The upcoming spring real estate season is the perfect time to sell for thousands of homeowners across Greater Philadelphia. In addition to being a “Seller’s Market” in the vast majority of neighborhoods, be sure to consider the following:
New Buyers Are Still Entering the Market
If your home is considered in the entry-level or mid level price range for your city, expect to have interested buyers eager to move quickly.
Millennials will be the largest numbers of first-time homebuyers. Depending on where you live, though, you may see the youngest generation of adults breaking into homeownership as well. Members of Generation Z, (born after 1996) may be looking to purchase as rents have soared and rental requirements often include a 750+ credit score plus first months, last months and a security deposit that could actually be more prohibitive than mortgage requirements and down payments/closing costs when purchasing.
Interest Rates Are Expected to Remain Low
Interest rates are expected to remain low throughout 2020, which will help new buyers obtain financing for their first home purchase. The Fed left interest rates unchanged in December 2019 with the target range of 1.5% to 1.75% and intentions to keep rates steady throughout 2020. Steady and predictable interest rates often mean higher prices for sellers, along with the inventory so low in our Philadelphia media market area, that has never been truer. Low interest rates aren’t just a helpful nudge for would-be buyers to consider your home for purchase. As you look to your next home purchase, you can likely secure a low interest rate as well.
You Have High Equity
If you’ve been in your home for more than a couple years, you’ve been building equity as the property value increases and you make consistent mortgage payments. The more equity you have in your home, the more profit you’ll likely see when you sell the property. That, in turn, can be used for a larger down payment on your next house, other expenses or savings.
Be sure to take into consideration the amount of money it costs to sell your home. For instance, if you are paying 6% commission on a $200,000 home, you will pay $12,000 in real estate commissions but if you list with Everyhome.com, you will save yourself $4000 (our commission would be just $8000) in commissions and not give up any of the outstanding services one should expect from their real estate agent. This translates to a 50% increase in the amount of equity you get to take away from the settlement table.
You will likely need to sell your current home before closing or even putting an offer on a new home. Few sellers will consider a home sale contingency and this competitive market your offer needs to come with as few moving parts as possible. Need a bridge space while you are finding the perfect home? We have some great short term rental partners that will have you wondering if you should ever buy again. Great space with gyms, pools, movie theaters outdoor fire pits and Starbucks every weekday. It is like spending some time at a 5-star resort!
To learn more about the benefits of selling with EveryHome, be sure to visit https://www.everyhome.com/Selling-With-EveryHome/