase your chances of a smooth, lucrative sale.
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This article was written by Maurie Backman from The Motley Fool and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to firstname.lastname@example.org.