Frequently Asked Questions

In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand:

• Economic factors – the local labor market heats up, bringing an inflow of new residents and pushing up home prices before more inventory can be built.
• Interest rates trending downward – improves home affordability, creating more buyer interest, particularly for first time home buyers who can afford bigger homes as the cost of money goes lower.
• A short-term spike in interest rates – may compel “on the fence” buyers to make a purchase if they believe the upward trend will continue. Buyers want to make a move before their purchasing power (the amount they can borrow) gets eroded.
• Low inventory – fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs.

Mop the floors, scrub the bathrooms, and get rid of all the grime in the kitchen.

Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.

And don’t forget about paint — returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.

If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter.

Put away your family photos, knick-knacks, and other personal items. You may need to rent a storage unit if you don’t have a place to put them all.

» READ: 18 Essential Tips Get Your House Ready to Sell in 2021

» LEARN: Best Paint Colors to Sell a House

On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing.

The exact time it takes to sell a home depends on a few things, including:

• The time of year you’re listing: Homes tend to sell faster in the spring and early fall.
• Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.
• The condition of your home: Homes in great condition may sell faster than homes that need more work.
• How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process. Financing deals usually take an average of 42 days to close, whereas cash deals take only one to two weeks.

The longer your home is on the market, the more money you lose. You’ll still have to pay your mortgage, taxes, and utilities until the buyer officially closes.

To avoid this, there are some things you can do to help your home sell faster.

You can make impactful repairs, like adding new carpet or painting the interior. However, if it’s a seller’s market and homes are selling quickly, you might not need to make these repairs.

You can also set a competitive price with the help of a top real estate agent.

Clever Real Estate’s partner agents sell homes faster than the national average with lower commission fees.

» READ: How Long Does it Take to Sell a House? (An In-Depth Guide)

» LEARN: How to Sell Your House Fast (A Comprehensive Guide)

The first step in deciding your home’s list price is to get a comparative market analysis (CMA).

You can do this yourself, but most people get their real estate agent to do it.

Here’s how a CMA works. Your agent will find similar homes in your neighborhood that have the same square footage, a number of bedrooms, and a number of bathrooms.

They’ll see what these homes recently sold for or are listed for, and use this as a starting point for your own list price.

Some agents are willing to perform a CMA without you committing to selling your house through them. However, be prepared for a hard sell.

A great agent will be an expert in their local neighborhoods, so they’ll be able to price your home in the sweet spot.

If you’re just curious and don’t want to spark up a conversation with an agent, you can also use an online valuation calculator.

This might give you a ballpark figure based on cumulative data. Keep in mind, these aren’t always 100% accurate.

An appraiser is an expert at pricing homes and can use their extensive knowledge to pinpoint an accurate list price.

On average, you’ll pay between $200 and $500 for this service.

Whether or not you should buy a new home before selling your existing home is a personal choice.

Having a new home lined up gives you peace of mind when selling, and you can move out on your own time.

It also prevents you from lining up temporary housing (and having to move twice), which can be a pain.

That said, you may get stuck paying two mortgages at once. This can be a problem if your sale takes longer than expected.

You can also feel rushed into quickly finding a house instead of waiting for a better deal.

» LEARN: How to Buy a New House Contingent on Selling Your Current One

» CONSIDER: How to Build a House While Selling Yours: 5 Things to Know

A real estate agent has an in-depth knowledge of the area and how your home compares to others on the market.

They’ll have a good idea of how much you can get for your home and ways you can improve its value.

When it’s time to list, they’ll make sure your home’s priced just right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and coordinate open houses.

Real estate agents aren’t just helpful during the listing process, though. They offer a network of professionals throughout the entire selling journey.

You’ll have connections for everyone you need, whether that’s a closing agent or quality listing photographer.

» LEARN: Top 3 Reasons You Need a Real Estate Agent

» READ: What Is a Listing Agent?

Your home’s assessed value and market value are each determined by different factors.

Buyers and sellers affect the market value of a home, while professional appraisers calculate the assessed value.

In a seller’s market, your home’s market value may be higher than its assessed value.

That’s because buyers are willing to pay more than the home is technically worth because of low inventory.

In a buyer’s market, you’ll be facing a lot of competition from other sellers, so buyers may put in an offer lower than the home’s assessed value.

» LEARN: Appraisal Value vs Market Value: What’s the Difference?