Selling a property can seem like an overwhelming decision, particularly in a market like Richmond, Virginia where the market is ever-evolving. Knowing when to sell can be a confusing endeavor, but with a few helpful tips from an experienced real estate agent, you can make the best decision for your situation.
So when deciding whether or not to sell your home, there are 3 questions all sellers need to ask themselves —
First, does the home still fit your lifestyle? Maybe your family is growing, or your family is grown and now it is time to downsize!
Second, what type of real estate market are we in? Right now, the Richmond area is in a sellers market, which means there are lots of interested buyers out there, but a very limited amount of inventory available for the buyers!
Third, do you feel like you are ready to move on and are you willing to put in the work that may be needed to sell your home?
There are valid reasons to sell your home now, and there are valid reasons to consider staying put in your house!
WHY YOU SHOULD SELL YOUR HOME NOW!
There are plenty of good reasons why now may be the right time to sell your current home and move to another one!
First – You Need To Move!
Your family situation may have changed! You may have bought your home as a single person, but now you are married and have kids! Maybe your kids are now grown and the house is too big for you! Or you may now be working remotely from your home and you need a home office! Maybe you are being relocated to another city! There are many reasons why you may need to move, and if so, then this is a great time to sell your home!
Second – Your Current House May Need Costly Renovations and Repairs!
If your current home needs renovations, updates and repairs, it may also be a great time to move! Buyers are currently dealing with low inventory levels throughout the Richmond area, and because of this, they may be willing to overlook things like an outdated kitchen or bath, or even some minor cosmetic updates or small repairs – especially if it means they can now get into their preferred neighborhood!
Third – It is A Seller’s Market!
A seller’s market means that there are lots of buyers out there looking at the very few houses available on the market! In a seller’s market, it is not unusual for sellers to get cash offers, where a buyer is waiving all or most of the contingencies such as inspection and appraisal. It is also not unusual for a seller to get multiple offers on their house, many times leading to prices well above their asking price!
Fourth – You Are Concerned About The Future of the Real Estate Market!
There has been a lot of talk lately about the bank failures such as Silicon Valley Bank. This may lead to concern about whether or not banks will toughening up on the credit standards they use to make loans. Will this affect your ability to get a mortgage in the future? Will it affect a buyer’s ability to get a mortgage in the future? Will this pull some buyers out of the real estate market and cause a slow down in the real estate market? Those are questions we cannot answer today but they may be concerning to you! That may be a good reason to sell your home now, rather than waiting!
Fifth – You Are Concerned About When Prices Will Fall!
We have been very fortunate here in Central Virginia – prices in this area have continued to go up and homes continue to appreciate, even with the higher interest rates! But there are a lot of buyers and sellers out there who are concerned that we will go back into a 2008 crash where prices will drastically fall! I personally do not see us going into a 2008 crash, but I do think that there is going to come a time when our prices will decrease. Although prices continue to go up over the last 3 years, a look at how much they are going up by tells you that we are starting to see a bit of a slowdown:
- Average Sales Price in April 2021 (entire MLS): $352,679
- Average Sales Price in April 2022 (entire MLS): $403,244
- Average Sales Price in April 2023 (entire MLS): $403,643
- Average Sales Price in April 2021 (Richmond Metro only): $364,689
- Average Sales Price in April 2022 (Richmond Metro only): $415,646
- Average Sales Price in April 2023 (Richmond Metro only): $429,034
Why You Should Wait To Sell Your Home!
Just as there are some good reasons to sell your home now, there are also some good reasons to hold off and wait to sell your home!
First – You Are Unable To Afford The Current High Prices!
Prices are high, and interest rates are high! That means that the cost of owning a home could be significantly more than what you are anticipating! Between the cost of the house and the higher interest rates, the closing costs you may have to pay, the inability to negotiate with a seller – all of these things could end up giving you sticker shock! If that is the case, you should probably hold off on selling your current home!
Second – You Don’t Have A Lot of Equity In Your House!
In order to afford the higher prices, you may have to be in a position to be able to bring a larger amount of cash to the closing! If you don’t have a lot of equity in your current home, you may not be able to compete with the other buyers, or you may not be able to qualify for the higher payments! Holding off until prices come down, interest rates drop and you have more equity in your home may be a great reason to stay put!
Third – You Currently Have A Very Low Interest Rate!
If you refinanced a few years ago, you may have a very low interest rate (my interest rate is around 3%). Interest rates right now are around the 6% +/- range. That extra 3% (or more) in interest rates may make purchasing a new home now very unattractive, even if you don’t need to sell at this time!
Fourth – You Aren’t In Any Rush To Move!
If your current home suits your needs right now, and you don’t need to make a move, it may be better for you to stay where you are!
Fifth – Your Current Home Needs A Lot of Work!
If your home needs a lot of work to it, it is possible that a buyer may go ahead and buy your home because of the lack of inventory out there. But it may also be possible that if you price the home too high for the condition, a buyer may not be interested in buying your home. If the price that you would get for your home in it’s current condition is much less than what you feel you need to make a move, you may be better off staying where you are and making improvements over time!
The decision of when to sell your Richmond, Virginia house is a personal one. Knowing the value of your home, the current market conditions, and what your long-term goals are can help you make the best decision for your situation. You should base any decisions on whether or not it is the time to sell your home on what is right for you now, not what you think will happen in the future – after all, no one really knows what is going to happen with prices, interest rates, the market, etc. in the future! But with a qualified real estate agent on your side, you can make the most of the sale of your house and be confident in your decision.
If you have questions or you would like to sit down and find out about the real estate market and whether or not it is the right time to sell, feel free to connect with me and I would be happy to help! No obligation, no pressure!