Real estate experts have started predicting what the housing market will look like in 2022. Long story short, they expect a strong market for sellers, but the demand won’t be as high as last year’s. The likelihood of a bidding war will be relatively smaller.
Kerry Melcher of Opendoor, an online residential real estate platform, says it would be more like a regular spring season. If you’re in tune with the real estate industry, you’d know that spring is typically the busiest time for the housing market. Melcher states that the number of homes for sale should increase by next year’s spring but still lower than pre-pandemic levels.
President and founder of My State MLS Dawn Pfaff predict the same thing, adding that prices will continue to rise. With the demand possibly declining and prices increasing, should you sell in 2022 or wait it out?
If selling is your only option, keep these pointers in mind:
1. Perform or pay for repairs as early as possible.
Do it as early as possible if you plan to make major upgrades before selling your home. The industry is still experiencing supply chain disruptions and labor shortages. As such, there might not be as many workers available to help upgrade your home.
Choose a lead time with lots of leeway. Anticipate difficulties in procuring building materials and manpower. Most trade professionals today, such as carpenters, plumbers, and electricians, have long backlogs of work, so you’d probably be at the bottom of their list if you availed of their services too late.
2. It’s going to be a seller’s market.
Though the demand won’t be as high, prices will rise and give you an edge over buyers. Hence, 2022 is a good time to sell. Plus, the shortage in housing supply will continue, so you’d likely receive a flock of interested buyers the moment you put up your property on the listings.
To attract offers, ensure that you’ve made all the necessary upgrades. If you’d sell your home as a fixer-upper, disclose all its issues because hiding them may only backfire on you. Besides, it’s not good to take advantage of buyers in a rush. They may need a new home badly, but it doesn’t mean they’d settle for a place that’s close to falling apart. Sell your fixer-upper to buyers willing to pay for renovations.
3. Outdoor amenities will be advantageous.
The pandemic has driven a demand for suburban homes with outdoor amenities. If that’s exactly your home, you can gain an advantage in the market. Homes in Derry, Carlisle, Bradford, Yorkshire and the Humber, and Stirling have affordable housing compared to London. If you live in one of those areas, you might be in luck. You can price your home higher and still expect a decent demand.
4. Mortgage rates may rise.
2020 saw an all-time low in mortgage rates. In 2022, the rates may rise again, making affordability more difficult for first-time buyers.
Fortunately, the remote work setup, which might continue after the pandemic, encourages people to move out of metros in favor of rural or suburban neighborhoods. In addition, technology continues to simplify real estate transactions. If buyers face trouble finding a mortgage loan they can afford, they can get help from mortgage brokers. These professionals are found on the internet now, allowing buyers to acquire a loan with minimal delays and hassles.
As a result, you can rest assured that you won’t run out of interested buyers even if homes become less affordable.
5. Work with a real estate agent.
If you’re selling a home for the first time, you’d need assistance in appraising your home and finding serious buyers. Simply putting up a “For Sale” sign on your front door might not work. Like buyers, you also need security from potentially dishonest buyers. And DIY techniques won’t cut it.
A real estate agent doesn’t just help you sell a home and identify potential issues in sale contracts and negotiate offers. They’re not synonymous with mortgage brokers, who match buyers with lenders. Real estate agents are another professional altogether. They let their clients gain access to a larger pool of buyers or sellers, earning a commission after a sale.
In addition, a real estate agent represents their clients. As such, your buyers can communicate with them if you’re not available. Your agent can take buyers on a tour of your home as long as you consent. Their services will help you ensure that the potential buyers can make a reasonable offer.
Take note of these pointers before you sell your home. Now that it’s clear that 2022 will still be your market, you’re probably thrilled to start selling now. But there’s no need to rush. Put your home on the listings when it’s ready for a new owner.