If you live in Richmond, CA and you’re wondering if now is the time to sell your property, the answer is a loud, “YES!” There is a shortage of homes in the San Francisco Bay Area which makes it a Seller’s Market. Here’s what you should know about the current market and what you should do to ensure that you get top dollar for your home.
Why You Should Sell Your Property Now
Over the past few years the real estate market has had its ups and downs and has been greatly impacted by COVID-19, fluctuating mortgage rates, inflation, and other factors. Here’s one thing that buyers have learned: their reasons for purchasing a home are bigger and stronger than world influences. Moving closer to family, upsizing their home to accommodate a work from home office, downsizing to reduce expenses, or settling down in a community that offers a better quality of life has overshadowed high mortgage rates and the fear of inflation.
However, these perceived “high” interest rates (as compared to the 3% range lows of the 2020s) are historically average and yet have caused many homeowners to hold onto their properties. This has caused low inventory levels that can’t keep up with demand. Many first time home buyers are looking to enter the market and yet can’t find a home to purchase. This makes it a prime time to sell your property as demand exceeds supply and prices remain strong.
Think Beyond Interest Rates
Many sellers have been closely watching interest rates to gauge buyer interest. Again, buyers are looking beyond interest rates as many know that low interest rates mean higher home prices and high interest rates mean lower home prices; there’s a certain potential for a leveling out of the monthly payment. However, when mortgage rates are high and home prices are low, that’s a great time for buyers to jump in. Buyers can refinance their mortgage when rates drop while securing a lower home price. When interest rates are low and home prices are high, you could be anchored to that payment. As a seller, this means that as you sell this home, you have the potential of purchasing your next home at a lower price while still keeping in mind that as the market potentially shifts, you can refinance and get a lower rate on your new home in the future. (Be sure to discuss these options with your real estate specialist and your mortgage lender. Every situation is unique and it’s important to assess your particular home and finances to make the best decision.)
New Financing Opportunities
As the home shortage and affordability crisis persists, new financing options have come onto the scene to benefit first time home buyers. This is bringing more buyers into the real estate market which gives you a greater chance of selling your home for top dollar. For example, CalHFA is offering several government loan programs including options for down payment and closing cost assistance which is a great opportunity for home buyers which clearly could benefit you as the seller. More buyers equals more demand which equals more competition for your home.
Tips to Sell Your Property in Richmond, CA
If you’re ready to sell your property, the first step is to hire a reputable Realtor®. He or she will know the local market, they’ll set reasonable expectations as to the price and time it will take to sell your home, and they’ll share helpful insight as to the tasks that need to be completed to sell your home for the best price. Check Zillow and Google to ensure that your potential agent has sold homes within the past year (the real estate market is ever changing and the market today isn’t the market from three years ago) and read their reviews. They’ll also know how to price your home right: too high and you’ll scare away buyers, too low and you may be leaving money on the table. They should show you comparables in your market so you know what the competition is and why your home is set at the designated price.
With a Seller’s Market, the good news is that you hopefully won’t need to put a whole lot of time or money into fixing up your home. With high demand and competition between buyers, chances are that some simple updates will be sufficient to stand out in the market. Here are a few easy fixes to consider:
- Spruce up the front of your home. This is the first thing that buyers see and you want to give a great first impression. Pull those weeds, freshen the mulch, mow the grass, trim the hedges, and maybe even paint that chipped front door.
- Declutter your trinkets so that your buyers can picture themselves living in the home. This means putting away personal items, collections, and even painting that bright blue bedroom. Give your potential buyers room to dream.
- Minimize. A crowded house could also make it seem like it’s too small, so donate extra clothes to make the closets seem large, leave room in the cabinets, and don’t overcrowd your rooms with too much furniture.
- Make it sparkle. No one wants a dirty house and cleaning it can be the easiest way to make your home appealing. Keep covered baskets at the ready for kids’ toys, shove Lysol Wipes under the sink for a quick clean, and pack what you can to minimize the messes that might be made. Fresh smelling candles and air fresheners might be a good idea, too.
Are you ready to sell your property in Richmond, CA? Give the Rick Fuller Team a call! We’re local agents who are ready to give you an experience you’d be excited to tell a friend about! We work with local lenders, contractors, insurance brokers, junk haulers and more to help you every step of the way. We’re here to serve you!
