The closing process in a real estate transaction finalizes the terms of an agreement between the buyer and seller, leading to the transfer of the property’s title. This step of the buying/selling process comes with its own set of costs. Before a buyer can hold the keys to their new home, and before a seller can celebrate the sale of their property, closing costs must be paid.
What are closing costs?
The term “closing costs” refers to the various expenses, taxes, and fees paid by both the buyer and the seller to finalize a real estate transaction. The purchase agreement—signed by both parties—will dictate the terms of how the closing costs are paid, but there are some standards about who pays what.
In general, buyers can expect to pay about 2-5% of the total purchase price in closing costs, while sellers’ costs can range anywhere from about 6-10%; the difference being that buyers are using extra cash to pay for their closing costs while the amount sellers owe is typically deducted from the proceeds of the sale of their home. Note—these percentages may vary depending on property taxes, insurance rates, and other factors involved in the transaction.
Closing Costs for Buyers
Typical mortgage-related closing costs for buyers include an application fee, an underwriting fee, and prepaid interest (the accrued interest cost between your settlement date and first monthly payment). If you make less that a 20% down payment on the home, you can expect to pay your lender for private mortgage insurance (PMI), as well.
Two main property-related closing costs for buyers are the appraisal and the home inspection. Lenders will require an appraisal to double-check that the value of the property matches your mortgage loan amount, which will typically cost you a few hundred dollars. A home inspection provides the buyer with a clear understanding of the home’s condition and what repairs need to be made, either in the future or before closing. In competitive markets (a seller’s market), it’s more common for sellers to conduct pre-listing inspections and for buyers to waive the inspection contingency to make their offer more appealing. Buyers will also pay a variety of title, insurance, attorney, escrow, and property tax fees to finalize the home purchase. Usually, your lender will require you to purchase homeowners insurance before settlement to protect against insured disasters that may occur on the property.
These are just some of the costs inherent in the closing process for buyers, which are a fraction of the total costs of buying a home. Working with a Buyer’s Agent will help you stay organized as you navigate through these crucial final steps of your home purchase.
The seller will pay the agent commissions on the sale, typically to both the buyer’s agent and the listing agent. Agent commissions usually come in at around 4-6% of the sale price of the home. Other closing costs for sellers may include attorney fees, title insurance, a transfer tax, and the home’s property taxes for the current year if they have not yet been paid. The terms of the agreement will spell out what the seller is additionally responsible for, including HOA fees if applicable and any escrow money promised to the buyer.
Typically, escrow fees are shared between the buyer and seller, which cover the costs of distributing the funds involved in the transaction. In buyer’s markets, it’s more common for sellers to agree to pay for a portion of the closing costs—what is known as “seller concessions.” A common example of a seller concession is when the seller agrees to pay for repairs discovered during the buyer’s home inspection.
So, whether you’re buying or selling a home, it’s important to remember that a series of fees and payments must be completed to finalize the transaction.
Low temperatures and record-low inventory combined last month to create the typical winter slowdown in home sales. But with demand unlikely to dip anytime soon, competition for available units remains fierce. Find our full market recap here.
News + trends.
WINDERMERE INSIGHTS
How homebuyers can find success in 2022
The W Report reached out to a few local Windermere leaders to see what it will take for buyers to successfully compete in this year’s market. READ MORE
[THE STATE OF] REAL ESTATE
Seattle/Bellevue among this year’s 10 hottest real estate markets
Our region will see strong housing demand in 2022. With lots of available jobs and flexible work options, buyers want to settle here.
Here in the PNW, we’re no strangers to rain — but that doesn’t mean we don’t miss the sunshine. For a little extra brightness and a reason to keep looking up, take a peek through these Soaring Skylights.
Cast your vote.
WHITE KITCHENS
Are they in or out? Click below to vote.
YES! I can’t get enough of white kitchens and would remodel now if I could.
NEVER! No thank you, I’ll stick to extra warmth and color in my life.
For the Windermere Foundation, 2021 was a year of milestones. Windermere owners, staff, and agents stepped up to support their communities in a variety of ways. Their collective efforts helped to raise over $2.5 million in 2021 for low-income and homeless families, bringing the Foundation’s grand total to over $45 million in donations since 1989.
Windermere Foundation 2021 Year in Review
Early 2021
The year got off to a quick start. Windermere offices showed an outpouring of support in their communities, raising nearly $500,000 by the end of March. The Windermere Lane County office in Eugene, Oregon was highly active, raising money for a host of local organizations dedicated to supporting local children who are in crisis due to neglect, abuse, poverty, or homelessness. The office also collected donations for Florence Food Share and Food for Lane County, two local non-profits working to solve hunger issues in the community. All in all, the Lane County office’s donations totaled over $10,000.
Community Service Day
In June, Windermere celebrated its 37th annual Community Service Day, a tradition since 1984 in which our agents, staff, and franchise owners spend the day volunteering in their communities to complete neighborhood improvement projects. The Windermere Pinole and Diablo Realty offices joined together to support the Food Bank of Contra Costa & Solano by working in their warehouse to help bag produce. The offices were able to gather $2,850 in donations, which empowered The Food Bank to deliver 5,700 meals to the local community. The Park City office also made an impact with a local food health organization, EATS Park City, by donating $5,000 to help EATS in their mission to promote nutrition advocacy in the area.
These are just a couple examples of the impact last year’s Community Service Day had throughout the Windermere footprint. By the end of June, the Foundation surpassed $1 million in donations for 2021.
Pictured: Scott Tuffnell, Denise Ramirez, Mike Rowland, Renee Rowland, Diane Cockrell, Mona Logasa, Dave Nardi, Ellen Osmundson, Jim Georgantes, Tina Rowland, Jacob Cardinale, Nicolars Ramirez, Luis Ramirez-Agudelo, George Gross, John Kula, Carol Nasser, Neil Zarchin (Food Drive Administrator – Food Bank of Contra Costa and Solano) – Image Source: Windermere Rowland Realty – California
Late 2021
Windermere agents, staff, and owners continued to give back to their communities through the summer and fall, eventually passing $1.5 million raised in 2021 by September’s end. Here are a few highlights from the final months of the year.
UW Certificate Scholarship Program
The UW Certificate Scholarship program is part of Windermere’s commitment to better serve and support students of color, especially Black and Hispanic students, who have been impacted by systemic racial inequities. Since it was introduced in 2019, the scholarship program has given a total of $41,000 to scholars to date.
Gina, a 2021 scholar, was able to complete the UW Certificate in Data Visualization with her scholarship from Windermere. Originally from Colombia, Gina moved to the U.S. ten years ago. She eventually found work as a nanny but was laid off in the early days of the COVID-19 pandemic. Gina knew she needed to find a stable career to help support her family and wanted to put her data visualization skills to work. Gina was hired as an Attendance Specialist with her local school district. “Now, you may wonder how an Attendance Specialist can contribute if she has data visualization skills,” she said. “I was a little skeptical at first, but as I started learning more about data, I started connecting the dots. I started collecting data on the reason why the students were not making it to classes and tracking down the kids that needed extra attention.” Gina began making weekly analyses and data visualizations for her team and was soon helping the district connect with students they hadn’t been able to reach for six months. “I can’t thank you enough for this great opportunity,” she said of the UW Certificate Scholarship. “I have helped my community, grown as a professional, and feel empowered as a mom and as a brown woman.”
The Windermere Foundation plans to expand the UW Certificate Scholarship program in the future to help more Black, Indigenous, or People of Color (BIPOC) adult learners.
2021 UW Certificate Scholar Gina (top left) with her family. Image Source: Gina / Jo Gubas—University of Washington
Windermere Sand Point / Lake Oswego West / Fort Collins /
The following Windermere offices didn’t let up in their community efforts during the final weeks of 2021. Windermere Sand Point looked no further than their local elementary school, Sand Point Elementary, when deciding how they could make an impact during the holiday season. The Sand Point office donated $3,000 to the school, which will help to provide low-income students and their families with clothing, shoes, food assistance, and payment aid for after school activities.
The Windermere Lake Oswego West office makes it a point to support Transition Projects annually in any way they can. Transition Projects engages with the local homeless population to support them on their journey out of homelessness while delivering lifesaving and life-changing assistance. In early December, the Lake Oswego West office donated $3,500 to Transition Projects.
Windermere Fort Collins has close ties to ChildSafe Colorado, a local organization that provides therapy for victims of childhood abuse. One of their agents had a personal experience with ChildSafe and couldn’t thank them enough for all they did for their family. The office has rallied to support the organization, as they are unable to provide their services without donations. The Northern Colorado office hosted a tailgate party fundraiser, collecting donations from agents and the public. All in all, they were able to donate $4,000 to ChildSafe in November.
Pictured L to R: Suzanne Ekeler, Eric Thompson – Image Source: Natalie Parsons, Windermere Fort Collins
All furniture has a shelf life, and your mattress is no different. Whether you sleep on a spring or memory foam mattress, the more proactive you can be about maintaining it, the better your chances of experiencing healthy, regular sleep. With a few simple tasks you can extend the life of your mattress and wake up every day feeling refreshed.
Extend the Life of Your Mattress
1. Clean Your Mattress Regularly
A clean mattress is the key to healthy sleep. Clean your mattress regularly according to the manufacturer’s instructions. Certain home cleaning supplies such as baking soda and essential oils can help to cleanse your mattress’s fabric, but they may be harmful to certain foam types. Vacuum before you clean to rid your mattress of dust and dirt using the attachment designed for cleaning upholstery. If your pets like to snuggle up in bed, you can count on their hair and fur getting trapped in your linens, so you may want to consider vacuuming more frequently to make sure everyone can sleep soundly.
2. Rotate Every Six Months
After laying in the same spot night after night, your mattress will begin to form to your body. Rotating your mattress every three-to-six months will give it a chance to refresh its structure and provide additional support. By simply flipping the foot end of the bed around to where you lay your head, it will feel like you’ve bought a brand-new mattress.
Image Source: Shutterstock – Image Credit: New Africa
3. Use a Mattress Protector
Mattress protectors help to keep your bed as clean as possible by limiting damage caused by spills while keeping dust mites, sweat, dander, and pet hair/fur off your mattress. Made from organic cotton, organic mattress protectors are typically hypoallergenic and waterproof. They are helpful sleep aids for people with sensitivities to allergens and chemicals.
4. Support Your Mattress
Not properly supporting your mattress is a recipe for unhealthy sleep and a short lifespan for your bed. Check the manufacturer’s instructions to see if your mattress is meant to be coupled with a box spring, and if not, what kind of underneath support is required, given your mattress’s type and weight. Insufficient support can not only damage your bed but can also lead to physical complications such as soreness and back pain.
5. Handle Your Mattress with Care When Moving
During the moving process, the bed is often the center of attention. Large and clumsy, mattresses can be frustrating to maneuver from your bedroom to a moving vehicle. Fabric can easily be torn when navigating around corners, up and down stairs, through hallways, and sometimes even out of windows. Always work with a partner when moving your mattress or let the professionals handle it if you’re hiring a moving company. If you’re too hasty about getting it moved, you can easily damage it to the point where you’ll need to make a replacement.
The region’s supply of homes remains low, even with a seasonal market slowdown. Prices have begun to level off in Seattle, while the Eastside continues to see strong appreciation.
Even with new work-from-home options, traffic congestion is increasing throughout the state. Use of public transit is down, and carpools are harder to coordinate.
Sometimes a little holiday spirit goes a long way. We’ve found some creative decor ideas to enjoy the winter season without all the holiday gaudiness. From elegant firs and rustic place settings to frosty color palettes, here are some Winter Wonderlands you can admire until spring.
ARCHI [TECH]
Seattle’s NFT Museum Displays Digital Art in a Physical Space
The new NFT Museum aims to make digital art more accessible to audiences, while educating the public about cypto art. Visitors to the new Belltown space can experience this digital art form in a shared community setting.
Brighten up these dark winter days with a festive outing. We’ve rounded up some of the best free holiday light displays around Seattle and the Eastside to help you celebrate the season.
Moving is stressful, whether it is across town or cross-country. Once you have closed on your house, the reality of packing, moving, and setting up a new home can become overwhelming. While no list can make a move “stress-free,” planning ahead and staying organized can help make your move a little smoother. Here is our list of tips:
Getting Started
Once you know your prospective move date set up a quick timeline to make sure you can get all the important tasks done and ready in time for your move.
Consider how much stuff you have by doing a home inventory. This can help you decide whether you need to hire movers to help you or if you will be managing your move on your own. Many moving companies supply inventory lists to help you assess the size of truck you will need. You can use your list as double duty for insurance purposes later.
As soon as you decide how you will be moving, make your reservations. In general, moving companies and truck rental services are over-booked at the beginning and very end of the month. If you are planning on hiring a moving company, contact a few in your area for a price quote. To find companies ask your real estate agent, family, or friends, and consult online reviews. It is also a good idea to request a quote and compare companies.
Preparing for Your Move
Moving is a great opportunity to get rid of clutter, junk, or outdated items. Set aside some time to sort through your closets, storage spaces, files, drawers, and more. Go through cluttered areas and organize items by “keepers”, “give-aways” and “garbage”. You will have less to pack and an opportunity to update after you move. Contact a local nonprofit organization for your donations; some will arrange to pick up larger donations like furniture. If you have items of value, eBay or craigslist are good options.
Changing your address is one of the more tedious tasks in the moving process. You will need to change your address with the United States Post Office. You can find the online form here: Movers Guide.
You will also need to change your address with each account you have. Here is a list to get your started:
Before you start packing, it may help to visualize where everything you have will go. Perhaps furniture will fit better in a different room? Consider the floor plan of your new home and figure out what will go where. This will aid in packing and labeling as you box everything up.
Use a tool like floorplanner.com to plan where furniture and items will go.
When it comes to packing you have some options. You can work with a service that provides reusable boxes for moving or you can reuse or purchase cardboard boxes. Make sure you have enough boxes, packing tape, dark markers, and packing paper.
Pack rooms according to your floor plan. Label boxes with contents and room. This will make it easier to unpack your home, knowing where everything is going.
Real Simple magazine has some great tips on packing for your move.
If you have to disassemble any of your furniture, make sure you keep all the parts and directions together. Make sure you set aside your necessities for the day you move. Being tired and unable to take a shower or make your bed can be hard at the end of a long moving day. Here are some ideas of what you may like to pack in your “day-of-move” boxes:
Clean linens for the beds, pillows and blankets
Clean towels
Shower curtain, liner and hooks
Toiletries, hand soap, tooth brush, etc.
Disposable utensils, cups, napkins, etc
Rolls of toilet paper
Snacks and water
Change of clothes
Tools for reassembling furniture, installing hardware, and hanging photos
Making Your Move
Come up with a game plan with your family, so everyone has a role and a part to play
Once the house is empty, do a once over on your old place to make sure it is clean for the next owners/occupants. Here is a useful checklist for cleaning.
Warming Your New Home
Once you have settled into your new home, warm it up by inviting friends and family over to celebrate. Here is a great infographic about housewarming traditions and symbolism. Announce your move to far-away friends and family through moving announcements to make sure you stay on the holiday card mailing list.
The dining room is a place of gathering, comfort, and community. Creating the right mood in the space is a matter of choices in décor and design. For example, a traditional dining room creates a heartwarming tone whereas a modern one feels minimalist and light. Homeowners can often feel puzzled when trying to upgrade their dining room, since it typically isn’t as simple as buying new appliances or green-lighting a remodeling project. Here are some simple ideas to help you upgrade your dining room and achieve the atmosphere you’re looking for.
How to Upgrade Your Dining Room
Lighting
A light fixture is often the centerpiece of a dining room. Your choice in lighting can greatly reinforce the dining room theme you’re going for, so look for fixtures that reinforce the other elements of the space. A chandelier will add a formal touch to the room, while more modern fixtures like pendant and warehouse lights can deliver a sense of chic sophistication. If you plan to hang a chandelier, keep in mind that the bottom of the fixture should hang roughly three feet above the dining room table. If you have vaulted ceilings, it should hang even higher.
Flooring
A full dining room upgrade happens from the ground up. If your flooring is outdated or showing signs of wear and tear, it’s the perfect time to add a flooring upgrade to your project list. Choosing the right flooring is a matter of identifying what material will work best in the space, assessing your budget, and forming a plan for installation. Materials like vinyl, ceramic tile, and hardwood are popular options, not only for their durability, but also because they’re easy to clean. Other niche options like cork or concrete can help create a specific ambience but may not be as widely available. Once you’ve decided on your material, talk to local contractors to compare installation quotes. There are pros and cons to installing flooring on your own or hiring a professional; know what they are before making a final decision.
When it comes down to it, the essential function of your dining room is to provide a setting for enjoying a meal. Together with your main lighting fixture, your table and chairs help to form the focal point of the room. Size is a critical component of your dining room table. There’s a Goldilocks dynamic with dining room tables. The larger the table, the more room everyone has, but the more space it takes up. Make sure to take exact measurements before shopping around so you know exactly what size you’re looking for.
Your chairs will reinforce the look and feel of your table. Consider balancing wood grains and matching colors. For example, if your dining room table is designed with intricate wood grain, look at chair sets with simple colors and designs to bring balance to the room. When it comes to the height of the seats, arms, and back, choose dimensions that suit the dining experience you’re looking to create. Generally, high-backed, narrower chairs create a more formal atmosphere than their rounded, modern counterparts. Either way, choose the combination that looks best to you and feels most comfortable.
A fresh coat of paint can take a dining room from stale to lively in a hurry. If you’re thinking about painting your dining room, think about how the color scheme would complement and/or contrast with the colors elsewhere in your home. A contrasting color will help differentiate the space, while a complimenting color will help to tie things together. New color in the dining room doesn’t have to come exclusively from painting a wall. Colored furniture pieces, decorative throw pillows, placemats, and table décor can help liven the space as well. Curtains and drapes can add a splash of color while softening the room, and when paired together with a decorative rug, can make your colors pop at different eye levels.
As we come to the end of the year, the housing market has slowed a bit in the traditional winter slump. However, for sellers wanting to list ahead of the holidays, low inventory still gives them the advantage.
Windermere’s Chief Economist Matthew Gardner applies his insight to the state of the economy and housing market to forecast trends and conditions for the year ahead.
Windermere’s Chief Economist Matthew Gardner uses current data to forecast national trends in economic activity, including job recovery and inflation, for the year to come.
With the holiday season upon us, it’s time to get ready to host friends and family for a variety of celebrations. We’ve created this Pinterest board featuring Homes for Hosting to inspire you to get in the mood for entertaining, despite the cleanup afterwards.
ARCHI [TECH]
A Decommissioned 747 Will Feature in a New High Rise Development
A new mixed-use development in Seattle will include an eye-catching 747 in its design. The decommissioned plane will eventually be home to office space and occasional public exhibits, while providing a new landmark in the city.
Shorter days don’t have to keep you cooped up at home. We’ve rounded up three creative events to engage your artistic side while you spend time with loved ones this season.
This video is the latest in our Monday with Matthew series with Windermere Chief Economist Matthew Gardner. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market.
Hello there! I’m Windermere Real Estate’s Chief Economist, Matthew Gardner, and welcome to the latest episode of Mondays with Matthew.
Before I get started, I wanted to let you know that this will be the final episode of Monday with Matthew for 2021 as I’m going to be taking Christmas off. So it’s time to offer you my forecasts for the U.S. economy and the country’s housing market in 2022.
Although many people – including myself – had hoped that COVID-19 would have become a somewhat distant memory by now, and that the economy would have recovered this was – sadly – not to be the case, and the pandemic’s influence on the economy is still being felt and all the datasets I track tell me that, although we are certainly healing, COVID continues to act as a drag on economic growth and I expect that to continue through the spring of next year – if not a little longer.
Economic Recovery & Growth
And it’s because of this that I – along with many other economists – have spent the last few months lowering our forecasts for economic growth – at least through the middle of 2022. So, let’s look at this a little closer.
Here is my forecast for economic growth through the end of next year and you will note that, even though I am cautious in regard to the economy as we move through the winter and into 2022, I am still expecting to see a fairly decent bounce back in the fourth quarter of this year following the very disappointing rate that we saw in Q-3.
And on an annualized basis, I believe that the economy will have expanded by just shy of 5% this year and come in a little below 4% in 2022.
Simply put, the impacts of COVID-19 are going to continue to act as a drag on virus sensitive consumer services next year and ongoing supply chain issues will also delay inventory restocking. Both of these impacts have a depressing effect, in more ways than one, on economic growth, but I don’t see any chance that we will fall back into a recession.
Looking at the employment picture this chart shows my forecast for average monthly growth in jobs during a quarter and to give you some context, over the last decade or so the country has added an average of around 200,000 jobs per month during any one quarter and my forecast is for more robust employment growth as we move through 2022 and, if correct, I expect to see the country return to pre-COVID employment levels in the second half of the year.
And with jobs continuing to return I’m looking for the unemployment rate to continue trending lower and breaking south of 4% during the final quarter of the year. With the expiration of enhanced unemployment benefits – in concert with wages rising significantly in many face-to-face industries such as leisure and hospitality – prospects for people currently unemployed are looking rather good. That said, there are still millions of unemployed Americans who are not looking for work even with wages rising, the labor force still down by 3 million from its pre-pandemic peak, and this is worrying as businesses continue to have a hard time finding employees which raises the expectation that inflation will remain higher for longer than I would have liked to see.
Measures of Inflation
And that leads nicely into my final economic forecast and that is my outlook for inflation. As we have discussed, supply chain issues and labor shortages have increased prices significantly and this top chart shows annual changes in all consumer prices which I expect to remain around 5% until next spring, before gradually dropping down to below 3% by the end of the year.
But the core inflation rate – which excludes the volatile food and energy sectors – won’t peak until early next year before it too starts to gradually pull back and, at these levels, the Federal Reserve will undoubtedly have started to raise interest rates to counteract inflationary pressures. This is not pretty, but I absolutely do not believe that we are in some sort of inflationary spiral, or that “stagflation” will raise its ugly head again.
U.S. Housing Market
Okay! Now it’s time to turn our attention to the U.S. housing market which was a beacon of hope during the pandemic period and, given the massive spike in demand that started last June, I’m looking for a little more than 6 million existing homes will have changed hands in 2021, but I don’t see this level increasing in 2022 – mainly due to ongoing supply limitations as well as rising affordability issues, and I’m therefore forecasting sales to pull back – albeit very modestly – next year. That said, the country has never seen more than 6 million home selling in a single year since records were first kept so the number is still very impressive.
And with the market as tight as it has been so far this year, it shouldn’t be any surprise to see median sale prices skyrocketing and, even though we have 3 more months of sales data yet to be released, I still anticipate prices will have risen by almost 16 and a half % in 2021- a quite remarkable number. This pace of appreciation has never been seen before. In fact, the closest was back in 2005 – when the housing bubble was inflating rapidly – but even then, prices only rose by 12.2%.
But, as I mentioned in my sales forecast, this pace of growth is unsustainable and I am expecting to see some of the heat to come off the market next year but, a growth rate of 7.3% is certainly nothing to sniff at.
There are three major reasons why we will see the pace of growth slow. I have already mentioned my concerns regarding housing affordability, but mortgage rates and new supply will both influence the slowdown in sales and price growth in the resale arena.
Although I do not prepare a forecast for housing affordability, this is my where I expect to see mortgage rates through the end of next year and I am looking for them to continue “stair-stepping” higher but still ending 2022 below 4% – very low by historic standards given that the long-term average for a conventional 30-year mortgage is somewhere around 7 1/2%.
Obviously, as rates notch higher that starts to compress price growth as it puts a lower ceiling on how much a buyer can afford to pay for a home.
And slowing growth in existing home prices and sales will also be a function of additional supply and this chart shows my forecast for single-family starts this year and next. I expect more than a million homes to start construction in 2022 – continuing the trend that started in mid-2020 – but I am sure that some of you may be asking yourselves that if starts are already robust, how have existing home sales been able to increase so significantly if there has been solid supply coming from homebuilders – and that would be a great question.
And I would answer this by telling you that the way the Census gathers data on start is to count the number of home foundations that have been poured, but vertical construction has not necessarily started. And what we have been seeing is a lot of foundations but not so many homes actually being built – and we know this by looking at the number of homes that are for sale but have yet to be started. So, it’s important to look at a separate number that the Census Bureau also puts out which counts the number of units actually under construction, and that number has been growing significantly over the course of the last 18 months or so.
Builders have been hamstrung with rising labor and material costs which will lead new home sales this year to fall below the number seen in 2020; however, I do expect this to pick up significantly next year and my current forecast calls for 927,000 new homes to be sold in 2022.
So, there you have it, my economic and housing market forecast for 2022.
Of course, there are still a number of variables that could lead me to revise this forecast but, as an old economics professor of mine used to tell me, “Gardner, forecast well, but forecast often!”
If everything goes according to my plan, you should expect to see the housing market start to move towards some sort of balance next year, but I am afraid that it will still remain out of equilibrium until at least 2023.
And if you’re wondering, no, I don’t see a housing bubble forming and I’m also not at all concerned about homeowners currently in forbearance, but it would be silly to say that there aren’t any issues in the housing market that concern me because there are and the biggest of which is housing affordability and this will have a significant impact on the millennial generation who are continuing to get older, and they are all – well most – thinking about settling down and, possibly, having children, and I wonder how hard it will be for many of them to be able to afford to buy their first home because most really do want to become homeowners. Will builders figure out how to build to this massive pent-up demand? I guarantee you that whoever can solve this puzzle will do very, very well.
COVID-19 caused an unparalleled shock to the US economy and the rise of the delta variant has certainly impacted the speed of our recovery but, rest assured, this particular forecaster firmly believes that we will recover and that the economy will continue to grow.
Demand for ownership housing remains remarkably buoyant and, in fact, it is quite likely that demand may actually increase with the work from home paradigm that will start to gain momentum next year. It will be fascinating to watch how this impacts not just demand, but where these buyers will ultimately choose to live.
Deciding when to sell your home can depend on a variety of factors. Perhaps your local market conditions are favorable to sellers, or you’ve recently changed jobs, or your family is growing and you need to upsize. Whatever the case may be, making the decision to sell your home is the first step in your selling journey.
Deciding to Sell Your Home
Once you know it’s time to sell your home, it’s natural to feel a wave of emotions. A home is an integral part of a homeowner’s life. They provide countless memories and, for many homeowners, are their greatest investment. But once you’ve decided to sell, it’s important to look at your home with an objective eye to appeal to a wide variety of buyers.
Which repairs should I make before selling my home?
To get your house in top selling shape, identify its outstanding repairs. As you fill out your list, separate the projects into categories which are DIY-eligible, and which require a professional. This will help you to budget for your overall repair expenses and build a reasonable timeline. Some of the most important repairs to make before listing your home include fixing appliances, making sure your sinks and faucets work properly, repairing any cracks or holes in the walls, fixing all leaks and water damage, and ensuring that all systems in the home are functioning properly. Making repairs before you list your home will bode well for home inspections, negotiations, and can even give your home an advantage over other listings. Your agent may suggest a pre-listing inspection to make your home more competitive in a seller’s market.
Which upgrades should I make before selling my home?
When you sell your home, you’re inevitably competing against other listings in your area. The aesthetics of a house play a significant role in its ability to catch buyer’s attention, which emphasizes the importance of improving your curb appeal as you prepare to hit the market. Landscaping projects, new exterior paint, and upgrading your front entry are just a few ways you can spruce up the outside of your home.
And what about the interior? Consider upgrading your appliances to energy-efficient models, which are known for their high ROI potential. This is a great time to repaint your home’s interior as well. Consider using a neutral color palette to make it as appealing as possible to a wide-array of buyers. It’s also a good idea to identify rooms in which the flooring should be replaced or repaired. If it makes most sense to completely re-do your home’s flooring, choose a material that is within budget and has good resale value.
Working with an agent
Listing agents are trained professionals who work with homeowners to sell their homes. Your listing agent will be there to answer any questions you may have throughout the selling process and will negotiate with buyers’ agents to get the best price for your home. But their value doesn’t stop there. A listing agent will list the home, coordinate showings and open houses, and market the home. When choosing an agent, find someone with whom you are compatible both emotionally and professionally, and who cares about the goals of you and your household.
What’s my home worth?
Homeowners can get a general idea of how much their home is worth by using online home value estimators, like Windermere’s free Home Worth Calculator. Though these tools can provide some context behind the value of your home, nothing compares to the in-depth analysis of an agent’s Comparative Market Analysis (CMA). Using a CMA, an agent can accurately price your home to get it sold quickly.
For more information on your local housing market and how to sell your home, give me a call.
Facebook
X
Pinterest
Copy Link
