Looking to Sell a Home in 2022? You May Want to Get Moving Now
- The housing market continues to favor sellers.
- That situation could change as 2022 moves along, so you may want to get started with that listing.
There's a big reason you shouldn't sit tight for too long.
It's more than fair to say 2021 was a great year for home sellers. Limited inventory and high property values created a scenario where sellers had the clear upper hand in the residential real estate market. And many sellers have walked away with a nice profit over the past 12 months.
Right now, housing market conditions are still quite favorable to sellers. But if you're thinking of selling your home this year, you may want to get that process started sooner rather than later. Here's why.
Don't wait to sell to your home
Although we're starting off 2022 with mortgage rates sitting at fairly competitive levels, they're already notably higher than they were throughout 2021. And there's reason to believe rates could continue to rise as 2022 ticks along.
For one thing, the Federal Reserve has plans to increase its short-term borrowing rates. While those rates apply to banks, not consumers, they can influence the way mortgage rates trend.
If mortgage rates continue to climb, buyer demand could start to weaken. Once that happens, home prices could start to tumble. That's a good thing for buyers, but for sellers, not so much.
That's why if you're thinking of selling your home in 2022, you may want to do so within the next few months. If you do, you might manage to get your listing up at a time when mortgage rates are still competitive enough to entice buyers.
Another thing to consider is that housing inventory is still extremely limited, but that could change come spring. The spring season is generally the busiest time of year for property listings, so if you manage to get your home on the market before that boom, you might have less competition to attract buyers.
Should you sell your home solo?
Right now, buyer demand is still very strong, so you may be inclined to skip the real estate agent and tackle the process of selling your home by yourself. This isn't necessarily a bad choice, because real estate agent fees can be substantial. If you're selling a $500,000 property and most local agents where you live charge a 5% commission, selling your home on your own could save you $25,000.
At the same time, there are benefits to working with a real estate agent -- even at a time when sellers continue to have the upper hand. Not only can an agent help you market your home and price it strategically, but an agent can help negotiate with buyers and guide you through the selling process. Having that support could eliminate a world of stress.
Whether you decide to sell your home on your own or hire a professional, it pays to consider starting the process soon. We don't know what 2022 has in store for mortgage rates or when housing inventory will pick up. But there's a chance both could rise over the next few months, so listing your home before spring could be a smart bet.
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