While the Reno/Sparks housing market is considered to be a seller’s market—especially for those homes priced for less than $600,000—you may still feel hesitant to sell your home. You may be worried about finding a new home or addressing the condition of your current home. Maybe the process of selling one home and then finding a new place to live in quick succession has you a bit nervous. Or, perhaps you feel emotionally connected to your home and all the work you’ve put into it.
All of those feelings are extremely understandable. A home is one of the most significant investments you’ll make in your lifetime—both financially and emotionally. However, with Reno and Spark’s low inventory of houses, now is a prime time to sell your home. It’s also the time to address those fears, hesitations, and doubts, and prepare to sell your home. Here are some common reasons our neighborhood experts hear from potential sellers and how they address them.
4 reasons you may be scared to sell your home
“My home is where I’ve made so many memories. I’ve also invested in improving and customizing the property. I’m not ready to let it go.”
It’s normal to feel pangs of sadness when you think about selling a beloved home. But, those feelings could be holding you back from moving to a home that better suits your needs. One way to address those feelings is through gratitude. If you’ve watched an episode of Netflix’s hit show, “Tidying Up With Marie Kondo,” you’ve seen how Marie thanks the house at the beginning of each episode. Think about doing the same for your home. Thank it for all the beautiful memories, and release it to the next buyer who will have a chance to make new memories there.
“I feel sure my home will sell, but I don’t know what I would buy next! If the inventory is low, will I have enough time to find a new place to live?”
There’s no sugar-coating it. As of the beginning of February 2020, we had just 12 days of inventory for homes priced less than $300,000, and for homes in the range of $300,000 to $600,000, inventory is 29 days. The extremely low inventory is a challenge for buyers, but with little competition in the market, it’s a perfect time to sell a home in these price ranges.
Once you sell a home in one of those price ranges, any equity may allow you to purchase a home in a higher price range, where there is more inventory. The inventory of homes priced from $600,000 to $900,000 is 2.5 months, and the $900,000 to $1,500,000 price range is about 4 months. While all of these price ranges are still considered a seller’s market, there is still more supply than the lower price brackets.
For example, let’s say you purchased a home in the now-trendy Midtown Reno neighborhood. In 2015, you could have bought a two-bedroom, one-bathroom single-family home there for about $150,000 with an interest rate of about 4.5%. If you put down a 20% down-payment of $30,000 then, your payments have been about $600 per month for the past five years and the approximate loan balance would be about $107,000.
In 2020, you could theoretically sell that same home for about $385,000, and profit roughly $278,000 on the sale. Then, if you were to put that full amount toward a down-payment on a new home you could purchase a home in the $450,000 price range (which is about $50,000 more than the area’s median price and with current interest rates below 4%), your new mortgage payment would be just slightly higher than your old payment. There are many financing options available to suit nearly every chapter in your life. We strongly recommend meeting with a mortgage professional to help you find the right mortgage for your situation.
“My home needs some work, but I don’t want to spend the money. I’m worried that a buyer is going to want me to invest money in fixing things that I’ll never use.”
While buyers love a move-in-ready home and will pay more for a house in pristine condition, that doesn’t mean you have to fix everything. Remember, this is a seller’s market and everything is negotiable. Make a list of all the possible repairs and improvements you could do, and think about how urgent and vital they are to selling your home. You don’t have to figure it out alone; an experienced REALTOR, such as one of our Dickson Realty agents, can help you prioritize your project list to maximize the return on your investment.
Remember that big-tickets repairs, such as a new roof or HVAC system, can scare buyers and could cost more in concessions than it would actually cost to fix it. Those issues may be worth addressing before you go to market.
“I don’t have time to pack and move, let alone deal with the stress of selling my home!”
Selling your home can be stressful, but it can be less stressful with the right partners. Many of our Dickson Realty agents partner with service professionals and contractors to help their clients, such as home stagers, moving companies, or painting contractors, to help get a client’s home ready to sell. Ultimately, you need to ask yourself if a bit of short-term stress is worth a better investment in your future.
Ultimately, now might be the exact right time for you to sell your home. With low-interest rates and a seller’s market, several conditions are aligned in your favor. Not sure what to do next? We recommend reaching out to your professional real estate advisor at Dickson Realty to have a discussion about your goals and priorities.