Remember when selling your home was complicated enough? No one foresaw how the pandemic would make it that much more of a challenge.
The current housing market’s unpredictable yet sustained momentum continues to bubble up a conflicting range of advice on how to best capitalize on the present circumstances.
Sell now then rent? Sell first then buy? Buy first then sell, wait it out, or strike while it’s hot?
As with any market, it all depends on the circumstances specific to you and what makes the most sense to your phase of life.
At Schumacher Homes, we understand the difficulties of the times we’re experiencing and we believe no matter which phase of the home buying journey you’re in – just starting out, growing a family, or downsizing as empty nesters – a custom built home is within your reach.
We stand by the quality and craftsmanship of our award-winning selection of house plans and by our process which delivers an unmatched personalized experience to our customers in 30 markets and in 12 states across the country.
If you’re contemplating the benefits of selling your current home and building a custom one in today’s market, the good news is we’re here to help you ask the right questions to make the entire process rewarding and easy to understand.
Here are three key considerations to help get you started.
Taking the time to carefully research your own financial situation should be the first step for any home buyer or seller, regardless of market trends.
Depending on your financial situation, a bridge loan could be a smart option. Bridge loans are designed to help individuals who currently have homes to sell and are not paying cash for their new home. A bridge loan works by allowing buyers to purchase a new home and use their existing home as equity to “bridge the gap” if it hasn’t sold before closing. That way, you can move forward with the purchase of your custom home while your current house is on the market.
If a bridge loan sounds right for you, then consult with one of Schumacher’s preferred lenders or Schumacher Mortgage for an evaluation. A preferred lender will help you understand the details, as well as other options if a bridge loan isn’t the ideal fit.
Did you know as a custom home builder we’ve recently added new dedicated ways to offer certain types of financing for those who qualify? For more information, please visit the financing section of our website.
When is the right time to put your existing home on the market? Over the last several months, you’ve probably had many people tell you there’s no time like “right now.”
But even though it may seem like every region of the country is a red-hot, fast-moving seller’s market, you still should consider the following:
From there, you should also assess your unique timeline, starting with the biggest question: how long do you have to sell your home? Answering these questions will allow you to determine when it’s the right time to put your current house up for sale.
You may have heard that seasonal real estate patterns no longer apply. While it’s difficult to predict what will happen next as we stand in the middle of these shifts without fully understanding what’s affecting them, many experts agree, the housing market is slowing down as expected in certain parts of the country as the seasons change. However, in other regions, things are flat or continuing an upward trajectory. According to a recent article featured on Realtor.com, this winter should be anything but a hibernation for motivated sellers. Last year’s unusual seasonal real estate patterns had more to do with the pandemic upending everyone’s schedules (putting things on hold, sprinting to play catch up) then it had to do with predicting a new normal. This winter, the pent-up demand will have sellers across the country ignoring the temperatures outside and pushing through to schedule showings, because they know that’s what buyers are hoping for.
Pay attention to trends and events in the housing market. For instance, many assume that spring (April through June) is the best time to sell their home, but that also puts you up against more competition. Potential buyers have the upper hand in that scenario. According to Realtor.com, a recent study showed that sellers typically net more above asking price when they sold their home in the months of December through March.
That doesn’t mean you can’t be successful listing your home in the spring, of course. It just means you’ll need to stand out from all that competition. Paying more attention to how you market and present your home is key. And if you can, list your home early so you beat the boom of new homes hitting the market.
We close with one of the toughest considerations for most homeowners looking to sell their current home. After all, the opportunity to potentially save thousands of dollars in realtor fees is tempting. But if you have a new build already underway, or you need to use the equity from your current home for your new one, then you also have a delicate timeline to navigate. Hiring a realtor can help move the process along faster. Many homeowners learn this the hard way by first listing their home as FSBO (for sale by owner), then bringing in a realtor. It’s a risk-reward scenario: the longer your home sits on the market as FSBO, the more likely it’ll hurt your home’s market value.
If you feel confident to sell on your own, you’ll want to keep the following in mind. First, you will be responsible for staging, marketing, and scheduling all showings or open houses. Usually when you hire a realtor, they will tour your home and coach you on things that need to be changed or updated to best present your home to potential buyers. They also provide expertise on the listing price for your home based on current market trends, including what nearby homes are selling or have sold for. On top of that, a realtor takes responsibility for all marketing of your home (MLS and other online listings, social media, newspaper listings, and their own professional network).
On the other hand, sites such as Zillow allow you to list your home online for free, and with a bit of market research, you can likely figure out what a fair asking price is for your home. That may convince some homeowners to try FSBO. But that brings up another point to this consideration: a realtor helps you win buyers’ confidence faster. Having a realtor allows you to not be present during showings and open houses, and that’s a good thing. Potential buyers usually feel more at ease when speaking to the realtor than directly with the current homeowner.
The realtor will also make you feel more at ease. When you list as FSBO, you take on responsibility for presenting yourself and home professionally at each showing. You also become the main point of contact in all conversations throughout the buying and closing process (and the person responsible for keeping things out of emotional territory). That includes negotiating with the potential buyer or buyer’s agent.
One last note about listing your home as FSBO first: Some realtors do not like to show FSBO homes. But if you do end up needing a realtor’s help, you have options. If you are willing to offer a buyer’s realtor commission (usually 2-3%), or pay any part of the closing costs, share that information in your listing. This will provide an incentive for realtors to show your home to their client since they will profit from the sale.
If you’re ready to sell, we’re ready to build. Let Schumacher help you navigate the way to the next phase of your homeowner journey.
Schumacher Homes, based in Canton, Ohio, is America’s largest custom homebuilder, with operations in 30 markets in 12 states across the country. The National Housing Quality award winning company has built over 20,000 homes, customized to fit each family’s lifestyle, since its founding by Paul Schumacher in 1992. Schumacher Homes takes each customer’s inspiration and gives it a home. Each Schumacher Homes location includes a one-stop shopping design studio and model homes displaying the latest in architectural and product trends. Stop in today, be inspired and receive your no obligation price quote.