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Why the Housing Market Won’t Crash Like 2008
Many remember the housing crash of 2008, that impacted the lives of countless people. Many now live with the worry that something like that could happen again. But according to Business Insider, although many believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.
Here’s why experts are so confident. For the market (and home prices) to crash, there would have to be too many houses for sale, but the data doesn’t show that’s happening. Right now, there’s an undersupply, not an oversupply like the last time – and that’s true even with the inventory growth we’ve seen this year. The housing supply comes from three main sources:
- Homeowners deciding to sell their houses (existing homes)
- New home construction (newly built homes)
- Distressed properties (foreclosures or short sales)
If we look at these three main sources of inventory, it’s clear this isn’t like 2008.
Existing Homes Inventory
Although the supply of existing (previously owned) homes is up compared to this time last year, it’s still low overall. And while this varies by local market, nationally, the current months’ supply is well below the norm and even further below what we saw during the crash.
To illustrate, consider the months’ supply of homes for sale, which measures how long it would take to sell all the current homes on the market given the current sales pace. A balanced market typically has about a 6-month supply. During the 2008 crash, this number soared well above that, indicating a glut of homes for sale. Today, however, this figure remains well below the 6-month threshold. For example, recent data shows that the months’ supply of homes for sale is around 2.5 to 3 months, which is significantly lower than during the crash period.
If you look at the latest data compared to 2008, we only have about a third of that available inventory today. There just aren’t enough homes available to make values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that’s not the case right now.
Newly Built Homes
People are also talking a lot about what’s going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. Even though new homes make up a larger percentage of the total inventory than the norm, there’s no need for alarm. Here’s why.
Data from the Census shows the number of new houses built over the last 52 years. The overbuilding that happened in the lead-up to the crash is evident. In the early 2000s, builders were constructing homes at a breakneck pace, leading to an oversupply by the time the crash hit. However, since the crash, builders have been much more conservative. The post-crash era saw a significant drop in new construction as builders were wary of repeating past mistakes. For example, from 2009 to 2019, the annual number of new homes built was well below the long-term average.
Builders have been underbuilding consistently since then. There’s just too much of a gap to make up. Builders aren’t overbuilding today, they’re catching up. A recent article from Bankrate says that builders remember the crash all too well, and they’ve been cautious about their pace of construction. The result is an ongoing shortage of homes for sale. Even with the recent increase in construction activity, the pace is still measured and controlled, aimed at meeting demand rather than exceeding it.
Distressed Properties
The last place inventory can come from is distressed properties, including short sales and foreclosures. During the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.
In the lead-up to the 2008 crash, lending practices were notoriously lax. Subprime mortgages were prevalent, and many borrowers received loans they were not financially equipped to handle. This led to a surge in defaults and foreclosures when the market turned.
Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The Dodd-Frank Act, enacted in response to the crisis, imposed stricter regulations on mortgage lending, ensuring that borrowers are more thoroughly vetted. As a result, the quality of loans has improved significantly. For instance, the average credit score of mortgage borrowers today is much higher than it was during the mid-2000s.
As lending standards got tighter and buyers became more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures and the forbearance program helped prevent a repeat of the wave of foreclosures we saw when the market crashed.
While you may see headlines that foreclosure volume is ticking up – remember, that’s only compared to recent years when very few foreclosures happened. We’re still below the normal level we’d see in a typical year. For example, while foreclosure filings have increased compared to the historically low levels during the pandemic, they remain below the average levels seen in the years preceding the pandemic.
Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. As Forbes explains, “As already-high home prices continue trending upward, you may be concerned that we’re in a bubble ready to pop. However, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.”
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), reinforces this view: “We will not have a repeat of the 2008–2012 housing market crash. There are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”
The conditions that led to the 2008 crash simply do not exist today. The housing market, while facing its own set of challenges, is not on the brink of a similar crisis. With a controlled pace of new home construction, tighter lending standards, and a lower overall inventory of homes for sale, the market is fundamentally more stable and resilient. So, while it’s always wise to stay informed and cautious, there’s little reason to fear a repeat of the housing crash of 2008.
If you have real estate questions, I have answers! Karen Daugerdas, Coldwell Banker REALTOR®, 847.494.1102, karen.daugerdas@cbrealty.com
Navigating Today’s Real Estate Market: A Buyer’s Guide
In today’s real estate landscape, buyers face a unique set of challenges. From soaring interest rates to escalating home prices and a notable shortage of available properties, the journey to homeownership can feel like navigating a complex maze. However, with the right approach and guidance, you can successfully navigate these obstacles and secure your dream home. Let’s delve into some key strategies to consider in today’s market.
- Partner with a Real Estate Expert
One of the most crucial steps you can take as a buyer in this market is to enlist the guidance of a seasoned real estate professional, such as myself. An experienced agent, especially with my additional training as a Buyer’s Representative and a Pricing Strategy Advisor, can offer invaluable insights, market knowledge, and negotiation skills to help you make informed decisions and navigate the complexities of the buying process. By relying on my expertise, you can avoid common pitfalls and streamline the journey to homeownership.
- Obtain Mortgage Pre-Approval
Before diving into the house-hunting process, it’s essential to secure a mortgage pre-approval. This step not only provides clarity on the financial side of home buying but also demonstrates to sellers that you are serious and financially capable. With a pre-approval in hand, you can confidently explore properties within your budget and avoid wasted time on homes that may be out of reach.
- Manage Expectations and Prioritize Needs
While every buyer has a vision of their ideal home, it’s essential that you remain flexible and realistic in today’s competitive market. It’s equally important to identify non-negotiables, nice-to-haves, and areas where compromise is possible. With inventory shortages driving up competition, you may need to adjust expectations and prioritize needs to find a suitable property within your budget.
- Avoid Overextending Financially
In the excitement of finding the perfect home, it can be tempting to stretch the budget to secure the property you desire. However, overextending financially can lead to long-term financial strain and potential risk of foreclosure. You need to carefully assess your financial situation, considering not only the mortgage payments but also additional expenses such as taxes, insurance, maintenance, and other financial obligations. Consulting with a real estate agent and mortgage lender can provide clarity on affordability and help you make informed decisions.
- Leverage Professional Guidance
Perhaps the most crucial piece of advice for buyers in today’s market is to lean on professional guidance throughout the home buying process. From navigating paperwork and negotiations to managing inspections and closing procedures, a skilled real estate agent can alleviate stress, save time, and ensure a smooth transaction from start to finish. With my expertise and support, you can navigate the complexities of the market with confidence and achieve your goal of home ownership.
For additional information or advice on your journey to home ownership, contact me at karen.daugerdas@cbrealty.com or call 847.494.1102.
Quitclaim Deed vs. Warranty Deed. What’s the Difference?
Should you have a Quitclaim Deed or Warranty Deed when it comes to your property? What is the difference? While both quitclaim deeds and warranty deeds can be used to transfer property from one person to another, there are differences, risks, and benefits to each, according to Burnett Title.
Quitclaim deeds release an owner’s personal interest in the property without guaranteeing the validity of the title or that there are no liens against it. Quitclaim deeds include less guarantees by the grantor. They are typically used when property is being transferred between family members, for example, and/or when no funds are being exchanged. The risk, of course is that the grantee accepts the property without a guarantee of clear title.
Warranty deeds include a guarantee by the grantor that the grantor has legal title to the property and that there are no claims against it. Warranty deeds are more complex and require more research, since the title must be verified. But they offer the grantee firm assurance that the property is owned free and clear, with no encumbrances against it.
Every state is different and transfer of property is different. Every grantee should consider their needs when they are taking ownership of a property.
From a Burnett Title article by Barbara Pronin
Karen Daugerdas, Coldwell Banker REALTOR ®, 847.494.1102.
Home Equity Loan vs. HELOC: Choosing Your Path
Selling Your Home As-Is: What Does It Really Mean?
In real estate, there is a term called “As Is”, which frequently strikes fear in the heart of buyers. But what exactly does it mean, not only for the buyer, but for the seller as well? Let’s take a look at the option to sell your home, basically, in it’s current condition, and what that means.
When a seller decides to list their homes As Is, it typically means selling it without doing any repairs or updates, even if some repairs are warranted. The seller does not have to guarantee that everything is in good repair or working order. Sometimes this is done because the seller is a family member who may not even have lived in the home or know of underlying conditions. Sometimes, the seller simply does not have the time or the funds to correct any deficiencies.
What this means for buyers is that they are taking on the responsibility of repairs, and the cost of those repairs after the purchase. If they find even more issues after Closing on the property, they are obligated to correct them.
But wait – this doesn’t mean that the seller is off the hook entirely. They still must follow federal and state disclosure standard that mandate the sellers disclose specific information about the property, including the use of lead paint and other potential risks of which they are aware.
An As Is property isn’t always a run-down home with holes in the roof and broken sidewalks. Sellers may choose this classification because of needing to get out of debt, time and other financial constraints, the inability to complete repairs, needing a quick sale or a variety of other reasons.
It can also be a very strategic move in the current real estate market. As Is properties attract investors or buyers who don’t mind putting some “sweat equity” into improving a home, making it a win for both sides.
For buyers, homework is essential, including conducting professional inspections and assessments to uncover any hidden issues that could impact the property’s value or livability. While the prospect of buying this type of home can be intimidating, it can also provide a great payoff for those willing to put in the effort.
The key point is to be informed of all the ramifications of selling or buying an As Is home. For more information or to receive a copy of my Resource List, contact me at Karen Daugerdas, Coldwell Banker Real Estate, karen.daugerdas@cbrealty.com, 847.494.1102.
“Beatlemania Boomers” Could Face a Retirement Crisis
The youngest baby boomers, born in the era that spawned Beatlemania, face a crisis, according to Daniel de Vise at USA Today.
“Late boomers,” those Americans born between 1960 and 1965, have less retirement wealth, and much less retirement savings, than either older boomers or “war babies,” generations born between 1942 and 1959, according to a recent paper from the Center for Retirement Research at Boston College.
Researchers examined different generational groups in the same age range, adjusting for inflation.
After the Great Recession, those age 51 to 56, which was the average “late boomer” had about $280,000 in combined wealth from Social Security, pension benefits and 401(k)-type retirement plans, in inflation-adjusted dollars. The calculation covers households in the middle 20% by wealth.
Earlier generations had more wealth at the same ages. The average “mid boomer,” born between 1954 and 1959, had about $332,000 in total retirement wealth. The average “early boomer,” born between 1948 and 1953, had nearly $346,000.
Blame the Great Recession, the longest economic downturn since World War II, stretching from late 2007 through mid-2009. Home values plummeted, joblessness soared, and the S&P 500 lost more than half of its value.
The downturn hit when late boomers were in their top earning years, their early to late 40s.
“People are really starting to peak in their careers around that time,” said Evan Potash, executive wealth management advisor at TIAA, the financial services company. “They’re making, potentially, the most amount of money they’re going to make.”
The employment rate for late boomers plummeted in the Great Recession years. The share of young boomers who said they were working declined from 98% at age 44 to 77% at age 50, the researchers found.
At 50, most late boomers should have had at least a decade of work ahead of them. Yet, many in that generation never returned to the job market. By age 57, only 61% of late boomers were working.
Anqi Chen, a senior economist at Boston College and co-author of the paper, said “Even for those who did keep their jobs, their earnings were a lot lower.”
Average earnings for the youngest boomers dipped from about $79,000 at age 44 to $69,000 at 47, among households in the middle quintile of wealth.
And their earnings never fully recovered.
By contrast, older generations saw their earnings rise in their mid-40s. At age 47, the average “mid boomer” earned nearly $92,000, roughly one-third more than late boomers.
Retirement savings of the youngest boomers also took a hit in the Great Recession.
In their prime earning years, late boomers saw their retirement funds decline from roughly $31,000 in value at age 47 to $26,500 at age 51, on average.
Late boomers “started out with a lot of 401(k) wealth,” Chen said. “But then, it kind of stopped, and then it dropped.”
The findings come from a paper published in August 2023 under the title, “What Happened to Late Boomers’ Retirement Wealth?” The work tapped two respected surveys, the Health and Retirement Study and the Survey of Consumer Finances. Researchers have since updated the findings with results from the Federal Reserve’s latest Survey of Consumer Finances.
Advocates for older Americans warn that late boomers with inadequate retirement savings could face decades of hardship: In a sense, their troubles are only beginning.
“They have 20, 25, 30 years of lifespan in front of them,” said Josh Hodges, chief customer officer at the National Council on Aging. “We’re still going to be talking about this cohort of individuals in 2035, 2045, 2055.”
With lagging retirement wealth, young boomers may find themselves confined to a lower standard of living in their final years. They may struggle to keep up with mounting health care expenses and with the potentially crippling costs of long-term care. They may outlive their savings. Millennial children may be burdened with their care.
It’s all too easy to blame the boomers for failing to save for their own retirement, Hodges said, when the economic forces of the late 2000s were beyond their control.
“The reality is, people were forced to make financial decisions, put food on the table, a roof over their heads,” he said. “What it comes down to is, these people didn’t do anything wrong.”
Not all late boomers are behind on retirement savings. The average Fidelity 401(k) account for savers ages 60-64 held $227,700 in the fourth quarter of 2023. But the rich inflate that number. The median balance, which ignores outliers, was a more modest $65,300.
Older boomers suffered through the Great Recession, too, along with younger Gen Xers and millennials.
But the 2008 downturn had a deeper effect on the Beatlemania babies, the research suggests.
The oldest boomers were nearing the end of their careers when the Great Recession hit. They were exiting their peak earnings years, nearing retirement, or retired already. Older workers had amassed more retirement savings than late boomers by 2008.
More than 90% of early boomers were still working at age 55. Less than 80% of late boomers held jobs at that age.
The downturn had less impact on younger workers, the researchers said, because it came earlier in their careers. Younger Gen Xers and millennials had not yet reached their peak earning years when the economy tanked: In terms of both earnings and savings, they had less to lose.
While the Great Recession was the main factor depleting the wealth of late boomers, researchers found, that wasn’t the only one.
Part of the wealth gap between late boomers and older Americans draws from demographic differences. Late boomers are less likely than older boomers to be married and to have college degrees, and they are more racially diverse. Black and Hispanic households hold less retirement wealth than white households, the researchers found, but the gap is shrinking.
If you have a senior relative or friend, or if you are a senior, contact me for information & resources on moving on. As a Seniors’ Real Estate Specialist, I’m here to help! Karen Daugerdas, REALTOR®, Senior’s Real Estate Specialist (SRES)®, 847.494.1102.
From “Meet the Beatlemania boomers. They face a looming retirement crisis” by Daniel de Vise, USA TODAY.
Transforming Your Home: Increase Its Value with Smart Improvements
Whether you’re preparing to sell your home or simply looking to enhance your living space, increasing your property’s value is a wise investment. There are several strategic home improvement projects that can yield significant returns. From simple updates to more extensive renovations, here are some tips to elevate your home’s worth, focusing on various aspects of interior and exterior enhancement.
Repaint Interior Walls
A fresh coat of paint can work wonders in rejuvenating the ambiance of your home. Not only does it breathe new life into tired walls, but it also offers an opportunity to update the aesthetic to reflect your current style preferences. According to industry experts, repainting interior walls can increase your home’s value by a noteworthy 107%. So, don’t underestimate the transformative power of a well-chosen paint color.
Spruce Up Your Curb Appeal
First impressions matter, and enhancing your home’s curb appeal is essential for making a memorable impact. Simple tasks such as maintaining a manicured lawn, tending to the garden, and refreshing the exterior with a new paint job can significantly boost the attractiveness of your property. Additionally, addressing any necessary repairs in your vinyl siding or yard fixtures can further elevate the overall appeal of your home.
Repair The Floors
Your floors play a crucial role in defining the look and feel of your interior spaces. If your flooring is showing signs of wear and tear, consider investing in repairs or replacements. Opting for on-trend materials and designs can instantly modernize your home and increase its market value. From DIY-friendly options like peel-and-stick vinyl tiles to more extensive installations, there are solutions available to suit every budget and preference.
Create An Outdoor Living Area
Maximize the potential of your backyard by creating an inviting outdoor living space. Whether it’s adding a deck, patio, or even an outdoor kitchen, these enhancements not only enhance your lifestyle but also increase the appeal and value of your home. With the growing trend of outdoor entertaining, investing in outdoor amenities can be a wise decision that pays off in the long run.
Update Your Appliances
Outdated appliances can detract from the overall appeal of your home and impact its energy efficiency. Consider upgrading to smart appliances equipped with modern technology, which not only enhance functionality but also reduce energy consumption. The sleek appearance of stainless steel or black exteriors adds a contemporary touch to your kitchen, contributing to a more modern and stylish living space.
Remodel The Kitchen
The kitchen is often considered the heart of the home, making it a focal point for potential buyers. While a complete kitchen remodel can be a significant investment, there are various cost-effective upgrades that can yield impressive returns. From updating appliances and fixtures to installing new cabinetry and countertops, even minor renovations can have a substantial impact on your home’s value.
Minor Bathroom Touches
Don’t overlook the potential of your bathroom when it comes to increasing your home’s value. Simple upgrades such as replacing flooring, fixtures, or adding decorative elements like tiles or wallpaper can significantly enhance the appearance and functionality of the space. With minor bathroom remodels offering an average ROI of 70.1%, it’s a worthwhile investment that can pay off handsomely.
Replace Old Windows
Finally, replacing old windows may seem like a minor improvement, but it can have a significant impact on both aesthetics and energy efficiency. New windows not only enhance the exterior appearance of your home but also improve insulation, leading to potential savings on heating and cooling costs. With an impressive ROI of up to 85%, it’s a home improvement project worth considering.
In conclusion, increasing your home’s value is achievable through strategic and well-executed improvement projects. Whether you focus on interior updates like repainting walls and repairing floors, or exterior enhancements such as improving curb appeal and creating outdoor living spaces, each investment contributes to enhancing your home’s overall appeal and marketability. By prioritizing these upgrades, you can transform your home into a more valuable and desirable property for years to come.
Call me for more ideas on adding value to your home! Karen Daugerdas, Coldwell Banker Realty, 847.494.1102,
To Renovate or Not: Options for Sellers
When you bought your house, it was probably cutting edge, but over time, just like fashion, style changes. I’m still hoping polyester comes back, but it probably won’t, so most of your potential buyers are going to look at your house and want to update it.
When It Comes to Doing Renovations There are Three Options and Prices to Present
Option 1: Do No Renovations
Without so much as lifting a hammer or a paintbrush, this is the amount you could list your home for today and sell. Sure, you won’t get as much money, but it’s listed, and it will likely sell in this market and you don’t have to pour time, money, and effort into it.
Option 2: Make Minor Improvements
In this option, you can take 2 or 3 weeks and spend maybe $5000 and make some minor improvements to the home, like a fresh coat of paint throughout, updating fixtures and maybe some new flooring. The house would take a little longer to get listed and sell, but they would net more money from the sale.
Option 3: Overhaul the Home
This is the option where you take 2 to 6 months to do some serious rehabilitation and make a lot of renovations to update the home. It would cost a lot more money, and it would take more time to get it up on the market, but you would be able to sell for a lot more.
The Risks
There are some risks — there’s the time factor. With Option 1, you don’t have to spend any money. You will net less, but it’ll be on the market and probably sold fairly quickly The second price option may be more like a three-to-four-month long scenario where you wind up moving out before it sells, but make a few dollars more. Or, they can spend $$$ and not list for a while during the remodeling time. You would certainly get more money, but it would take a lot longer to get it on the market.
The danger in delaying is – what happens if the market changes in that time? History has proven to us that in real estate, what goes up must come down. We don’t know what’s going to happen this year. You have to decide what your timeline is and what is more important to you. Then we stay informed and keep on top of the market. But first, make a plan. Call me and we’ll get started!
Karen Daugerdas, Coldwell Banker REALTOR®, 847.494.1102.
Resolutions to Make if You Want to Buy a House this Year
While the most popular resolutions aren’t going anywhere, like eating healthy, working out, spending less time in front of a screen, if you’re looking to buy a home next year, at least a few of your resolutions should be of the financial variety.
Start 2024 off on the right foot by making financial resolutions to set yourself up for success and help you get closer to your goal of buying a home. Here are some financial resolutions you should consider making if you want to buy a home in the new year:
Track your Spending
It’s impossible to get a handle on your financial situation if you don’t know what this situation actually is. Which is why your first financial resolution needs to be to track your spending.
Tracking your spending will give you a clear picture of how much money you’re spending, where you’re spending it, and where the opportunities to cut back are.
The key to successfully tracking your spending is to track every single cent you spend. You can create a spreadsheet and manually input every purchase or you can use a money monitoring app like Mint; Mint connects to your debit and credit cards and then tracks and categorizes your purchases throughout the month.
Once you’ve tracked your spending for a month, it’s time to dive into the numbers. How much of your income are you spending on necessities (like living expenses and utilities)? How much is going towards paying down debt? How much are you saving?
It’s only when you have a clear idea of your financial situation that you can determine if you’re ready to buy a home — and, if so, just how much home you can afford without putting yourself in a financially challenging situation.
Cut out Unnecessary Expenses
A great side effect of tracking your spending is that it allows you to see opportunities to cut back. Which leads into resolution #2: cut out any unnecessary expenses.
If you’re serious about buying a home, you need to rein in unnecessary spending and pad your savings account as much as possible. Are you spending a significant amount of money every month eating out at restaurants? Commit to eating out one or two times a month and making meals at home the rest of the time to save some cash. Is your coffee habit costing you $5 a day? Brew a cup in your kitchen before you leave for work. Are you spending a fortune on a gym membership you barely use? Cancel and use free workout videos on YouTube to get your exercise. Do you pay for premium cable when you’d be fine with basic? Downgrade and lower your bill.
Now, keep in mind — even though you’ll want to go into savings mode before you buy a home, that doesn’t mean you shouldn’t spend any money on yourself. If you don’t spend any money on fun and entertainment, it can actually make it harder to stick to your budget. Allot a certain amount of money per month you can use as you please; that “fun money” will make it easier to stick to your budget the rest of the time.
The more unnecessary expenses you cut out of your budget, the more you’ll have to put in your savings account — and the faster you’ll be able to make your dream of owning a home a reality.
Clean up Your Credit
Another financial resolution to make if you want to buy a home? Clean up your credit.
Your credit score plays a huge part in determining if you get a mortgage and, if so, how competitive your interest rates. A good credit score can save you thousands (even tens of thousands) of dollars over the course of your loan, which is why it’s important to get it as high as possible before you purchase a home.
First, you’ll want to get a copy of your credit report and check for any errors. Errors are more common than you’d think, and even a small mistake can drag down your score. If you find an error on your report, you’ll need to contact the credit bureaus to have it removed.
Once your report is error free, it’s time to do everything you can to boost your credit score. Paying down debt, paying all your bills on time, and keeping the percentage of credit used low can all help to increase your score — which will help you get a better deal on your mortgage when you apply.
There are plenty of resolutions you can make in order to hit your goals in the new year. But if your goal is to buy a house, these financial resolutions are the key to getting there.
Call me & we’ll create a plan for you! Karen Daugerdas, Coldwell Banker Real Estate Broker, 847.494.1102.
10 Reasons to Sell your Home during the Holiday Season
When most people think about the holidays, they think about spending time with family, exchanging gifts, and enjoying a delicious feast. What many people don’t think about is using the holiday season as an opportunity to sell their house. Despite what you may have heard, there are many great reasons to sell during the holidays.
Yes, the interest rates have increased over the last year, but better in the last 60 days. For every 1% decrease, there are 5 million more buyers hitting the market.
Based on what’s been happening the last few years and the trends we are seeing right now, we can’t start stressing about what may or may not happen, we can only make a decision based on today. Every indicator tells us that selling during the holidays will net you more on your home than you would if you wait until Spring.
- Buyers who are out searching for a home during the holiday season are more serious. They are willing to fight holiday traffic, tight schedules, & even icy conditions in some areas – they mean business.
- Less competition. There are fewer homes for sale during the holidays, which means that there is a greater chance of selling quickly, & even getting multiple offers.
- Houses show beautifully when decorated for the holidays, when staged well. Buyers coming through will instantly start imagining themselves spending the holidays in your home & making memories with their families.
- Emotion: Buyers are emotional by nature & even more connected to their emotions during the holidays when they are desperate to buy. Viewing homes now, especially the decorated ones, brings memories, creates sentimentality & nostalgia. This makes the buyers pay the asking price & even more because of the heartwarming emotions around home ownership & celebrating the holidays.
- Buyers tend to have more time off, using end-of-year vacation days & free time during the holidays, which means they can look during the work week rather than be limited to the weekends. When people have more free time, they are less stressed, & when they are less stressed, they are willing to spend more.
- There are tax benefits to buying & selling a home before the end of the year. From various mortgage deductions, you can also take advantage of State & Local tax deductions, tax-free profits on the sale of your home, & even home office deductions for those who work remotely.
- January is the most common time of the year for people to start new jobs after being transferred, & typically get notice of this transfer in November or December. These buyers have no time to waste, they have a short time frame.
- YOU are still in control of your time. Even when you have your home listed for sale, you control showing times to work around your holiday events & life.
- Make your moving dates part of your terms. Even if you get an offer, you can have a delayed Closing or extended occupancy to accommodate you into the new year.
- Give yourself your best chance at non-contingency. Selling your home now allows you to be a non-contingent buyer in the Spring when most people choose to list their homes, which means you will have a lot of homes to choose from. This gives you your best chance to sell high & buy low!
If you need any help getting started, be sure to contact me for the plan to get your home sold quickly & for top dollar! Karen Daugerdas, Coldwell Banker REALTOR®, PSA®, SRES, SFR®.
