There are so many incredible financial benefits to owning a home and to this day it is considered to be one of the safest long-term investments you can make. When you buy a home you almost immediately begin building equity, and you can also expect the property to increase in value over time as well. While there are various pros and cons in the debate of renting vs owning, one major benefit of being a homeowner is that if you live in the home long-term and eventually pay it off, you can look forward to living rent and payment-free when you get ready to retire. Home equity is not something to ignore as it is something that you can tap into if you need cash in an emergency situation, or it can even be a part of long-term retirement planning. 

Planning for retirement is extremely important – we all work very hard throughout our adult lives and it’s important that the work pays off during our Golden Years and that we can live happily and peacefully knowing our basic needs are taken care of. No matter what your financial plan for retirement entails all that matters is that you get started early and stay consistent with your contributions. There’s research and data out there that shows disappointing and scary statistics about individuals nearing retirement age who have less than $100,000 in savings. Even retirees who have been successful in saving and planning are still concerned about having enough because of the rising cost of medical care combined with increased life expectancy. A major component of wealth and retirement planning that is often forgotten about is home equity. There are various ways to factor in home equity into a retirement plan, but a reverse mortgage is a solid option that is ignored, and many retirees don’t know that it exists as a possibility or don’t understand how to take advantage of it. 

What is a Reverse Mortgage?

A reverse mortgage is a type of loan that allows the homeowner to withdraw a portion of their equity without having to repay the loan until they leave the house. One of the most popular types of reverse mortgages available is the Home Equity Conversion Mortgage (HECM), which is insured by the federal government. A reverse mortgage is an opportunity for owners over the age of 62 who own their homes outright or have a considerable amount of equity to tap into. The most common question in regard to a reverse mortgage is why anyone would want to borrow against a home that they worked so hard to pay off – why wouldn’t a retiree want to stay in their home and live there debt free? Instead, seniors facing retirement are more concerned with how they are going to afford their existing lifestyle once they retire and will no longer be cashing a consistent paycheck. A reverse mortgage provides a solution to this issue so that this group of individuals can enjoy a more financially secure retirement as they age. 

So, who is eligible to apply for or receive a reverse mortgage? The primary homeowner must be at least 62 years old in order to apply. Additional eligibility criteria includes:

• You must own your home outright or have a single primary lien that you hope to borrow against. 
• If there is an existing mortgage, then it must be paid off using the proceeds from the reverse mortgage. 
• You must live in the home as your primary residence. 
• The borrower must be current on property taxes, homeowner’s insurance and any additional obligations like homeowner’s association dues. 
• The borrower will need to take part in a consumer information session that is led by a HUD-approved counselor. 
• The property will need to be well-maintained and kept in good working condition. 
• The property in question must be a single-family home, a multi-unit property with no more than four units, a manufactured home built after June 1976, a condominium or a townhouse. 

If the above requirements are fulfilled, then you will need to work with your lender to work through the process of getting a reverse mortgage. One important note to keep in mind is that even if the property is completely paid off, you may not be able to borrow the full value of the home. The amount you can borrow, which is also known as the principal limit, will vary based on the age of the youngest borrower, current interest rates, the value of the home and the mortgage limit set for a Home Equity Conversion Mortgage. In general, you are likely to receive a higher principal limit if you are older, if your home is worth more and if interest rates are low. Borrowers will also have the opportunity to choose a HECM with a variable or fixed interest rate. With a fixed rate you will receive a single lump sum payment. If you select a reverse mortgage with a variable rate, then you can choose to accept:

• Equal monthly payments
• Equal monthly payments for a pre-determined amount of time that is agreed upon ahead of time
• A combination of a line of credit and fixed monthly payments for as long as you live in the home
• A combination of a line of credit and fixed monthly payments for a pre-determined length of time

The money that is borrowed as a reverse mortgage does not need to be repaid until the borrower passes, moves out or leaves the property for any reason. 

If you are interested in applying for a reverse mortgage the application process is similar to that of a traditional home equity loan. If you meet the eligibility requirements then you can shop around for the best deal and work with a lender to assess how much you can borrow. 

Can a Reverse Mortgage Allow you to Retire Sooner?

Now that we’re all caught up on what a reverse mortgage is and what the requirements are to qualify, let’s talk about the benefits and how you can use it as a tool to plan for retirement. More often than not, a reverse mortgage is used as a quick fix for cash or a last resort if all else fails. This Hail Mary mentality can be easily avoided by working with a competent and responsible financial advisor who can put an organized plan in place that includes long-term care planning, improving cash flow, mitigating returns risks in the event of a market crash and providing peace of mind for your Golden Years. An important piece of advice to keep in mind is that most people have no idea what they next three or five years of their life will look like, much less the next 20 to 30 years, so it’s impossible to plan with an open-mind and be flexible so that you can handle whatever life throws your way. 

Older homeowners are currently finding that they are sitting on record levels of home equity, and even though the upfront costs of a reverse mortgage can be quite high, they are finding it to be a very valuable tool for retirement. The best way to utilize a reverse mortgage as a tool to plan for retirement is to make your monthly payments to pay down your mortgage and gain more equity in your home. When you buy your home, if you are absolutely certain that you will live in this property forever, then you can count on the equity you build as a source of wealth when you retire. If you are unsure whether you will need a bigger or smaller home, if there is a chance that you have to move for work or family, or if there’s another reason that forces you out of your home then you won’t be able to depend on the equity you’ve built as a way to retire sooner. 

Many of us dream of retiring early, and even though the average retirement age in the US is 63 years old there are many Americans who are able to retire even earlier with careful planning. By starting to save early, being disciplined and creative you may be able to reach your goal of retirement sooner than expected. At Brazos County Realty we pride ourselves on providing our clients with the information and resources they need to make a well-informed decision regarding real estate in the Bryan College Station area. If purchasing and investing in real estate is part of your retirement plan, then please don’t hesitate to tap into our knowledge and give us the opportunity to help you achieve your financial goals. Our team boasts years of experience working with buyers, sellers and investors locating unique opportunities at favorable prices. Please contact us if you’d like to learn more about our featured properties for sale, or if you would like to discuss your long-term goals for real estate and how this could help you plan for retirement. We look forward to hearing from you soon!

Whether you have lived in your home for 15+ years or only three years, surely you’ve gone through a couple of home improvement projects already. Maintaining a property is an expensive and time-consuming accomplishment, and one that will continue for as long as you remain a homeowner. There are certain home improvement projects that are very costly but can really add value to your home if you choose to sell one day. Then there are certain upgrades and projects that can actually take away from the value of your home. Do you know what the best home improvement projects are that can add value to your home? Do you know what the worst renovations attempting to add value to homes are? Below we’ve listed some of the most common projects that will not add value to your home.

• Swimming Pools

An in-ground swimming pool can cost you anywhere from $30,000 to more than $150,000 depending on the type of pool installed and the level of customization you choose. While installing a pool may seem like a great idea, it’s not an investment you should expect to see again if and when you sell your home. A swimming pool is an attractive feature to many buyers, but it’s a “nice-to-have” feature rather than an absolute necessity. If your home already came with a swimming pool, then it’s nothing to worry about, but if you are thinking about building one yourself then you need to remember that you will be adding in the pool for your own personal enjoyment rather than to add value to the home. In an area like Texas where we enjoy hot, humid summers you may be able to recoup at most 30% of your investment, but if you live anywhere else a swimming pool addition may actually decrease the value of your home. 

• Extremely High-End Kitchens

Kitchen remodels are actually strongly encouraged as a way to add value to your home, but you have to do it right in order to recoup your investment. While an ultra-high-end stove and top-of-the-line custom painted tiles may look incredible in your kitchen, they won’t pay off when you list your home for sale. If you are considering moving within three to five years and you would like to update your kitchen, it’s smarter to invest in quality, energy-efficient appliances and neutral finishes that will appeal to more people. In general, too much customization in a home will turn away potential buyers. Try to stay on par with the other homes in your neighborhood – if you install too many high-end upgrades then you will own the most expensive home on the block, which doesn’t necessarily translate into the highest sales price. 

• Jacuzzi Tubs

A nice, hot relaxing bath with swirling jets may sound very indulgent after a long workday, but it’s not something that a potential buyer will be willing to pay extra for. This is another one of those “nice-to-have” features that a buyer will enjoy, but it’s not a necessity. Additionally, the costs for installing a whirlpool or jacuzzi tub may be prohibitive – many homeowners will install a luxury tub only to discover that they need to invest in a larger hot water tank so that the tub will work properly. Furthermore, a tub will also result in higher energy bills and additional monthly maintenance costs. Think twice before installing a jacuzzi tub in your home – unless it’s a luxury that you are investing in for your own personal enjoyment. 

• Luxury Landscaping

Landscaping can really transform the way your house looks, especially to potential buyers who pay attention to curb appeal when they first visit. However, going over the top to create a backyard oasis will not add any extra money to your asking price. Indulging in landscaping that brings you joy is nice and something you should do if you plan to stay in your home for a while as it can improve your quality of life. However, if you are planning to sell your home the cost and expense of landscape design is not something you’ll be able to recoup in a sale. Instead of investing in expensive landscaping you can make small changes to your lawn to add curb appeal to your home. A well-maintained grassy area, subtle updates, trimmed shrubs, bright flowers and charming fixtures will really boost the “wow” factor of the front of a home. 

• Upgraded Utilities

If you spent thousands of dollars to install brand new copper plumbing throughout your house, replaced the sewer system or upgraded the electrical wiring it’s not likely that this will translate into a higher asking price if you choose to sell your home. These types of improvements are considered maintenance, and they’re important so that the home stays healthy and updated, but they are not a luxury that will bring in more buyers. If anything, you need to make these investments so that your home will remain competitive once it hits the market. You don’t want to be the only house on the street that still has outdated utilities – just don’t fool yourself into thinking that upgrading the equipment will allow you to mark up the price tag if you choose to sell. 

• New Roof or HVAC System

While a buyer will certainly appreciate a home that comes with a new roof or HVAC system, they won’t pay extra for it. Replacing a system or a roof that is faulty or past its life expectancy is considered a maintenance issue, not an upgrade. Besides, if the roof or HVAC system need to be replaced this will come up as an issue during a home inspection and you may end up having to pay for it anyway or risk falling out of escrow and moving on to another buyer. 

• Painting Your House

Painting can actually be a very cost-effective improvement that you can make before you sell your home, but it’s important to select the right colors – and maybe consider doing some of the work yourself to save some money. If you paint your home in outrageous colors, you’re more likely to turn away potential buyers. If you paint your home to fix peeling paint or to update the inside so it looks fresher and cleaner, then you are more likely to recoup your investment. 

• Outdated Décor Styles

If you are considering selling your home, try to stay away from any renovations that feature outdated décor styles. Simple renovations that are meant to spruce up the home so that it appeals to a bigger pool of buyers are strongly encouraged, but if you spend money to install gold-toned bathroom fixtures, white appliances or new carpet we would strongly advise against it. Décor trends change quite often, and you don’t want to discourage a potential buyer from considering your home if they are turned off by the outdated updates. 

• Solar Panels

Solar panels are a very trendy upgrade that brings in great savings and energy efficiency. While many salespeople who sell solar panels will tell you that installing them will increase your home’s value that is not necessarily true. A buyer will not want to shoulder the cost of an upgrade that you made – they may enjoy the convenience, but if the panels weren’t there, they’d probably be ok with paying regular pricing for electricity. Additionally, if you finance the solar panels you probably won’t be able to sell the home without fully paying off the balance at closing – this is not often disclosed. 

• New Wall-To-Wall Carpets

While a real estate listing may highlight “new carpeting throughout” as a selling point, a modern homebuyer may actually cringe at the idea of having wall-to-wall carpet throughout the entire property. Carpets are not as popular as they once were, and they are expensive to replace. If you are considering updating the floors in your home, rather than replacing or installing new carpet, consider restoring existing wood floors or even installing new wood or tile throughout for a more profitable investment. 

It can be difficult to imagine spending thousands of dollars on a home improvement project that will not be reflected in the value of your property when it comes time to sell. Many homeowners will justify the spend of an upgrade by looking forward to the extra money they can make once they sell. However, not every single improvement or upgrade will bring you a high return on the investment, if any at all. It’s important to distinguish between home improvement projects that you would really enjoy having for yourself, like a jacuzzi tub or backyard oasis, and one that would be an investment to attract paying buyers. It’s also important to realize that certain investments into your property, like upgrading plumbing, a roof or HVAC system, are not improvements that will bring you more cash – they are simply considered general maintenance to keep the home healthy and functioning at a certain standard. If you’re considering selling your Bryan-College Station home check out our tips for sellers, and contact us so we can help you prepare. 

Whether you are thinking of selling your home this year or in a couple of years, it’s always important to keep resale value in mind when deciding on any remodeling or renovation projects. There are many home improvement projects that may seem like a good idea but don’t add any value to your property, especially if the market is experiencing a slump. In fact, there are some improvements that can take away from your asking price if you do decide to sell. How do you know what the right projects are and what are the most important renovations to add value to your home? In this blog we’ll go over some of the most common home improvement projects that will make your home feel new again but will also bring you a decent return on your investment when the time comes to sell. 

• Kitchen Renovation

The kitchen is easily the most prominent room in a home, many people actually consider it to be the heart of the home. Think about it, you spend the majority of your time at home in or around your kitchen – it’s the control center of a family where everyone comes together to eat, talk and enjoy each other’s company. Because of this, updates to the kitchen and full renovations can majorly pay off if you decide to sell your home. According to HGTV you can expect to gain back somewhere between 60% – 120% of your investment if you do the remodel right without going overboard. With any renovation, it’s important to make sure that your space isn’t fancier than any of the comps in the neighborhood. Whether you choose to do a basic update or full-blown renovation entirely depends on you, but if you are planning on selling your home it wouldn’t be wise to invest in a super deluxe kitchen. Homes that go overboard on the renovations end up sitting on the market because the asking price is too high in comparison to the other homes for sale in the neighborhood and buyers are not willing to pay the price no matter how incredible the upgrades are. A kitchen remodel can cost you anywhere from $5,000 to more than $60,000! You can get the biggest bang for your buck with fresh paint, new flooring and energy efficient appliances. If you choose to alter the layout of the kitchen it will cost you more, but it is important to note that open concept floor plans are extremely popular and most modern homes feature a big kitchen space that opens up into the rest of the home allowing for great flow. Painting cabinets, adding new hardware, updating a backsplash and replacing the floor are all cosmetic changes that will really give an existing kitchen an incredible facelift. Replacing old appliances with newer, more energy efficient models will also attract more buyers once you are ready to sell your home. Look for Energy Star-rated appliances that are not only better for the environment, but also help you save money by using less energy.  

• Bathroom Remodel

Bathrooms are extremely important rooms in a home, and if your home only has one bathroom you may actually consider adding an extra one. If you add a bathroom to your home so that the bedroom and bathroom count is similar to other homes around you then you can recoup a large chunk of your investment – around 80% – 130% of what you spend. If you decide to add in a bathroom make sure to find a good place for it, work with an experienced contractor and get your plans approved and permitted before you begin on any work. If you decide to simply give a bathroom, or multiple bathrooms in your home an updated look the cost of the project largely depends on the materials and accessories you select. The cost of demolition is very low, but once you add in labor and the price of materials your bathroom remodel, depending on the size, could cost you anywhere between $7,000 and more than $25,000. Replacing bathroom floors with fresh tile, adding in an attention-grabbing mirror with cool light fixtures and painting the room will also make a big difference for potential buyers. 

• Invest in Energy-Efficient Windows

These days, buyers are looking for homes that offer numerous upgrades that provide the ultimate in energy efficiency. Old windows that are single-pane and drafty are a major turn off and could turn away many buyers. Energy Star-rated windows can save a homeowner up to $500 per year in cooling and heating costs by making the home more energy efficient, and it’s definitely something to take into consideration. Upgrading the windows in your home to Energy Star-rated windows could also qualify you for a green energy tax credit and additional credits from your state or utility company. The estimated cost of replacing windows in an average-sized home can cost between $7,500-$10,000 or more if the property has unique shaped windows. 

• New Garage Door

A good-looking garage door is at the top of the list when it comes to getting a good return on your investment if you decide to sell your house. A garage door is part of the overall curb appeal of a home, so you want to make sure that it doesn’t look grungy or like it’s falling apart. The average cost of this project is between $3,000-$4,000, and the estimate includes removing and disposing of an existing door and replacing it with a new one. This upgrade will almost certainly get you back almost every dollar you spent on it when you sell your home.

• Landscape Design

Curb appeal is so important when listing your home for sale – it’s the first thing that a buyer will notice when they walk up to see the house. You don’t need to invest in expensive landscape design, but it is important to keep the yard trimmed, fresh and clean. If you are considering landscape design and aren’t planning on selling for a few years, then you should absolutely go for it because it will pay off when you are ready to sell. Basic landscape design can cost you about $4,000, but when your yard is the envy of your neighbors, you’ll be very glad that you decided to go for it. A charming focal point like a walkway or a water feature also adds major value to your property. 

• Minor Exterior Improvements

There’s nothing more unappealing than peeling paint, a scuffed front door and curb appeal that isn’t well maintained. If you invest in basic exterior improvements like an updated front door, fresh coat of paint and fixing anything that needs to be updated or replaced you are likely to get a really good return on your investment at resale. Depending on your budget you can improve the look of your home by removing old awnings from windows and doors and to swap out old railings for real wood supports. If your home was painted before 1978 make sure to test for lead before sanding or scraping. 

• Add a Patio, Deck or Porch Addition

If you own a property with an expansive yard a wooden deck can be an awesome enhancement that allows you to enjoy the outdoors around your home. The average cost of adding a wooden deck is approximately $13,500, and you should be able to recoup 75% of this investment at the time of sale. You can really enhance this addition with decorative planters, nice deck chairs, a massive umbrella and an attractive outdoor dining set. 

• Basic Maintenance

If you’re not ready or willing to splurge on a big renovation you really don’t have to, but before you sell your home it is important to make sure it’s in the best shape possible. This means that even the most basic updates can add value to your home. Keep the paint fresh, fix the roof if it leaks, replace any wood that has dry rot and get rid of mold. These types of chores will not only keep your home from deteriorating over time, but buyers are looking to invest in a home that is healthy, solid and safe. Pride of ownership goes a long way, and any issues that could have been easily resolved will be uncovered by an inspection report anyway, so it’s best to take care of them as they come up. 

Remodeling your home will add to your enjoyment and it can also boost your home’s value over time. Renovations are always taken into account when a property appraiser assesses your home’s current market value and it’s also important when pricing your home to sell. If you have any questions about preparing your home to sell and whether or not a certain project will increase the value of your home, please contact us. We would be happy to offer a free home evaluation as well as guidance and suggestions that will set you up for success when you are ready to sell. 

Making the decision to sell your home can be difficult to make, and it can be extremely emotional. Selling a home is also a process, there are steps to be followed and things that need to be done to ensure that your property is in the best condition possible for a sale and so you can get the highest price possible. That being said, pricing your home is a science, but many homeowners will set the price with their heart rather than following trends and market information. Before we jump into the proper way to find the perfect price for your home, let’s take a look at some of the biggest myths around home pricing, and how you can avoid them. 

• If you price your home higher you will make more money:

While it is true that a higher price will make you more money, this isn’t always the case when it comes to pricing a home for sale. Listing your home for a price that is above market value could mean that it ends up siting on the market for a long period of time and make potential buyers wonder why it hasn’t sold, or if something is wrong with the property. 

• Ignore the comps, if you think your home is worth more, then it is:

Homes carry sentimental value, and everyone believes that their house is worth more than their neighbors’. What it ultimately comes down to is comparing your property to other properties that are similar – do they have the same number of bathrooms and bedrooms, are they similar in size and age, etc. If a home on your street is absolutely identical to your own and has sold within the last three to six months, stay close to their sale price when pricing your home to sell. 

• Follow the wise words of the internet, if Zillow says your price is worth X, then so it shall be:

There are so many home value estimators available online claiming to make it quick and easy to show you how much your home is worth at the click of a button. While this can be a fun activity to do, it’s best to get a professional home evaluation from an experienced real estate agent. Online estimators use automated valuation models to guess the value of your home based on location and other measurable factors, worst case scenario the estimate can set your expectations too high, which can make it difficult to accept a lower, more realistic listing price when you are ready to sell. 

• Make sure to include the cost of any renovations and upgrades in the list price, dollar for dollar:

Surprising as it may seem, not every home renovation project carries a positive return on investment. There is also such a thing as over-remodeling – you don’t want to have the best house in the worst neighborhood, because you’ll never get that money back. Remodeling is tricky because the wrong project in the wrong market can cost you more time and money than it’s worst. Now, if you’re planning on living in your home forever then by all means the sky is the limit, make that house your dream home! But if you are considering possibly selling in the future it’s smart to meet with a real estate agent who can help you decide which projects will recoup the cost in the sale price. 

• Never, ever take a price reduction:

Contrary to popular belief a price reduction is not always bad – some agents will encourage a small reduction of $1,000-$2,000 just to get buyer attention. If a buyer has looked at your home once a notification of a price reduction can encourage them to take another look. 

• Be patient and wait as long as you need to for the right offer:

When your home is on the market, it’s easy to think that offers are too low, or the buyer isn’t the right one. However, if you keep waiting for the perfect buyer or offer then your house will never sell. And when a home sits on the market for too long it becomes stale and any activity will quickly come to a stop. As soon as you begin receiving offers sit down with your agent and discuss your next move. 

• If you accept the first offer you get, then you priced your home too low:

A quick offer isn’t a bad thing, especially if it comes at full asking price – this just means the buyer really loves the property is prepared to be competitive in order to stand out. Don’t hesitate to accept the first offer, it could be the best one you get. 

Now that we’ve gone over some of the most common myths around pricing your home, let’s take a look at our recommended 10 steps towards finding the perfect price for your home.

1. Avoid Overpricing

One of the biggest mistakes you can make is to overprice your home. Buyers these days are very smart and have access to the same information that you do, so if they notice that your property is priced significantly higher than other homes in the area, they know that you’re trying to make more money than the house is worth. Additionally, if you were to get an offer at the list price, you’ll end up running into issues when the home appraisal reveals the true value of the property. The best way to sell your home for as much money as possible is to price it right. If your home is in good condition, located in a desirable location and priced appropriately, depending on market conditions, chances are that you’ll receive an offer above asking anyway as you’ll probably attract a number of potential buyers who will work hard to outbid one another in order to get the home. 

2. Hire an Appraiser

If you’re looking for a precise appraisal of your property, beyond the market analysis and comps prepared by your agent, then you will want to work with a certified and qualified appraiser who has experience in your market and neighborhood. 

3. Don’t Expect an Equal Return on Investment

People who invest a lot of time and money into remodeling expect to recoup their investment, and this isn’t always the case. While upgrades and a remodeled home are a big bonus, they’re more likely to attract a big group of interested buyers who will still prefer to pay the appraised value of the home based on local comps. 

4. Adjust the Price When Necessary

Once your home is on the market, you’ll quickly get an idea of whether it was priced well based on buyer reactions. If there are no showings, it means the price is too high, if there are lots of showings but zero offers it means it’s been marketed well but still overpriced. If some time has passed and you’re still struggling with no offers speak with your agent about adjusting the price. 

5. Follow the Comps

Comps take a look at other properties in your neighborhood that are similar or identical to your home and have sold in the last three to six months. If the highest sales price in your neighborhood is $300,000, then chances are that you won’t be able to achieve a higher sales price, unless your home really stands out. Typically, you can price your home higher than the comps in your area if it has something additional to offer, like more bedrooms or bathrooms, additional square footage, added features such as an attached garage or a finished basement, etc. 

6. Tap into Your Network

Friends, family and neighbors are a wonderful resource to consult with when listing your home for sale. You can even host a little open house so you can get some feedback from the people in your life to help guide your decision and how much you should list your home for. 

7. Offer Incentives

To encourage activity in a buyer’s market, many sellers will offer incentives like paying for inspections, helping with closing costs, taking on all repairs or providing allowances and credits for home upgrades after closing. This isn’t necessary, but if you absolutely need to sell your home quick, incentives can really give you a big push. 

8. Look Through Market Data

There’s nothing better than information, and you can gain a lot of insight by sifting through recent market data when looking to price your home perfectly. Take a look at expired and withdrawn listings – what did they do wrong? Explore pending and previous sales – what did they do right? Discuss this information with your agent so you can make an informed and intelligent decision about how to price your property. 

9. Curb Your Emotions

It’s hard to make a business decision about something that is near and dear to you. Emotions can make it difficult to have a realistic view of how much your home is worth, so try to receive advice with an open mind and be as objective as possible. 

10. Hire an Experienced Agent

It’s important to work with an experienced real estate agent who is local to your area and is strongly familiar with the market. If you are considering selling your Bryan-College Station home, please contact us so we can help you prepare your home for sale, price it well and assist through every step of the process. We look forward to working with you!

Central Texas is on pace for continuing to exceed record-setting home sales in 2020, and Austin, TX ended 2019 at an all-time high. There are many reasons why the Austin area is booming and why real estate is in high demand, but all of these trends may point to a reason for local homeowners to consider selling their Austin property. Within Austin’s city limits the number of home sales and the median price were the highest on record in October 2019. Sales climbed 14.5% with 835 home sales, and the median price was $405,000, a whole 8.9% higher than it was in October 2018. The only constant in the real estate market is change, and trends are constantly evolving as new data and statistic become available. Let’s take a look at the top 10 reasons to sell your Austin house now, based on local market trends and advice from our team of real estate professionals. 

1. You’ll Turn a Profit

If you have lived in your home for more than a couple of years, then chances are that you’ve built up some great equity as the value of your property has increased over the years. The more equity you have in your home, the more profit you will see when you sell your home. This means that you can take that money and use it for a larger down payment on your next home, invest a portion of the profit in something else, save money for retirement or travel and take care of any additional expenses that may have added up over the years. If you purchased your home post-recession at a historically low price, then you are in an even better position to sell. Whether you’re dreaming of buying a bigger home in a more desirable neighborhood or downsizing and holding on to your money, having significant equity in your current property can only benefit you. 

2. Demand Is High

It’s no secret that the Austin area has seen incredible growth and change in the last couple of years. The city has always been known for great food, wonderful live music and a welcoming ambiance. The Austin you see today is very different from the Austin from ten years ago – now you’ll encounter endless construction projects and high-rises, new developments promising prominent destinations for dining, entertainment, retail and more. Not to mention that innovative tech companies are constantly announcing a relocation to Austin or opening up secondary offices in the booming city. Big companies like Apple, Amazon and Google have announced major expansions to the city of Austin, which translates to job opportunities, which ultimately attracts new residents in need of housing. Newcomers will create demand for all kinds of housing, whether that be apartments, new homes, resale homes, condos, townhomes and more. The influx of new residents and strong demand for housing combined with low inventory will cause prices to continue to rise, which means home values will also increase and owners who are interested in selling are sure to get a great price for their property. 

3. Spring is Coming

In many cities, the spring and summer seasons are the busiest for the real estate market, which means that if you’re thinking about listing your home for sale you have some time to get it ready just in time. Experts show that listing your home some time between May 16^th and May 31^st seems to be ideal and can bring you a little bit of extra cash, and statistics show that your property could also sell about a week faster than at any other time of the year. Additionally, data shows that in every Texas market, the best day to debut a new listing and receive the most amount of attention is Saturday. Before you list your property for sale you should take the time to ensure that it is in great condition to be photographed and to be shown. On average, many sellers will complete at least one home improvement project before listing – this could be touching up the paint, replacing outdated hardware, deep cleaning any carpets, investing in landscaping and curb appeal, professional staging, etc. If you are looking to get the highest sale price possible, now is the time to start thinking about listing your home, preparing your property for sale and listing it just in time for the busy spring and summer seasons. 

4. Great Opportunity to Buy

If you sell your home for an outstanding price, chances are that you’ll turn a great profit and you’ll have some extra cash to play with as you look to buy your next home. A hot market also means that other owners will feel encouraged to sell their properties and you may quickly come across your dream home! 

5. Interest Rates are Low

The Federal Reserve cut interest rates three times in 2019 and left them unchanged at the end of December. Rates are expected to remain low throughout 2020, which will be a big help for new buyers who are looking to get financing for a first-time home purchase. Although rates will always fluctuate, almost on a day-to-day basis, prominent economists predict that rates will stabilize around 3.8% for this year, which is low enough to encourage buyers to bravely enter the market. Low interest rates also aren’t just a helpful nudge for would-be buyers to consider buying your home, but as you look forward to your next home purchase then you will likely secure a low interest rate as well, which will help keep your monthly mortgage payments low. 

6. Austin Prices Expected to Continue to Rise

Numerous news outlets and leading real estate resources have named the Texas capital as the hottest housing market of the year. The vast majority of economists and professionals expect home values in Austin to continue to grow and at a faster pace than the expected national rate. While this may seem worrisome to locals who have yet to enter the real estate market, it is extremely attractive to out-of-towners who are considering making the move to Austin. The city also remains relatively affordable in terms of the cost of living and is an extremely popular area for businesses looking to set roots. There are many tech companies who are also moving their business to Austin in an effort to grow and expand, which is directly tied to attracting young people looking for lucrative careers. As the Austin area continues to grow, thrive and expand we are sure to see a continuous influx of newcomers who undoubtedly will be looking to purchase real estate at prices that are extremely competitive in comparison to other popular cities like San Francisco and Los Angeles. 

7. New Buyers are Entering the Market

The biggest wave of new homebuyers continues to be millennials, and most of them are all first-time homebuyers. In some parts, you may even see members of the youngest generation, Generation Z, starting to enter the market – these are individuals born between 1996 and 2010. While many of them are still very young to make up a significant portion of the homebuyer market it is not entirely impossible to come across them as potential homebuyers. 

8. You’ll Close Quick

One of the biggest challenges in the housing market has been how long it takes from opening escrow to closing. As the market continues to heat up banks will be inundated with loan inquiries, which can cause these closing timelines to get even longer. If you sell your home now, before everyone else does, you will enjoy a quicker and more simple closing experience. 

9. You Don’t Know What 2021 Will Bring 

As we mentioned earlier, the only constant in the real estate industry is that it is always changing and evolving. You may have heard stories about a potential recession that is being predicted this year, and the truth is that for the rest of the country many markets are seeing a slow-down in real estate sales. There’s no need to worry about a massive housing crisis like the one that took place in 2008-2009, but home values do and will take a dip during economic uncertainty. In Austin, TX it looks like the market will remain strong, and experts predict big gains for the next couple of months, however we don’t know what 2021 will bring. If you’re playing around with the idea of selling your home now is the time to do it, while you are guaranteed to turn a profit. If you wait too long, you could miss out on getting the highest price for your home, as well as potentially finding your next dream home as other homeowners are also motivated to sell their properties. 

10. It’s a great time to buy in Bryan-College Station, TX

Did you know that the distance between Austin and College Station, TX is only a 2-hour drive (106 miles)? The Brazos County area has so much to offer, and home prices are lower than they are in the Austin area. If you sell your Austin home for top-dollar, you will be able to afford some incredible properties in the most desirable luxury neighborhoods in Bryan-College Station. To learn more about local real estate opportunities explore our current listings or contact us for more information!