Selling your home in 2021? What you need to know
March 2, 2021
Despite the pandemic, 2020’s real estate market saw some exciting highs for people who sold their homes. If you’re thinking about getting in on the action this year, there are a few important things to know.
2021 is expected to be another good year for sellers, according to realtor.com’s 2021 Housing Forecast. Our team of economists is expecting the number of buyers in the market to continue to outweigh the number of homes for sale. And, while home prices won’t grow quite as fast as they did in 2020, our experts are projecting that they’ll continue to reach new highs.
As you consider your options, timing and strategy, it’s also important to note that a combination of higher prices and rising mortgage rates throughout the year could begin to make affordability a challenge for some buyers, especially first-time buyers. And, regardless of these factors, the strength of the 2021 housing market will certainly be impacted by our nation’s success in containing the pandemic and staving off a double-dip recession.
There are so many nuances to know if you want to move in 2021, but whether you’re planning to upgrade or downsize or simply relocate somewhere new, here are five tips for making it a smooth transition:
- Consult a professional and weigh your options. As a seller, you have a number of options available to you. Although we believe there is value in working with an experienced agent who is familiar with your local housing market to guide you through the process, it’s good to know what your options are and choose the one that’s best for your situation. You can learn more about the options available to you in your market on Realtor.com’s Seller’s Marketplace.
- Know where you’re going. In this market, you can expect your property to sell quickly, so if you plan to buy a home while selling your current one, it’s critical to have a strategy in place for making the transition BEFORE you sell. Remember that, as a buyer, you’ll be in the reverse position and facing the same competition as the folks looking at your home. This is especially true if you need the equity in your current home to purchase a new one. Given sellers are in control, you may have the option of asking your buyer to allow you to stay in your home a little longer with a rent-back option, or consider renting before buying your next home.
- Visuals are more important than ever. Although searching for homes online isn’t new, with stay-at-home orders and social distancing, more people are taking their searches online further than before. When you are interviewing agents, ask how they plan to showcase your home. A recent realtor.com survey found that listings with virtual tours received more views than those without, and home shoppers were relying on both virtual tours (61%) and high quality listing photos (51%) to weed out homes they want to visit in person.
- Prepare for the sale. All of the small home projects you’ve been thinking about or meaning to do from a fresh coat of paint to decluttering your closets or fixing a leaky faucet — now’s the time to do them. The little details will make a huge difference in helping would be buyers see the potential in your space.
- Take safety seriously. Even with a great virtual tour, most prospective buyers will want to see your home in person before they make an offer. Your real estate agent can help by limiting the number of showings per day, ensuring gaps between showings and requiring masks. But keep in mind that, once everyone leaves, it will be up to you to clean and sanitize your home.
- Select the offer that is best for you. With so few homes on the market, you should be prepared to receive multiple offers, possibly all at once. While it’s exciting, it’s important not to say ‘yes’ too soon so you can clearly think through if the offer is right for you, and that may not necessarily be the highest one. Typically, sellers have 24 to 48 hours to accept an offer, so take the time to assess each offer you receive. This is where an agent can add value as they know the market and can provide intel and strategy.
