Selling a House: More Stressful Than Saying 'I Do'?
Selling a home is considered more stressful than planning a wedding. Yes, you read that right! According to a recent study by Opendoor, selling a home is 35% more stressful than planning to exchange vows. And for many homeowners aged 55 and over, selling a home is often intertwined with major life transitions, adding another layer of emotional complexity. This statistic might surprise some, but it highlights the significant emotional and logistical hurdles involved in selling a property. Whether you're downsizing, relocating, or simply embarking on a new chapter, understanding the potential stressors and planning effectively can make a world of difference. Why is Selling a Home So Stressful? Among 55+ Americans, selling a home (65%) ties with starting a new job (65%) as the most stressful life events. These events are considered more stressful than buying a home (62%) and planning a wedding (48%). Women in this age group find home real estate transactions significantly more stressful than men, with 72% of women citing selling a home as the most stressful event compared to 57% of men. Here are just a few of the reasons selling a home can be overwhelming: Emotional Attachment Homes are more than just structures; they hold memories and sentimental value. Of those surveyed, 66% feel attached to their homes, and 56% have lived in their homes for 15 years or more. This makes leaving a home a bittersweet mix of emotions, making the selling process emotionally taxing. Uncertainty and Financial Pressure Selling a home involves many uncertainties, such as finding a buyer, negotiating prices, and dealing with market fluctuations. The financial stakes are high, and the pressure to get the best deal can add to the stress. Coordination of Logistics From staging and showing the home to handling paperwork and moving logistics, the process requires meticulous planning and coordination. This can be overwhelming, especially for those who are also juggling other life responsibilities. Tips for Managing Home Selling Stress Understand Your Selling Options Knowing your options and planning ahead can significantly reduce the stress of selling a home. Partnering with a real estate professional allows them to handle marketing, negotiations, and paperwork—not to mention an average of $34,000 more in profit, according to a recent study. How to Maximize Your Home Sale Profits Another option is iBuyers, which is when companies buy homes directly. These often offer a fast and convenient sale, though offers are typically lower than a traditional sale. Selling yourself (FSBO) requires a significant effort in marketing, negotiations, and legal aspects. This can save on agent commissions, but typically results in a lower sale price. Set Realistic Expectations Understanding the current market conditions and setting realistic expectations can prevent disappointments. Today’s market is not like the one in 2021-2022! If working with a professional, discuss your goals with your real estate agent and be prepared to make changes based on what’s happening locally. Simplify the Process Consider decluttering and staging your home early in the process. A well-presented home can attract buyers more quickly, reducing the time your home is on the market. Additionally, having all necessary documents organized and ready can expedite the closing process. Final Thoughts Selling a home is undoubtedly an emotional experience. However, understanding the factors that contribute to this stress and implementing strategies to manage it makes the process more manageable. By planning ahead and setting realistic expectations you can navigate the home selling journey with greater ease and confidence.
How to Maximize Your Home Sale Profits
Let’s face it—between repairs, closing costs and commissions, the costs associated with selling your house can add up fast. Case in point: homeowners reported spending $54,616 when selling their homes, according to a recent survey from Clever Real Estate—an amount that was surprising to 42%. Despite the costs, the majority (64%) made a profit on the sale of their home, with the median profit totaling $100,000. With the right strategy, you can maximize your profits and minimize regrets. In fact, the study also showed that sellers who worked with a real estate agent walked away with an average of $34,000 more than those who went it alone. That’s a pretty compelling argument for having a pro in your corner! Rather than just taking my word for it, let’s dive into: The costs associated with selling a home Regrets home sellers reported How you can avoid common mistakes The Cost of Selling a Home Selling a home at the highest possible price involves various costs. Here’s what survey respondents said they paid for, on average: Listing agent commission: $11,136 Buyer's agent commission: $10,467 Repairs: $10,000 Closing costs: $8,000 Concessions: $7,200 Moving expenses: $3,250 Marketing: $2,300 Staging: $2,263 Keep in mind that every transaction is different—some of these costs are negotiable (like agent commissions), some may not be needed for every property, and some could be lower or higher based on the condition of the home or what’s happening in the local market. Common Regrets of Home Sellers Regret was a common sentiment among home sellers who participated in the survey, with 89% expressing some sort of regret post-sale, including 92% of those who sold without an agent. The most common regrets about the home selling process included: Selling too quickly (30%) They miss their old home (29%) Not selling for enough money (28%) Not making enough pre-listing repairs (26%) Making too many concessions (26%) Failing to stage the home (25%) Now, let’s get into something I’m really passionate about—the regrets home sellers had about their agent. Half of those surveyed say their agent “failed them” in some way. This is why who you work with matters so much. Here’s what respondents had to say about their agent: Agent's advice let them down (57%) Agent made mistakes with their listing (53%) Agent didn't communicate enough (50%) So, with all these regrets floating around, how can you make sure these things don’t happen to you? How to Maximize Your Home Sale Making the most of your home sale starts with working with the right real estate agent (remember, agents help homeowners get an additional $34,000 for their home sales). I always encourage sellers to interview at least two agents, because when it comes to selling your biggest asset, having the right professional by your side is critical. That’s why I also recommend home buyers meet with more than one mortgage lender. “Mistakes People Make When Securing a Mortgage Loan,” When interviewing agents, look for the following: Find a Professional: Look for an agent with deep knowledge about the local market, strong negotiation skills and a solid marketing plan. Check References and Reviews: Ask for references and read online reviews to ensure the agent has a history of satisfied clients. Discuss Your Goals and Expectations: Make sure your agent understands your goals and priorities for the sale. In addition, be sure to ask about their communication plan. Evaluate Their Marketing Plan: A good agent will have a comprehensive marketing strategy to attract potential buyers, including online listings, social media promotion, and professional photography. Understand Commission Structure: Discuss the commission upfront to avoid any surprises later. Once you find a real estate agent you are confident with, work with them to learn what type of repairs or staging will make a difference. They will be able to walk you through the process and provide guidance on what matters most to buyers. The Bottom Line Selling your home comes with a series of big decisions. A real estate agent is your partner in the process, and their expertise can mean the difference between tens of thousands of dollars in your pocket. For a free consultation or discovery call to chat about your goals, connect with me
Why Buying a New Construction Home Could Be Your Best Move
You may have noticed an uptick in construction and newly built homes. But it’s not just a trend we’re seeing here in Fort Lauderdale. In fact, about one-third of single-family homes for sale today are newly constructed, a dramatic increase from pre-pandemic levels. Let's dive into why new construction homes are dominating the market and what you should keep in mind if you're thinking about buying one. The Rise of New Construction Homes Since 2019, the landscape of the real estate market has shifted significantly. Remote work, low mortgage rates, and increased demand for homes prompted builders to ramp up construction. Even as demand has slightly cooled and mortgage rates have risen, new builds continue to play a crucial role in the housing market. Nationally, newly built homes made up 33.4% of the market in Q1 2024 according to Redfin—a trend that's holding steady. Why New Construction Homes Are in High Demand Limited Supply of Existing Homes Builders are constructing about 1 million single-family homes a year. At the same time, many homeowners are reluctant to sell their existing homes due, in part, to high mortgage rates. Robert Dietz, chief economist at the National Association of Home Builders (NAHB), explained, “The level of resale inventory has shrunk.” With a smaller number of existing homes on the market, new construction takes up a bigger portion of the total housing inventory. Buyers today are exploring all their options, from fixer-uppers to renovated properties to new construction. Attractive Pricing and Incentives Builders are inclined to sell their inventory and are often more flexible with pricing than individual home sellers. To attract buyers, they frequently offer incentives such as mortgage rate buy-downs, price cuts, and covering closing costs. In addition, new homes are becoming more affordable compared to existing ones. According to the U.S. Census Bureau, the median sale price for new houses in March was $430,700, only 4% higher than the median price of existing homes. This price gap is significantly smaller than in pre-pandemic times, when new homes were priced over 40% higher. Matthew Walsh, assistant director and economist at Moody’s Analytics, told CNBC, “Prices are much closer to parity than during any point in the last three decades.” What does this mean for you as a buyer? While some buyers believe newly built homes are too expensive—or too much of a hassle—new construction does offer some unique advantages: More flexible pricing: Unlike traditional home sellers, builders may be more willing to negotiate on price, offer concessions like closing cost assistance, or even include upgrades as incentives. The latest features and energy efficiency: New homes are built to meet the latest building codes and often come with modern features that can save you money on utilities in the long run. Less maintenance: Brand new homes come with the benefit of not needing immediate repairs or renovations. You can move right in and enjoy your new space! Things to Consider Before You Buy Although new construction offers some great benefits, there are also some things to keep in mind: Wait times: New construction homes aren't always move-in ready. Depending on the stage of construction, you may have to wait several months before you can close on the house. Limited space: Over the past few years, builders have been building smaller homes to help offset the costs of construction and help with affordability challenges. According to the NAHB, the median new single-family home was 2,156 square feet in Q4 2023, the lowest reading since 2010. Future costs: Property taxes on new builds are often based on estimates and can increase significantly after the first year. Be sure to factor this into your budget. Final Thoughts With one-third of the market consisting of new builds, there are ample opportunities for buyers to find a home that meets their needs. While there are unique considerations when buying new construction, the benefits often outweigh the challenges. From modern amenities and energy efficiency to customization options and attractive incentives, a newly built home could be the perfect fit for your next move.
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