CNBC reports that the housing shortage may be easing up.
It cites data from Realtor.com that in June, new listings of houses for sale increased in general by 10.9 percent compared to May and 5.5 percent compared to June 2020.
Cities with the highest increases in housing supply include Milwaukee with listings rising by 45 percent, and San Jose, California with 41 percent more houses for sale.
Following them were Cleveland with a 38 percent increase; Phoenix with a 28 percent increase; and Columbus, Ohio with a 26 percent increase.
Heads Up to Sellers
For homeowners who are planning to sell their homes, this means more competition in the market.
Buyers have more available houses to choose from through many sources like Grandview Homes.
It is, therefore, important to ensure that the house stands out and entices would-be buyers.
You can no longer sell a house in disrepair and expect buyers to snap it up with no contingency clauses to back out when valuation proves that it has a lower worth.
There are still enough eager buyers in the market, though, to ensure a sale once your house is market-ready.
Supply is still not too high and mortgage rates are still at historically low levels.
It is still a good time to sell your house.
The increase in the number of houses for sale will also enable you to find the house you want to move to as you sell your current one.
The Value of Curb Appeal
The curb appeal or the external look of a home is what homebuyers first see and this first impression makes a huge impact.
A study by the University of Texas at Arlington (UTA) published in The Journal of Real Estate Finance and Economics found that in residential housing, curb appeal can increase the selling price of a home by as much as seven percent.
Sriram Villupuram, director of the UTA College of Business’ Ryan Reilly Center for Urban Land Utilization and lead of the study, said that curb appeal can raise the selling price by as much as 14 percent when the residential market is cold.
Based on a median selling price of $299,000 the increase can amount to a minimum of $20,930.
The Most Profitable Improvements
Most of the improvements that result in a high return on investment (ROI) are, therefore, exterior renovations. Zonda Media’s 2021 Cost vs. Value report shows that 11 out of the top 12 home renovation projects with the highest ROI improve the exterior of a home.
For instance, 93.8 percent of the cost of replacing a garage door can be recouped upon resale.
Investing in sidings is also profitable, with 68.3 percent to 92.1 percent ROI.
The highest returns come with a veneer of manufactured stone, followed by fiber cement and vinyl. Window replacements earn from 67.4 percent to 68.6 percent ROI.
Vinyl windows have a higher return compared to wood. Adding a deck produces an ROI from 63.2 percent to 65.8 percent.
A wooden deck has higher returns than a composite one.
The entrance to the home, of course, has a major impact. A steel door gets a 65 percent ROI while a fiberglass entrance door gets a 60.9 percent ROI.
Replacing roofing with asphalt shingles will earn a 60.7 percent ROI.
Other outdoor improvements that will make your house look impressive include putting up an aluminum fence.
This looks elegant but is also low maintenance and will not need repainting, a definite plus for buyers.
The landscaping inside the fence can also raise the price of a home from one to 10 percent, based on a survey of real estate agents.
Make sure the lawn inside the fence is healthy and mowed, with any hedges and trees well-trimmed.
Adding potted annual flowering plants by the entrance and in window boxes or hanging planters will make the house look attractive.
Use plants that are easy to care for so as not to scare away those who do not have a green thumb.
Power-wash the exterior of the home, including windows, driveways, and walkways. Make sure the roof gutter is in good condition and clear of debris.
If there is peeling paint anywhere, it is time to repaint. Replace lighting with more stylish ones.
Staging Your House to Upsell
Indoors, focus on repairs rather than renovations. Buyers will want to do any major changes based on their own preferences.
You must, however, make sure there are no broken cabinet doors, drawers, handles, faucets, and lights.
It is also best to upgrade the lights to better-looking ones. Repaint the house a soft neutral color like cream to make it look more spacious.
Before scheduling showings, do a deep cleaning throughout the house, including the attic and the basement if you have these.
Make sure curtains, including shower curtains, and bed linen are fresh.
Remove clutter and personal items so that the buyer can imagine themselves living in the home.
Imagine yourself as the buyer going through the house.
This is not difficult to do because if you are selling your house, then you are also on the lookout to buy the house you will be moving to.
Hopefully, these tips help you to decide which improvement is better for you.
However, if you don’t have the budget to start investing in the sale of your property, you must be aware of the possibility to sell your house in its current condition, you can do this by selling directly to a real estate investor like Your Trusted Home Buyer.