There are a lot of factors to consider when thinking about selling your home. The state of the market is just one of those factors. Homeowners need to think about the whole picture, including what the home-seeking process will be like and the price they’re likely to receive for their current property. Before calling your real estate agent to put your house on the market, make sure you consider everything. Even though 2024 is a sellers’ market, it may not necessarily be the right time to sell.
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If you’ve been paying attention to financial and real estate news, you may have heard experts claim that 2024 is a sellers’ market. This means housing demand exceeds the available supply, which gives sellers an advantage compared to buyers. Many homeowners are considering selling their current abode to make use of the current market conditions. But a sellers’ market isn’t necessarily enough of a reason to start calling real estate agents.
Homeowners should always look at the bigger picture when they consider putting their property on the market. In addition to market conditions, owners should look at the buying conditions because they’ll need a place to live after they sell their home. The state of their property, available inventory, and interest rates should also be examined.
Your house needs costly repairs.
If your home needs numerous or costly repairs, 2024 probably isn’t the year to sell quite yet. Not only will you have a harder time selling, but you’ll likely need to make price negotiations with potential buyers. This could plummet your sales price, and you could end up getting a lot less for your home than you originally had anticipated.
If you aren’t in a rush to sell, get the necessary repairs done and consider selling in a few years.
You have poor credit.
Poor credit typically impacts the buyer of a house more than the seller. However, you will still need a place to live, and having poor credit will affect your ability to buy or rent your next home. A score of 760 or higher is the most likely to get buyers the best mortgage rates during the purchasing process.
Just because you have a poor credit score doesn’t necessarily mean you’re totally out of luck. Buyers need at least a 620 credit score to qualify for a conventional loan from a bank, but certain Federal Housing Administration (FHA)-backed loans only require a 500 score for approval. That said, a lower credit score will almost always mean you’re paying a lot more in interest.
You’re moving from a low to high interest rate.
Interest rates have swung from low to high since the pandemic started. Rates were at a record low in 2021, at which point they hovered around 2 percent; 2024 started with rates in the high 6 percents. If you purchased your home before the pandemic, you may have had a reasonable rate somewhere between 3 and 5 percent.
If you’re looking to sell your home in 2024 in order to purchase a new home, it’s important to consider the interest rate. It may not make financial sense to take out a mortgage with a rate beyond that which you can reasonably afford.
Many homebuyers justify moving from a low interest rate to a higher one with the idea that they can refinance when rates drop again. In fact, 84 percent of those who took out a mortgage between September 2022 and September 2023 said that they plan to refinance in the future. Market conditions are unpredictable, and no one really knows when or how far rates will drop. Buyers must make sure they can afford their current interest rate for the foreseeable future rather than rely on a lower rate that isn’t guaranteed.
There is a lack of affordable alternatives.
There are a lot of reasons to move — needing more bedrooms, downsizing, living in a better neighborhood, and seeking more outdoor space are just some of the many objectives for homeowners to sell so they can put down roots elsewhere. However, sometimes it doesn’t make financial sense to sell one house and buy another, even if you feel ready to move for personal or familial reasons.
If you can’t find what you’re looking for within your price range, it might be best to hold off on selling your current home.
You may not get the best price for your home.
With limited inventory and historically high prices, sellers have the advantage in today’s housing market. However, it’s worth noting that, according to Forbes, experts predict that 2024 home prices will rise slower compared to recent years. This means you might not get the best price for your property, and waiting for a stronger sellers’ market might be in your best interest.