Selling a home can be a stressful experience.
If
you expect to put your home on the block at some point in 2016, here are
some key factors for you to keep in mind before you address issues and
concerns to make the best possible deal.
It's a seller's market ...
Many homeowners remember the fallout that the housing bust had on
real-estate prices. Even though most investors think of the financial
crisis as having hit its peak in 2008 and early 2009, it took three more
years for home prices to hit bottom.
Yet since early
2012, prices have climbed higher, and the Case-Shiller National Home
Price Index is coming within spitting distance of matching its highs
from 2006 and 2007.
Where you live is a key factor in determining just how much
of a seller's market you can expect. Hot markets like San Francisco
have seen some housing-boom-era practices return to favor, with many
reports of bidding wars that result in offers well above the asking
price.
By contrast, areas where economic prospects are less
favorable have never fully recovered from the housing bust. The more
lucrative a region's economic future appears to be, the easier you can
expect it to be to sell a home.
... but mortgages could get more expensive
One key factor in how much sellers receive for their homes is how much
buyers can afford. Low mortgage rates have helped fuel price increases
in recent years.
But some now fear that with the Federal
Reserve having begun a new cycle of rate increases, a move higher for
mortgage rates could make homes less affordable.
So far, the tiny quarter-point boost that the Fed made in mid-December
hasn't pushed mortgage rates appreciably higher. Historically, though,
tightening has generally led to increased rates on mortgage loans.
Sellers need to be prepared for greater difficulty for prospective
buyers trying to get financing.
