American real estate website realtor.com has published its Top Tips for Home Buyers and Sellers for this year. These tips will guide everyone from house-hunting virgins to flipping fanatics through the market specifics for the next year, cutting through the clutter of real estate advice to highlight what is most important for buying or selling a home in 2016.
Jonathan Smoke, Chief Economist for realtor.com, said: “The 2016 housing market is forecast to be mainly a seller’s market, filled with increasing home prices, relatively low inventory and fierce competition between buyers.
“Buyers looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs. For sellers, it’s about understanding the ins and outs of their local market so they can optimise the price of their home and close quickly.”
The top tips for 2016 home buyers include:
Be the early bird. More than 85 percent of buyers who plan to purchase in the next year intend to buy in the first six months of 2016 according to the most recent realtor.com survey. It is likely to be a similar proportion in most parts of the world, as the intention to buy remains high. With roughly 50 percent more listings inventory relative to the number of potential home sales expected in January and February, buyers who start their search early face less competition with nearly the same number of homes.
Comparison shop for mortgages. Mortgage rates are expected to rise this year. Buyers planning to finance their purchase should put as much effort into getting the right mortgage as they do finding the right home. A lower interest rate can make the difference in qualifying for a home and save thousands over the life of the loan.
Consider a new home. In 2016 the number of new homes on the market is expected continue to grow in Southeast Asia. Buyers should consider the new home options in their market; they are likely to enjoy a broad selection of homes. While new homes are typically higher in price, they are usually smaller in size but offer performance advantages and warranties that could reduce operating and maintenance costs.
The top tips for 2016 home sellers include:
List during peak season. Unlike buyers, demand benefits sellers. Prime home buying season varies from country to country, and even from city to city, so get advice from a trusted and knowledgeable real estate agent. Sellers who list their home during the prime months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings.
Price a home to the market. In 2016 prices are expected to increase. Work with a real estate agent with knowledge of your market to optimise the price of your home based on its unique features and surrounding neighbourhood. These agents are often able to receive the highest price for their market and sell more quickly.
Offer incentives. Last year actually saw a significant number of all sellers offer incentives to attract buyers. Sellers who are open to negotiating beyond price are more likely to find scenarios that result in wins for both sides resulting in a potentially faster sale and more seller profit.
Realtor.com is the official website of the National Association of Realtors.