What do buyers and sellers need to know to be smart about the housing market in 2016?
Realtor.com® released “Top Tips for Home Buyers and Sellers in 2016” to help guide house-hunters and home sellers on what’s most important for buying and selling a home this year. Here’s what they had to say.
Top Tips for Buyers in 2016
- Don’t wait. More than 85 % of buyers who say they plan to buy a home in the next year say they will wait until the spring or summer of 2016, shows a recent realtor.com® survey. But buyers who start their hunt early will likely face less competition and have just as many homes for-sale to consider.
- Shop around for a mortgage. Buyers shouldn’t take the first rate-quote they receive and should talk to more than one lender. A lower interest rate could equate to thousands in savings over the life of the loan. Mortgage rates are largely expected to rise over this year. Realtor.com® is predicting mortgage rates to reach 4.65 % by the end of this year (they’re currently just under 4 percent).
- Don’t discount buying new. New-home construction is expected to surge this year, with an expected 16 percent increase in new home sales year-over-year. Buying new most likely means less competition and a wider selection of homes.
- Don’t underestimate the value of hiring a GREAT Broker or Agent to represent you!
Top Tips for Sellers in 2016
- List during prime-buying season. Realtor.com®’s data shows that the prime home buying season usually begins in April and reaches a peak in June. “Sellers who list their home during the prime spring and summer months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings,” according to realtor.com®’s report.
- Price to sell. Home prices nationwide are expected to rise 3 percent year-over-year. Home sellers would be wise to take their local REALTOR®’s advice to price their home adequately for the market and based on comparables.
- Consider an incentive. Is there something extra a seller could throw in to entice buyers? Sellers who are open to negotiate beyond just price may find more success in hooking a buyer. Thirty-seven percent of all sellers offered some type of an incentive last year.
- Sell in California. The Golden State is being singled out as having the most markets that will likely tilt in sellers’ favor this year. Job growth, rising home prices, and limited inventories are boosting housing markets in the state!
Source: Move Inc.