If you’ve looked at listings of Columbia SC homes for sale, no doubt you’ve seen a variety of homes on the market – some that have been prepped for sale and others that probably shouldn’t be listed yet. Ultimately, how your home is presented for sale will determine whether it will sell in a timely manner and at a good price. Let’s take a closer look at several steps you should take before you decide to try and sell Columbia SC homes and do so in a timely manner.
To properly sell your house takes the right combination of preparation, time and patience. If you’re a first-time home seller the process can be a little overwhelming, but it’s not a daunting task if you know what to do to get your home ready to put on the market. Observe these tips as you prepare to sell Columbia SC homes:
Know Your Home’s Value
In today’s “information age,” there’s really little excuse for having a pretty good idea of what your home is worth. Online websites like ours provide good information regarding your home’s value based on estimates of comparable sales data of homes for sale that are similar in size, location and age. Most websites are easy to navigate and offer users the opportunity to see recent real estate sales in the market categorized by zip codes, neighborhoods and sales price ranges. One tip: Be sure to concentrate only on actual sales prices versus listing or asking prices. In addition, give consideration to what it would cost to perform needed repairs, upgrades, or improvements and factor those deductions into your home’s value.
Visiting this or other real estate websites will give you at least a ballpark idea of what your home is worth compared to others on the market when thinking about how best to sell Columbia SC homes. You can then use this information prior to discussing sales price strategy with a real estate professional – or negotiating with a prospective purchaser.
Have Your Paperwork Ready
To ensure the smoothest sale and closing transaction experience, it’s best to anticipate paperwork needs and be prepared. Experts say you should be aware of any existing title issues when you get ready to sell your house, including any outstanding liens, mechanic’s liens, or unpaid property taxes. Gather pertinent information concerning the ownership of your home including lending documents, the previous home inspection, and pest control inspection report. Also, in order to convey a clear, marketable title to the purchasers of your home, make sure you have a death certificate, will, or affidavit of heirship if the home is in a deceased person’s name. In addition, in the case of shared ownership, have the written consent of all owners – and any additional paperwork or documentation that may be relevant to the home and your ability to sell it smoothly and quickly.
Select the Method of Sale
The decision to sell Columbia SC homes should include choosing the method of sale that best suits your needs. As the home seller, you can retain the services of a real estate professional to list your home and put it on the market. Using a real estate agent is a popular choice for home sellers who want to place their faith in the hands of a professional real estate salesperson, trained and experienced in selling homes for a living. It’s also a good choice for sellers who want to capitalize on the highest value their home can command and those who can afford to wait a few months, if necessary, to consummate the sale. Having your home in tip-top shape is key in having it listed by a professional real estate agent. They deal in attracting residential buyers serious about making a purchase. So, a property in optimum shape will likely get the most attention and the most prospects. If there are repairs or upgrades required you can always list the property and note the items you are willing to pay for or have completed prior to the closing of the sale.
Conversely, you can choose to sell your home directly by “For Sale by Owner,” in which case you’ll be responsible for coordinating and scheduling showings, fielding phone calls and other inquiries and marketing your home for sale in all the normal and traditional channels.
As a third alternative, you can consider selling your home directly to an investor – especially if your property needs extensive repairs, or if you need to sell it quickly for various reasons. Investors who purchase property tend to pay cash, are ready to close relatively quickly to bring the property to proper standards if they plan to rent it out, or improve the house and try to then resell it at a profit, a practice known as “flipping” a home. Lastly, anyone choosing to sell Columbia SC homes to an investor needs to be aware they are usually skilled negotiators and may have a better idea of what your property is worth than you do. So, be smart. Negotiate items like closing costs or other costs if you can. You may want to make a quick sale, but be careful not to leave too much money on the table, if at all possible.
Clean up, Straighten up and Keep it Neat
Although this particular tip for listing your house among the homes for sale seems like a “no-brainer,” you’d be surprised at how often it’s overlooked. Make sure your house and yard are tidy, neat and clean to make them more presentable to prospective buyers. The home shoppers visiting your house will perceive the home as more valuable in a clean, organized condition. In addition, having “a place for everything and everything in its place” will promote the perception the house is well-maintained and the sellers have an eye for detail. This perception will likely make the home more attractive to like-minded purchasers.
See more articles pertaining to ways to sell Columbia SC homes in the two sections of articles on Columbia SC Home Selling Tips and Columbia SC Homes for Sale just below Columbia SC Real Estate Categories in the column to your right.
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The Columbia SC mortgage outlook is expected to include higher interest rates for 2017. The Federal Reserve’s recent short-term interest rate hike was both highly anticipated and expectedly minimal. And, while the fed funds interest rate has little direct correlation to longer-term mortgage interest rates, there has been – and may continue to be – a slight upward movement in rates for home loans.
Even prior to the Federal Reserve’s action, the average interest rate for conventional 30-year fixed rate mortgages increased after the recent presidential election. The rate hike saw record-low mortgage rates increase on average from a half to three-quarters of a percent. Post-election stock market activity meant investors were bullish on stocks and less interested in the bond market. Since long-term mortgage rates are more closely tied to the 10-year yield of U.S. Treasury bonds, rates rose as bond market investments declined.
A burning question exists, however, as to whether the Columbia SC mortgage outlook of rising rates will really make much difference to the housing market in 2017. The reason for the question is simple: Increasing rates, as exhibited by the Federal Reserve, are indicators of a stronger national economy – and a stronger economy historically favors the housing industry.
In addition, as one economist with Fannie Mae pointed out, “If interest rates are rising because the economy is growing more rapidly, then typically, incomes also rise, and the rising incomes offset the increase in the size of the mortgage payment…”
The unknown factor, however, tends to be largely intangible – buying a home is one of the most emotional purchases an American consumer will likely make. In a recent survey published by real estate brokerage firm Berkshire Hathaway HomeServices, 76% of existing homeowners and 79% of potential homeowners mentioned higher interest rates as a major challenge for the existing housing market. Even more significant is that each of those statistics reflect increases of 16% and 8%, respectively, from the same period of time in 2015.
The report also revealed the anxiety of a larger number of owners and prospective buyers would increase if the Columbia SC mortgage outlook were to include further rate increases. The lesson here is that when it comes to housing, perception is reality. Case in point: Interest rates are still within 1% of all-time historic lows, but to many potential buyers – especially first-timers – it may not seem that way, in light of the recent attention rate increases have received.
Still, in the face of recent increases there are real estate experts who feel rates won’t climb much higher in 2017. Redfin, for example, predicts rates will likely reach no higher than 4.3% for a 30-year fixed rate mortgage. In addition, they expect an ever-improving credit market, citing large financial institutions like Bank of America, Wells Fargo, JP Morgan and Quicken, who in 2016 offered mortgage loans with just 1% – 3% down. Redfin says these and other programs will attract more millennials and first-time buyers into the U.S. housing market in 2017.
In addition, to further highlight the intangible impact the Columbia SC mortgage outlook may have on the home buying public, Zillow offers this recent finding. In a survey of consumer housing trends, Zillow says home purchases were more closely tied to a consumer’s overall financial health than to any interest rate changes. They found certain life events – like employment changes, promotions, job-loss, or a change in the household make-up were more impactful factors affecting a home purchase. As a result, Zillow says, while there is naturally concern over the part of prospective homebuyers about rising interest rates, they are quick to realize that by historical standards the cost of borrowing money today for a home mortgage is very low. Lastly, while rate increases may have an impact on where they buy or the size home they buy, most purchasers are committed to entering the housing market once they elect to do so.
Of concern to many experts is the affordability factor that appears to be weakening – especially among first-time home buyers. Year over year – from 2015 to 2016 – the number of available homes for the average first-time buyer dropped over 12% according to Trulia. Other Trulia findings show that while premium or higher-end homes comprise roughly 50% of available listings nationwide, starter homes – attractive to first-timers – make up only 25% of listings. In addition, first-time buyers are expected to spend roughly 39% of their monthly income to afford a home, compared to 37% in 2015.
Finally, as we analyze the Columbia SC mortgage outlook for 2017, one continuing concern lingers in the housing market – available inventory. Experts say the biggest obstacle facing a strong spring housing market won’t be higher interest rates, but a lack of home supply. Real estate listings throughout the U.S. fell in 2016 compared to 2015 with little sign of improving enough during 2017 to impact the spring. Sales increases, quite simply, are dependent on housing supply – and one can’t occur without the other. While the new-home market is on the rise, homebuilders have still been unable to keep up with the demand for new housing, and housing starts have been lower than usual. In addition, homeowners who would normally be selling their homes to move into larger, better or more expensive homes aren’t moving as they once did. Experts say a typical homeowner stays in their existing home twice as long as they did just 15 short years ago. Increased interest rates will likely continue this trend as consumers won't sell their homes unless they have another home to buy – and probably will be less likely to pay more for the financing than they currently pay for their lower-rate mortgages.
In summary, the Columbia SC mortgage outlook seems to be less about rising rates and move about other factors – some that are intangible like financial well-being – and others that are more practical like home inventory and new- and existing-home supply from which to choose.
You can find more articles pertaining to the Columbia SC mortgage outlook in the "Columbia SC Mortgage Info" section of articles just below Columbia SC Real Estate Categories in the column to your right.
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In examining Columbia SC real estate trends, at first glance some statistics are difficult to understand. For example, when it comes to homebuilder confidence in the December report recently released by the National Association of Home Builders (NAHB) the number reflects the highest confidence level since 2005 – a period of 11 years! In addition, the one-month move was cited as the largest in 20 years – attributed, in part, at least to the post-presidential election optimism on behalf of many NAHB insiders. Confusingly, just a day later monthly reported statistics on home construction published by the U.S. Census Bureau showed a drop of nearly 19%. The bottom line, at least on the surface, is the nation’s homebuilders are very happy and extremely optimistic, but not enough to build more single-family homes in the current market. As mentioned, the numbers – and the concepts – seem difficult to understand. Let’s take a closer look at what may be at the root of the confusion.
Experts say the two sets of numbers – builder confidence and home construction – once tracked closely together. However, in 2012 during the depths of the worst housing crash in history, the numbers seemed to distance themselves from each other – having less correlation than they once did. While builder and consumer optimism started its steady recovery, the actual homebuilding market continued to suffer. Some experts offer the theory that it was simply the result of a basic business psychology – and a little human nature. Homebuilders, because they are entrepreneurs at their core, were more optimistic during the recession than the market may have reflected. This optimism, some argue, is necessary and expected – homebuilders lacking optimism about the market’s future would’ve had to consider another profession for their livelihood. Simply put, it’s difficult – if not impossible – to be in a business and not be one of its biggest supporting cheerleaders. Still, too, some insiders say the monthly builders' sentiment published by the NAHB is slanted more towards the smaller, custom homebuilder and, as a result, the data is somewhat skewed. The NAHB website cites its surveys as being comprised of three component parts: current sales, expected sales over the next six months and current buyer traffic. The NAHB says the survey is a “weighted average of separate… indices for these three key single-family series.”
Some experts familiar with both the NAHB and other independent surveys say with different weighting the findings can favor the larger-volume nationally-known builders. One such survey, published by a well-known real estate consulting firm issued this opinion: “We asked the same three questions that the NAHB asks at the same time of 311 homebuilders overseeing 11 percent of all U.S. new home sales. Builders told us sales and expected sales are better than average, and traffic is slightly worse than average. Since the builder responses were virtually identical to the responses last month and last year, and this survey is weighted 59 percent to actual sales rather than sales expectations and buyer traffic, (we are) surprised by the sharp increase in the [NAHB] index.”
Homebuilder confidence as part of Columbia SC real estate trends, as it turns out, cannot only be portrayed in different ways, it is also very subjective. For example, one expert contends, if you consider the results of the NAHB survey and include surveys from businesses asking them if conditions are the same, worse or better in the face of the recent presidential election, you may find that the results are indications of the “direction” of change, not the “degree" – in other words, qualitative and not quantitative. Quantitative analysis can only be measured after the fact and typically has little to do with theory or anticipated results.
So, as it relates to Columbia SC real estate trends, there seems to be a much higher demand for housing compared to the existing supply of homes for sale in inventory. This fact on its own makes homebuilders more confident. It’s always nice to know any product you are manufacturing has both a built-in demand and one that is underserved. Of course, this trend has been in existence largely since the start of 2016 or earlier. But even more telling is that the overall U.S. economy has and is continuing to improve – and a number of business sectors throughout the nation are very optimistic that a Trump administration will mean great improvement. With that, the nagging question still remains: “If all that’s true, why aren’t homebuilders constructing more houses than ever before as part of Columbia SC real estate trends?” The answer, as usual, boils down to the basics. Check them out:
Homebuilders continue to be thwarted by a myriad of new regulations that end up costing as much as 25% of the price of a newly constructed home. In addition, labor shortages – nothing new in the new construction industry – continue to weigh heavily on homebuilders’ abilities to gear up to the degree they’d need to to meet the existing demand. Ironically, the labor shortage – primarily because it relies on a large number of immigrant workers – may continue during the upcoming Trump administration. Other factors holding builders back include the high costs of land and building materials – with little relief in sight – as there are fewer finished, construction-ready lots in the neighborhoods and subdivisions in which buyers want to live or move into. Then, there's the whole feeling of cautious optimism that comes as a result of previous housing industry setbacks – and most homebuilders are very cautious after enduring the severe housing crash of a few years ago. Lastly, as a homebuilder operating purely on a business level dealing with supply and demand and the proverbial bottom line of making a profit, by building fewer homes in a market – largely called a seller’s market – they can command a higher sales price for the homes they build, and that's one of the Columbia SC real estate trends that's hard to ignore.
See more articles pertaining to Columbia SC real estate trends in the section of articles on Columbia SC Real Estate just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
The Columbia SC housing and economic outlook for 2017 seems to be filled with nagging questions about how gradually increasing interest rates may affect the continued improvement of the housing market. While interest rates have edged slightly upward in the last several weeks – most notably in response to the stock market's post-election gain – home mortgage rates are still comparatively low. But for how much longer? An extended period of rising rates may paralyze homeowners with low rate mortgages who would otherwise potentially be in the market to buy bigger or newer homes. Economists call such market conditions "rate lock," which could take a toll on housing demand during 2017.
The past Columbia SC housing outlook has enjoyed a seven-year run of near record low mortgage interest rates. That has encouraged homebuying and has increased home values dramatically since the housing crash of nearly a decade ago. Yet, the aforementioned increase in mortgage rates since the election has real estate professionals and prospective homebuyers a little on edge. Higher interest rates, of course, translate to higher monthly mortgage payments. That can cause existing homeowners to stay in their homes a little longer rather than trading up. As one real estate professional put it, "It doesn't take much to turn off the faucet in this market because inventory is so low and prices have gone up so quickly." The most recent mortgage interest rate increase boosted the monthly cost of owning a typical home in United States by slightly more than $70 per month. That equates to roughly $26,000 over the term of a 30-year fixed rate mortgage loan. While $70 per month is not a substantial amount, it probably has already had an impact on marginal borrowers concerned about additional expenses. Experts fear another half-point rate increase could impact even the more qualified borrowers.
In addition to the affordability aspect and the psychological impact that a higher monthly payment may have on a family purchasing a home, mortgage qualification may also become an issue. The Columbia SC housing market has already seen some households who spend 35% or more of its income on mortgage payments. Most experts recommend that debt-to-income ratios fall between the 30% to 33% range. As interest rates rise, the debt-to-income ratio will be strained causing some lenders to reconsider whether a borrower may qualify or not.
According to CoreLogic, Inc., roughly 66% of homeowners in the United States who have mortgages enjoy rates less than 4.5%. Economists say rates would probably need to increase above 5% before homeowners face the "rate lock" dilemma mentioned earlier. And that's where the concern begins to form. Because of the strengthening U.S. economy, the Federal Reserve will likely increase short-term interest rates this month. While the rates on Fed funds have no direct correlation to mortgage interest rates, an increase by the Federal Reserve would likely send a message that interest rates in general will likely rise – even if only slightly. Home mortgage interest rates are more closely tied to the yields on U.S. Treasury bonds. Those yields usually rise during inflationary periods, and while economists predict mortgage rates will increase in 2017, nobody really owns the proverbial "crystal ball."
Interest rates have risen largely due to the improved economy. In addition, investors are gambling that increased government infrastructure spending along with resultant tax cuts will continue to accelerate growth. The underlying hope is that the additional growth will spur increased wage growth, and higher wages should offset the increases in higher mortgage payments. However, one economist warns that since so many American homeowners have low rates on their mortgages, it could result in an ironic disincentive by encouraging homeowners to pursue employment in other cities if it means their mortgage payments will be higher.
So, what does all this mean for the Columbia SC housing outlook moving forward? If history is any indication, rising interest rates can impact the economy quickly and dramatically. Mortgage interest rates in 2013 increased almost a full percentage point to 4.5% on the heels of investor predictions the Federal Reserve would decrease its bond buying program. The result was a decline of 8% on the sales of previously owned homes over the next six months. In addition, sales price increases dropped from an average of 9% to roughly 5%. Therefore, if 2013 is any indication the market could potentially experience a cooldown in home prices.
Of course, it remains to be seen what affect increased interest rates – if they do occur – will have on the Columbia SC housing market and the resulting economic outlook. However, one thing to remember is that even interest rates in the 5% range still are relatively low when compared to other times in American history. Naturally, home prices continue to rise, meaning mortgage loan amounts are higher than ever before. However, going forward there is light at the end of the tunnel when it comes to home affordability. History has proven more times than not that even in the face of housing challenges home affordability is a luxury still readily available to most Americans. Whether it's more affordable mortgage products with more favorable terms and conditions or more affordable housing units entering the market, the bottom line is that housing is too big a piece of the U.S. and world economy to be adversely affected for long.
We've weathered such storms before and with the exception of the housing crash of a decade ago, the industry has rebounded steadily and has learned from its mistakes. Time will tell if the slight interest rate increases will lead to a slowdown of the housing recovery, or if it will provide the impetus for creative lending, improved mortgage products, more affordable housing and sufficient motivation for first-time homebuyers to buy. While the challenges can be daunting, the industry remains hopeful that only slight interest rate increases will occur, resulting in minor fallout that can be absorbed by the market through greater home inventory and a continued steady demand.
You can find more articles pertaining to the Columbia SC housing outlook in the "Columbia SC Economy" section of articles just below Columbia SC Real Estate Categories in the column to your right.
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Selling your home in winter can be one of the most successful Columbia SC home selling strategies you can employ. Recent data provided by Redfin confirms listing your home during the winter can actually mean a faster sale and a higher price. One main reason is there are fewer homes on the market during the winter months, because most sellers wait until the more popular spring and summer months to list.
Let's take a look at the Redfin data and see how it supports one of the best Columbia SC home selling strategies that can be utilized.
The Redfin information includes the percentage of homes that sell higher than the initial asking price and go under contract within the first 30 days. Interestingly, the findings show a higher percentage of offers above the asking price occur in winter than summer and fall. In addition, they are competitive with the more traditional spring home purchases. Furthermore, homes that sell in the winter don't stay on the market as long as homes in the summer and fall. A total of 46.2% don't last 30 days on the market, while only 23.7% of U.S. homes for sale are on the market during the winter months. This compares to 32.6% of homes for sale in the spring and 26.7% of homes for sale in the fall.
Conventional wisdom has always pushed the idea that winter was not a good time to list your home. However, that's not always the case. While there may be fewer homebuyers looking during that time of year, the ones that are in the market are serious. In addition, buyers looking in the winter often need to move, so they are usually less likely to make unrealistic offers and typically want to close the sale as quickly as possible. These two characteristics are attractive for any home seller.
As part of the Columbia SC home selling strategies employed by savvy sellers, winter or off-season purchasing can be advantageous. Since home shoppers may be fewer in the winter, homes on the market can often sit unsold longer. This makes for motivated sellers, which is good for a serious buyer.
While going against the grain in trying to sell a home in the winter is seen as a potentially good idea, it's not a no-brainer. There still are challenges that need to be overcome. One real estate professional shared her view on including winter selling among Columbia SC home selling strategies: "There are pros and cons to selling a home in the winter. There does tend to be less competition around the holidays, but it could work to the seller's advantage in that their property may have more interest than when the market is more saturated with other homes."
Another advantage in selling a home during the winter is that real estate agents usually have more time to give their clients, and may be more dedicated to selling a property than when they're consumed with having a number of listings competing for their attention.
As far as one of the best months to list your home, some experts say early January is key. The reason? Many sellers target the spring market as their starting period and plan accordingly. Buyers, however, seem to be much more ready and responsive to looking at home options well before the start of spring. As such, mid-January and early February listings seem to perform very well.
So, here's the proverbial bottom line when it comes to employing Columbia SC home selling strategies that include listing your home during the winter. If you need to sell your home in the winter don't let the cold temperatures prevent you from doing so. The perception may be that winter is a bad time to buy or sell a home but, of course, that is dependent upon where you live and how severe the winter weather is. In parts of the country that have milder winters or breaks in winter storm activity, listing your home then could be a smart move and a successful one.
An experienced real estate professional added this important caveat,”For most areas, although properties may not look as green and appealing as other times of year, that's not the whole picture. For both buyers and sellers, the competition is usually quite diminished, which can certainly work to your advantage. For buyers, less competition means they have a greater chance of getting the home they want without getting into a bidding war.”
As usual, the decision to sell your home comes down to your own personal choice. We recommend working with an experienced real estate agent who can guide you in the right direction should you choose to list your home in the winter. Providing the home buying market with winter inventory may just mean the difference between reaching a relatively captive audience and getting lost in the shuffle as other properties come on line in the more popular spring months. As a seller, you should ask yourself this question: “Am I better off showing my home to a smaller, more serious group of potential buyers during the winter when they are desirous of purchasing, or during the spring when both the supply of competitive homes as well as the demand of more buyers make for a more hectic marketplace?”
See more articles pertaining to Columbia SC home selling strategies in the two sections of articles on Columbia SC Home Selling Tips and Columbia SC Homes for Sale just below Columbia SC Real Estate Categories in the column to your right.
Remember, we also post tips daily on Twitter and Facebook. Check us out there, too.