Four warning signs in our market that you should keep in mind as a seller.
Are you a homeowner in or around Dallas looking to cash in on the massive amount of equity you’ve gained over the last three years? If so, keep in mind that we’re seeing a few potential warning signs.
Our market has seen a drastic increase in buyer demand. Because of this and the low inventory of homes, our median home price hit an all-time high of $400,000, while the supply of available homes dropped almost 50%. Most agents would say that they expect this trend to continue, but I want to share with you a few potential warning signs:
1. Mortgage interest rates are rising. Rates have now passed the 4% mark, and this is the first time we’ve seen rates this high since May 2019. Rates are still low compared to historical data, but I suggest you don’t wait for rates to get too high. We may start seeing a slowdown in buyer demand, which will lead to an increase in inventory and your competition.
2. Keep an eye on your neighborhood. Right now, we have low inventory. However, if you notice more and more of your neighbors listing their homes, that competition could have an immediate negative effect on how much you can sell your home for.
“Don’t wait for rates to get too high.”
3. Buyers are looking for move-in ready homes. If you want to get the highest price for your home, the property should need minimal repairs or upgrades when you list it. We can sell your home as is, but you need to understand that buyers will want to get it at a discount.
4. You need to hire the right agent. You might think that since this market is so strong, you should sell the home yourself and save on the commission. I get how this makes sense, but we’ve been on the opposite side of these transactions. People who list their own homes lose more money off the sales price than they would have had to pay in commission.
When you factor in the mortgage rate volatility, you’ll want to hire an agent who can make the sale as streamlined, efficient, and stress-free as possible. Work with an expert agent who can get your home the most exposure possible, navigate multiple offers, and set up strategic counteroffers.
If you want to see what your home could sell for right now, you can email me your address or visit our website. If you have any other questions about real estate, call or email my team or me. We would love to help.
