Home Sellers

Buy, Sell or Wait? Coronavirus’ Impact on the San Diego Real Estate Market

April 7, 2020 by Danielle Negroni Leave a Comment

Close-up Of Mature Couple Looking At House Photo On Digital Tablet

Over the last few weeks, my clients have had a multitude of questions and concerns during these uncertain times. I would like to address them here, and answer as many questions as possible with the most reliable information available to date.

First and foremost, my top priority is the health and safety of my clients, fellow Realtors, and our amazing community. I will continue to follow all CDC, WHO and California Association of Realtors (C.A.R.) guidelines and incorporate these parameters into my day-to-day business.

Secondly, although the federal government has funded an economic stimulus package, it will take time to unravel the economic ramifications on our local real estate market. This unprecedented health crisis is unlike any real estate market disruption we’ve experienced before. Unlike the S&P 500, the real estate market is not summarized in a daily snapshot.

As our social distancing restrictions ease, the real estate market will return to business as usual. Until then, buyers, sellers, Realtors and everyone else in the real estate industry will continue to conduct business the best they can while following all pertinent rules and guidelines. Below is a brief summary of what’s happening in the San Diego real estate market as of April 2020:

Today’s Market:

Real estate transactions are still ongoing. Escrow, title, lenders and notaries are working. Existing transactions will still close although there may be some delays. Appraisals, home inspections and photography is delayed so new escrows will most likely extend beyond the traditional 30-day escrow

Mortgage rates are historically low, and may go lower.

Virtual showings and tours are allowed.

Today’s virus conditions are different than the factors that led to the housing decline in 2008. It’s anticipated the housing market will remain strong with low inventory and interest rates. People still want to buy homes, as real estate is historically a solid long-term investment.

Investors are investing money into real estate in lieu of the stock market.

Buyer and Seller Tools Available to you in the Current Market:

I’m using a digital platform to schedule virtual tours of homes. If you are interested in looking at homes, please reach out to me to discuss how best to views properties that are still on the market.

I am sending regular market updates to my buyers, sellers, and anyone who’s interested. Just reach out if you’d like to receive these reports!

I’m assessing market data on a weekly basis to assess current valuations and pricing. Even in these uncertain times, I want to be sure my sellers are pricing their homes competitively and my buyers are making informed decisions.

Buyer Considerations:

Review your financial qualifications with a reputable lender as lending terms have changed in the past few weeks.

Compile a list of target homes and investigate the Seller’s motivation and reasons for a sale.

Take virtual tours, but rely on my experience and market knowledge for invaluable input.

Seller Considerations:

Serious buyers are still in the market. Don’t panic and take a “low ball” offer out of fear.

Realistically it may take longer to sell your home so exercise patience as buyers pivot to virtual platforms.

Use the extra time to do repairs, organize closets and other home DIY projects to ensure your home is in ideal showing condition.

I realize many of you will have additional questions that are specific to your needs. Questions like:

How will the new C.A.R. Corona Virus Addendum impact my current or new escrow?

Fannie Mae and Freddie Mac have eased their standards for property appraisals and verification of employment – how does this affect me?

Are jumbo loans now more difficult to secure?

How does the mortgage forbearance program and moratorium on evictions impact me?

I’m available to answer these questions and other concerns you may have at this time. Please feel free to reach out at your convenience and we can discuss how I can best serve you. Stay safe and healthy!

6 Tips for Selling Your Home During the Holidays

December 17, 2018 by Danielle Negroni Leave a Comment

Putting your home on the market during the holidays may not be ideal. But that doesn’t mean that your home won’t sell quickly or for the best possible price! I recently helped my clients in Carmel Valley list their beautiful home and we were in escrow with multiple offers in less than two weeks! So it IS possible to successfully sell your home during the holidays. It just takes some thoughtful planning:

Tasteful Holiday Decor

I think most of us can agree that holiday décor is something special. But going overboard on the decorations can turn off a potential buyer. If you want to decorate for the holidays, keep the decorations minimal. Just a wreath on the front door, a simple menorah, or a tastefully decorated tree in the living room. You don’t want the decorations to feel too personal or too overwhelming– after all, you don’t want the buyer to feel like a guest in your home. You also don’t want your decorations to be so numerous that they completely cover parts of your home – buyers may wonder if you’re hiding something.

Professional Home Staging

Home staging helps sell a home at any time of the year, but it can be especially useful during the holidays. A professional home stager will help edit what you have or stage your space to appeal to potential buyers. If you want to decorate for the holidays, they can help give you advice on how you can add a little holiday cheer to your home without doing too much. For my sellers in Carmel Valley, home staging made all the difference.

Price to Sell

Even though December and January aren’t typically the most popular months to buy a home, there are still buyers looking. And the good news is, these buyers tend to be pretty serious! They’ve likely either been looking for a while or really need to find a home quickly. Don’t do yourself a disservice by pricing your home too high. It can be tempting to do so especially if there aren’t any other homes for sale in your neighborhood, but if you price your home right, you’re likely to quickly attract a serious (and qualified!) buyer.

‘Tis the Season

With the holidays on everyone’s mind, make sure your home feels warm and inviting. Turn the heat on low, make sure your fireplace is functioning, use cozy throws in your staging, and leave out some sweet holiday treats on the kitchen counter. If you’re not currently living in your home, talk to your agent about what they will do to keep your home from feeling too cold and cheerless when potential buyers come through.

Light Up Your Space

Shorter days and rainier weather can make any home feel dark and cold. Make sure to have your windows washed before listing to let in the maximum amount of natural light. Replace heavy drapes with sheer panels. Move or remove any pieces of furniture that block the light from getting into a room. And make sure your interior and exterior lights are in proper working order. Buyers may be viewing your home in the daylight or in the early evening when it’s already dark. Make sure your home feels warm and inviting no matter what time of day it is!

Don’t Skip the Professional Photos

The holidays are busy for everyone. Make sure to have professional photos, video, and/or a 3-D tour created of your home to share with potential buyers. Most people start their home search online and, especially during the holidays when time is limited, buyers may skip over your home and not even schedule a showing if the online listing doesn’t appeal to them.

If you decide to put your home on the market during the holidays, I hope you’ll keep these tips in mind. And remember, if you don’t get your home listed this month, January is a fantastic time to sell a home in San Diego! Give me a call at (858) 735-5767 to get started!

San Diego Real Estate Market Report: Summer 2018

September 24, 2018 by Danielle Negroni Leave a Comment

Earlier this year, I published a blog speculating on whether home prices in San Diego County were about to peak. If you missed the blog, you can check it out here. As we head into fall, there are warning signs that home prices in San Diego have now indeed peaked. Homes are staying on the market for longer, many don’t receive multiple offers, and many sellers are forced to reduce their price in order to get the home under contract.

While prices in many cities have statistically increased in 2018, moving forward, it’s unlikely the steady growth on the graphs below will continue.

So what does that mean for you as a San Diego County homeowner? It means that if you’ve been waiting to sell your home, now may be the time to prepare for a sale. It’s anticipated that our inventory will reflect a Buyer’s market by 2020 and this leaves one more strong selling season before prices reflect such a change. If you want to maximize the sales price of your home, call me at (858) 735-5767 to get started!

San Diego County

In San Diego County the median sales price for a detached single family home is up 7.1% from August 2017, making the median price now $637,000. The median price for townhomes and condos has also increased by 7% from last year, making the median sales price $417,250.

Carmel Valley

Carmel Valley has seen significant increase in the median sales price of homes over the last year as well. The median price for a detached single family home is now $1,315,525. This increase is up 7.8% from August 2017. Townhomes and condos are now selling for an average price of $615,500, an increase of 4.3% in the last 12 months.

Del Mar

The median sales price for a home in Del Mar is $2,000,000. This is a 7.5% increase from August 2017! A condo or townhome in Del Mar now sells for an average price of $1,080,000. This is up 4.9% from the previous year.

La Jolla

La Jolla has also seen an increase in home prices since this time last year. The price of a detached home has increased by 5.9%, making the median sales price $2,150,000. Townhome and condo prices have also gone up 4.8% since August 2017, bringing the median sales price to $712,750.

Solana Beach

Home prices in the city of Solana Beach are up 3.9% from last year, making the median price for a detached single family home now $1,535,000. But townhome and condo prices in Solana Beach have really skyrocketed! The median price for a condo has increased 13.5% since August 2017, making the average sales price $952,500.

[All data sourced from Sandicor MLS on September 13th, 2018]

3 Questions to Ask Yourself When Downsizing

August 5, 2018 by Danielle Negroni Leave a Comment

For almost every homeowner, there will come a time when you’ll be faced with the decision to downsize or hang onto your current home. This decision is often filled with emotions, as many times the home you’ll be selling the home is where you raised your family and made a lifetime of memories.

As you start to think seriously about whether you should downsize now or stay in your home for a little while longer, take time to ask yourself a few questions to help make your decision easier.

1) What Do I Hope to Accomplish Through Downsizing?

If you’re even thinking about downsizing, chances are it’s because your current home feels wrong for you in some crucial way. Maybe it’s too large now that your kids have all left the house. Maybe you’re still paying a mortgage and the monthly cost is keeping you up at night. Maybe your current home has too many stairs, too much grass in the backyard, or a pool that requires too much of your time and attention.

Knowing what problem downsizing would solve in your life can help you when you’re sorting through your feelings about a possible move. Sometimes, you may be able to find an alternative solution to your current homeownership woes without putting your house up for sale. If your home is too large or the mortgage too high, maybe you can have another family member or roommate move in with you. If you hate taking care of the pool, maybe you can hire a pool maintenance company to come once a week to service it.

Sometimes downsizing really is the best solution! In this case, you’ll want to consider the following:

2) How Much Time Should I Give Myself to Move?

Sorting through a lifetime of stuff takes time. Be honest with yourself about how long it will realistically take you to sort through everything you have, get your home ready for market, purchase a new property, pack, and move.

While no one can predict the future, if you have general deadlines you’ve set for yourself like, “In a few years I want to move closer to my kids” or “Before I retire, I want to purchase a condo by the beach”, take these into account now. Tomorrow always comes much sooner than we expect.

Most experts advise that you should give yourself at least six months to prepare to list your home. During this time, you’ll want to be ruthless in your editing. If you’re at a loss with where to start, grab my free download “101 Things to Get Rid of When Downsizing” to help you figure out what to keep and what to toss!

3) How Do I Want to Feel When This Process is Over or What’s the End Goal?

This is a great question to ask yourself because it helps you discover what’s most important for your next home. For example, if you want to feel “Free” when the downsizing process is over, you’ll want to look at condos, townhomes, or low-maintenance homes that will easily allow you to travel, visit family and friends, or just generally not tie you down with a lengthy home to-do list. If you want to feel “Peaceful,” look for a home in a quiet location or with tranquil spaces that encourage you to relax.

If you ultimately decide that now isn’t the right time to begin the downsizing process, still grab my free download “101 Things to Get Rid of When Downsizing” to have on hand for when you are ready to start simplifying your life. Even if your move is more than a year away, it’s never too soon to start sorting through your possessions now.

If a move is in your future, contact me to get a free estimate of your property’s current value – you might be surprised about what your home is worth in today’s market!

3 Tips to Help You Understand What Stays With the House When You Move

July 5, 2018 by Danielle Negroni Leave a Comment

There’s so much to do between getting your home ready for sale, entering escrow, and ultimately packing up and moving out. It’s easy to make assumptions about what’s yours to keep. After all, you may have selected the window coverings and designed the built-in cabinetry. It’s essential, however, to know what contractually remains with a home upon its sale before you fill up a single box. Trust me when I say you don’t want a dispute to arise during the final walkthrough and delay closing until the issue is resolved.

Use the three tips below to avoid a misunderstanding with a buyer about what contractually remains in the home and is part of the sale:

What is Real Property?

Real property is defined as land and any property attached to it. Under the terms of a real estate contract, and in the context of a home sale, this means anything that’s nailed, bolted, screwed, anchored, built-in, or otherwise attached to the house.

Examples of real property include doors, windows, ceiling fans, most light fixtures, plumbing, fences, landscaping, built-in bookshelves and furniture, storage sheds, curtain rods, blinds, and so much more. The most commonly disputed items I’ve encountered are TV wall mounts, light fixtures, appliances, and window treatments. If you’re not sure what constitutes real property, ask your Realtor!

Write It In the Contract

One of the best ways to avoid a misunderstanding with a buyer of your home is to put it in writing. If there is a family heirloom, a light fixture, or an appliance you want to take (i.e., the high-end wine refrigerator) write in the contract that these specific items do not convey with the sale of your home. These so-called “fixtures” will otherwise be included in the contract and legally must remain with the house.

If You Want It, Swap It Out

I advise my Sellers if they have purchased expensive items for the home and can’t live without them, replace them before going to market. It’s important to note, however, these upgraded items are likely the reason the home may sell for more money. I wouldn’t strip the house of every upgraded fixture but instead, focus on just one or two items that may work well in your next home. After careful consideration, most of my Sellers realize that most of the things should stay.

If you’re thinking of selling, I would be happy to put my expertise to work for you! I’ve helped many sellers successfully navigate the sale of their home in San Diego County and am available to answer any questions you may have about real property, moving up, downsizing, and more. Please give me a call at (858) 735-5767!

55 and Over Communities: They’re Not What You Think

June 18, 2018 by Danielle Negroni Leave a Comment

Where did your mind go when you read the words “55 and Over Community”? Did you suddenly have visions of golf courses and bingo nights and shuffleboard and….your grandparents?

If you’re age 55 or older, you might not consider yourself retirement ready. Perhaps, however, you are ready to live among your peers and away from the typical neighborhood chaos of young families.

Today’s 55+ communities aren’t what you think they are. Many luxury active adult projects have sprung up in recent years in San Diego, offering homeowners resort-style amenities and more.

Here are 8 reasons to consider moving to a 55 and over community in San Diego:

Lower Costs

Homes and condos in a 55 and over community are usually smaller and priced less than similar homes in the area. This may give you the opportunity to buy in a more upscale area than you were able to previously afford.

Less Maintenance

Even if you purchase a detached home, many active adult communities will take care of some or all of your home’s exterior maintenance needs. With less square footage to take care of inside, you’ll be able to spend more time enjoying your home and new community.

Floorplans Designed For Your Stage in Life

Many 55 and over communities offer single story floorplans or contain the essentials like the kitchen and master suite to the main floor. You may also find homes with wider doorways and other features that are geared towards helping you age gracefully.

Security

Gates, restricted access, and security patrols are common features of active adult communities. If you live alone, you may enjoy moving to a community with these services.

Peace and Quiet

The minimum age limit of the community means that children and younger adults will only be guests of the community and as guests, will need to abide by the community rules. This might be a welcome change if you’ve previously lived in a community with a lot of children and teenagers. Think garage band.

Location

Most 55+ communities and certainly some of the newer projects are close to shopping, dining, entertainment, medical facilities, and more. Some active adult communities provide transportation to these nearby resources.

Amenities

The amenities available in 55+ communities vary wildly from project to project, but many of the newer luxury communities offer very attractive amenities. Sparkling pools, state-of-the-art gym facilities, clubhouses, BBQ pits, pickle ball, bocce ball courts, golf courses, and more. There may also be additional services offered that are geared towards an aging community like health services, housekeeping, meal preparation, and more.

Be aware that buying into an active adult community usually means you will need to pay more fees, either in the form of increased HOA dues or just general fees to cover the cost of all the amenities and community maintenance.

Opportunities for Socialization

One of the prime reasons people choose to move to a 55+ community is because of the opportunities to socialize and develop friendships with your neighbors. Along with the great amenities, many communities offer monthly or weekly events to get you out of the house and interacting with other people. Everything from fitness classes to yes, bingo games, help retirement-age people fill their time. Homeowners will tell you it’s the social activities they love.

When shopping for a home in an active adult community, be sure to check out their events calendar to see what kinds of activities and social outings they plan. It will be one indication if the neighborhood may be a personal fit.

If you are thinking of downsizing from your current home, I would love to talk to you about your next step, whether that’s buying in a 55 and over community or somewhere else. Give me a call at (858) 735-5767!

8 Affordable Ways to Update Your Home

May 4, 2018 by Danielle Negroni

Whether you’re planning to sell in the future or just want to breathe new life into your home, there are many easy and affordable ways to update your house! And you don’t need to have any special skills or need to hire someone to do these updates – you can tackle most projects in a weekend.

Repaint

It’s amazing what a can of paint can do. Whether you entirely repaint the interior of your home, paint the cabinets, add an accent wall, or repaint your existing furniture in a trendier color, paint is the DIYers best friend! There are thousands of online tutorials for painting projects – all you need are the right tools, a can of paint, and a little creativity.

Swap Out Hardware

Handles, drawer pulls, knobs, hinges – these come in hundreds of styles and finishes to fit any aesthetic. Choose gold or brass hardware for an on-trend look or go for a classic finish like brushed nickel. If your style is more eclectic, mix and match finishes or hunt for vintage options.

Update Your Light Fixtures

You may need to call in an electrician to help you update your light fixtures, but some may be easy enough that you can do yourself. If you have builder-grade light fixtures, take a trip to your local Home Depot or Lowe’s to pick out a few new pieces. This will instantly add character to your home and can help you pull a room together.

Refresh Old Appliances or Furniture

Whether you’ve recently brought home a vintage piece or just want to fix up an existing piece of furniture that has seen better days, contact paper and stickers are a great way to fake the look of a luxe piece for less. Use faux marble contact paper to get the marble-topped table of your dreams or use stainless steel “stickers” to cover an appliance that is starting to yellow with age. You can also use wallpaper or even washi tape to put a new spin on an old favorite.

Install New Light Switch Covers

It might not seem like much, but updating your light switch covers can help a room feel complete. It’s the attention to details that can really make or break a space.

Upgrade Your Window Treatments

You can work with a professional window specialist to get drapes, shades, and shutters. But you can also browse your local big-box retailer to choose a new solution for your home and install it yourself. While you won’t be able to boast that you have custom window coverings when you go to sell your home, you will get a new look at a fraction of the cost.

Install a New Tile Backsplash

Did you know that they make peel-and-stick tiles that are ideal for use in your kitchen or bathroom? These are easy to install and don’t require a handyman to do the work.

Rearrange the Furniture

This might seem obvious, but never underestimate how powerful rearranging the furniture can be. It can dramatically affect how light, bright, and open your space feels. If you can’t figure out how to rearrange a space, consult a friend with a good eye to help you see the possibilities!

These are just a few of the many affordable home projects you can tackle on your own! And if you’re willing to pick up a few new skills, you can save even more on future home updates.

But if you’d rather hire someone to do the work for you, I would be happy to provide you with some local recommendations. Just reach out to me and let me know what you’re working on!

How to Prepare Your Home For Showings

April 9, 2018 by Danielle Negroni

Even though it’s a seller’s market, it’s not enough to just put a “For Sale” in the front yard and call it a day. True, your house will probably sell eventually. But it likely won’t be at the price you want. Preparing your home for the market and for showings is crucial to making sure buyers see your home in the best light.

First impressions matter even in a market where sellers seem to have the upper hand. Most buyers are looking for a turn-key home. A messy or cluttered house gives the impression that the home hasn’t been well cared for.

Before you list your home for sale and open it up for showings, make sure you take these 8 steps to prepare your home:

First Impressions Matter

It bears repeating that first impressions are everything. Up your home’s curb appeal by sweeping the walkways, cleaning up the landscaping, painting the front door, and setting out a new welcome mat.

Let the Light In

Before leaving the house for a showing, pull back the drapes and open up the blinds to let the natural light flood in. No buyer wants to imagine themselves living in a cave. Make sure their first impression of your home when they open the door is of a light, bright, and cheerful space! If the home is being shown at night, turn on all the lights both inside and outside to give your home a warm glow.

Take Care of Small Repairs

Windows that don’t open, doors that stick, and handles that don’t turn are all easy things you can fix before your home goes on the market. As buyers explore your home, they’ll be keeping a mental list of all the things they’ll need to fix or change if they buy your property. Avoid adding to the list by taking care of the simple things up front!

Stage and Declutter as Needed

The goal of staging and decluttering is to help buyers imagine themselves living in your home. It can be hard to keep your home picture-perfect if your family is still living there, but it’s so important to clean up before every showing. When a buyer sees a cereal bowl in the sink or a stray sock on the floor, it instantly reminds them that they’re walking around someone else’s home.

Keep Bedrooms Neat

If you have kids, this can be a tall order. But decluttering your entire home ahead of time can help. The fewer possessions your children have in their rooms, the easier it will be for them to tidy up before they leave for school.

Keep Bathrooms Clean

After the kitchen, the bathroom is usually the second most expensive interior remodeling project. Even if your bathroom isn’t updated, keeping it neat and clean can help buyers see its best features and overlook the less desirable elements.

Make Closets Look Bigger

Buyers will almost certainly be checking out the closets and existing storage space you have in your home. Ruthlessly declutter these areas and neatly arrange the items you leave behind to create the impression that your home has plenty of space for all of their belongings!

Get the Pets and Kids Out of the House

If your home is being shown, your home whole family needs to get out of the house – including your pets! Many people are afraid of dogs or just don’t like animals. No matter how nice your pets are, you want buyers to feel calm and relaxed as they view your home. Work with your agent to develop a showing schedule that will allow you to get your pets out of the home or at least, into a secure area before every showing.

Likewise, if your kids are used to coming straight home after school, work out a plan where they can stay with a neighbor until the showing is over. The only people that should be in the home during the showing are the potential buyers, the buyer’s agent, and your agent, if you want them to be there for showings.

As time-consuming as it can be to prepare your home for every showing, this preparation is absolutely crucial and will help shorten the time it takes to find a buyer. Once an offer has been accepted, the showings will stop and you can focus on packing for your move!

If you’re planning to move this spring or summer, I can advise you on what steps you need to take to prepare your home and help you develop a gameplan to get your home on the market during the home-buying peak!

5 Things to Consider Before You Downsize

April 1, 2018 by Danielle Negroni

No matter how much you love your home, there will come a time when your house simply won’t fit your needs anymore. Perhaps your home feels too roomy now that your kids have gone off to college. Or maybe you’re just tired of lugging the vacuum cleaner up the stairs and are ready to purchase a smaller, single story home. Whatever your reasons, here are 5 things to consider before you downsize.

1) Know Your “Why”

It pays to keep your “why” firmly in the front of your mind. For most people, downsizing is not an easy task. You’ll likely need to spend a considerable amount of time decluttering and going through all the things you’ve accumulated after years in your current home. Having a strong reason to get to the finish line will keep you motivated when you’d rather throw in the towel.

2) Separate Yours Wants and Needs

As with any other home shopping experience, you’ll need to separate your needs from your wants before you start looking. This will allow you use your time more efficiently and help you avoid buyer’s remorse down the line. For tips on separating your wants from your needs, check out my recent blog.

3) Know How Small is Too Small

It’s important that you don’t get too hung up on purchasing the smallest possible home. Take time to think about the spaces you most enjoy in your current home, your hobbies, and how much time you plan to spend in your new house. You may find that “downsizing” really means downsizing on your monthly costs, not square footage.

4) Consider Your Costs

It seems simple on paper: smaller house = cheaper mortgage = more money in your pocket. But that’s not always the case. Particularly if you’re moving to a condo community, make sure you’ve factored in HOA and mello-roos fees. If your primary reason for downsizing is to save money, you’ll want to keep track of these “hidden” fees to ensure your monthly housing costs will truly be reduced.

You should also take into account how much it will cost to move and furnish a new space. Many times, people who downsize find themselves having to purchase all new furniture that will actually fit into their new space. A visit to a local furniture store can help you estimate your costs.

5) Explore Neighborhoods

San Diego truly has a neighborhood to fit every lifestyle. Just because you’ve spent the last twenty years in the same location doesn’t mean you have to buy another property in the same area. Imagining the possibilities is part of the fun of house hunting. Spend some time checking out communities before narrowing your list down to a couple to focus on during your search.

While it can be difficult to say goodbye to a beloved home full of wonderful memories, downsizing can be a fun and exciting adventure! If you’re thinking of making a change, I’d love to help you through this next step – give me a call to get started!

3 Reasons to Sell Your Home in 2018

March 20, 2018 by Danielle Negroni

“It’s a seller’s market!”

“Now is a great time to sell!”

As a San Diego homeowner, you’ve probably seen this phrase on one piece of real estate marketing mail after another for the last few years. It can be hard to discern if it actually is a great time to list your home or the Realtors who mail in your neighborhood are just saying that to get you to call them.

While it is a seller’s market and a great time to sell, it helps to have context for those statements:

In my last blog post, I took a look at the median sales price of homes in a few different San Diego housing markets. Many local markets are reporting prices we haven’t seen in ten years or more. In some areas, the median price for a detached home has far surpassed its 2006 pre-recession peak. But home values can’t continue to rise indefinitely. I believe we will see a decline in home values in the months to come as interest rates rise and the housing market peaks.

Interest rates have steadily risen nearly every week since the beginning of the year. Bankrate.com shows current interest rates for a 30-year fixed rate mortgage hovering around 4.5%.

As interest rates rise, they limit buyer purchasing power. According to a recent article from Rismedia, “If interest rates rise 1 percent and all other economic factors remain the same, purchasing power for homebuyers will decrease by just over 11 percent; therefore, every quarter-percent (0.25 percent) rise of interest rates reduces homebuyer purchasing power by 3 percent.” This means that someone who might have been able to purchase your home a few months ago might no longer have the buying power to do so, shrinking the pool of potential buyers for your home. The higher the value of your home, the more you will likely feel the effects of that shrinkage. Rising interest rates will help bring down prices at the top end of the market, as homeowners who are serious about selling might find themselves making concessions on price to get their home sold.

Once your home sells, you will likely need to purchase a replacement property. If you wait too long to sell your home, you might find yourself conceding on your sale price AND entering the market with less purchasing power that you would have had just a few months ago.

Finally, if your home is aging, you should keep in mind that you likely have some big-ticket repairs on the horizon. Depending on its composition, your home’s roof will need to be replaced every twenty to thirty-five years. The lifespan of a furnace is about fifteen to twenty years. Most appliances last no more than fifteen years. Waiting to put your home on the market means you could end up footing the bill for these repairs in order to sell the house, taking a hit on price to get your home sold, and then entering the marketplace with a lighter wallet and reduced purchasing power.

There’s one other point you should also keep in mind: the new tax law lowered the mortgage interest deduction from $1.1m to $750,000. In 2018 and going forward, your state, local, and real estate taxes are put into one pool for deductibility purposes. Between the three of them, you only can deduct up to $10,000 total. It’s hard to predict how these tax changes will impact the real estate market, but they do cumulatively place a heavier financial burden on the buyer.

If you’ve been on the fence about selling, it might be time to get off the fence and put a “For Sale” sign in your yard. I’d be happy to meet with you to discuss the specifics of your situation. Give me a call or send me an email to set up an appointment!