2014 will still be a seller’s market as prices are not expected to rise as much as last year. Although inventory is improving, it is still about 15% below the normal. This is also great for buyers, because less home owners are distressed causing fewer investors to purchase. Here are a few tips for you, whether you plan on selling, buying, or continuing to own your home in Pasco, Richland, or Kennewick, to take advantage of the housing market.
Rates are forecasted to rise to above the 5% mark in 2014, so waiting for more inventory could possibly hurt you. Working with a local company with ties to appraisers could speed up the process of purchasing a house.
Also you do not want to give a low offer as multiple bids can be common and the seller won’t take yours into consideration if you go to low. Ask your agent what the market looks like in that area and give a credible offer; most offers accepted are about 1% below the asking price.
With home prices rising, so is the equity in your home. This can make it easier to borrow against the property allowing you to pay for overdue repairs or renovations that you have been waiting for, which in turn will add to the value of your home.
With home improvements expected to rise, especially the kitchen and bathroom jobs, it is important to keep resale in mind. Be careful on how big you go with the remodels as the over the top projects costing roughly $110,000 or more usually recoup less than 60% from resale while those moderate ones costing roughly $ 57,500 tend to recoup 69% of the cost in resale.
If you needed, now is also a good time to get a home equity loan as rates have fallen to about 5.1% and it is not expected to get raised by the Federal Government till 2015. Credit Unions are often th best place to get these types of loans.
It’s always a tough decision to know when the best time to list your home is. Keep an eye on the surrounding market and ask your agent for a monthly report on the number of active listings in comparison to the closed listings. When you see a big uptick in the active vs closing listings, you will know prices and sales are getting ready to slow down and it could be the best time for you to list.
When you do list, make sure the asking price is fair. List too high and you may end up waiting much longer until buyers see a price that is reasonable.
Also a good way to possible avoid the headache of a low appraisal is to be there when the appraiser comes by. As the owner, you would be able to point out any improvements and help them understand what has gone on in the home.
Distinctive Properties, Inc.