2024 Home Seller Resolutions

Every year, Ilyce and Sam offer their list of New Year’s Resolutions for home buyers, home sellers and financial resolutions for everyone.

Have you made your 2024 home seller resolutions yet? The last few years have been an unprecedented gift for home sellers. With few homes listed for sale, home prices have risen dramatically post-pandemic. Buyers have been lining up around the block, even as interest rates soared to over 8 percent.

Now that interest rates are declining (they dipped below 7 percent in mid-December), it looks as though 2024 will be another banner year – for sellers, even as buyers begin to have a little more purchasing power.

But it isn’t all wine and roses for home sellers. There are two problems facing homeowners thinking of selling in 2024. First, they have to move somewhere. Typically, sellers will buy another home, which will be more expensive. If they need a mortgage, that new loan will likely be far most costly than their current or former loan. Second, timing. They only have one home to sell. So, when should they pull the trigger?

If you’re going to sell your home in 2024, here are some resolutions you might want to make before sticking a sign in your front yard:

Home Seller Resolution #1: Decide whether you need an agent

We’ve long felt that real estate agents are helpful, especially when the overall housing market favors buyers. In a slow market, where there are plenty of homes for sale relative to the number of buyers, agents can help with staging your home for sale and marketing it in ways you might not have imagined. And for that assistance, you’ll pay a commission that ranges from around 4 to more than 6 percent of the sales price.

But when you’re in a hot market, where buyers are trolling the streets and the internet to find a home – any home – to buy, you might want to try selling your home by owner and saving the commission. Or, you can offer to pay a half or smaller commission to the buyer’s agent. You can also negotiate the price of the property so the buyers can afford to pay their own commission.

It’s worth a try, especially if you’re selling a $500,000 property and may be able to put an additional $30,000 in your pocket. Just remember, you have to do all of the agent’s work, including staging the home for sale, pricing it correctly, getting the word out, and negotiating the deal.

Finally, there are many agents who are now doing “pocket” listings. They list your home and then try to sell it privately, either to their own buyers or a buyer who is working with an agent in their firm. These agents will tell you they’re going to show the home privately and you’ll have a faster sale.

Maybe. But, unless your home is exposed to the broadest possible audience, we fail to understand how it could generate the best possible offer. We believe you should reject the agent’s offer of a pocket listing.

Home Seller Resolution #2: Figure out where you’re going and how much you can spend ahead of time

In some ways, this should be the first thing you decide before you list your home. In a hot market, your home could sell in hours, with the buyer looking to close in a few short weeks. If you have no idea where you’ll go or what kind of home you want to live in, you might wind up storing your furnishings and renting for a while.

Nothing wrong with that, except you’ll pay twice to move – which admittedly could be cheaper than making the wrong move first.

How about this: Take some time to think through your options ahead of time. Make sure you understand why you’re moving. Is it for a new job? Grandchildren? Climate? Intellectual or cultural enrichment? Or, do you just need a change?

Look at a few different neighborhoods or locations. Walk through those neighborhoods and book a weekend trip to experience life in other places. Look online at home valuations and try to estimate how much your home is worth. Back out expenses and calculate how much you’ll net from the sale. What will that amount of money buy in your new location or neighborhood? Is there a good enough supply of inventory? Do you need to buy first and sell after your offer to purchase is accepted?

Finally, think about how long you plan to stay in this new home. Is this your “final” home? Is this a 3- to 5-year home until you figure out where your kids will land? Do you have, or will you have, medical issues that could drive what type of home you buy or where it’s located? Again, it’s best to think through the answers to these questions before you sign a listing agreement.

Home Seller Resolution #3: Take care of the small stuff before you list

Every home needs work. And, your buyer will almost certainly hire an inspector to give your home the once-over. The inspector is bound to find a few things and then you’ll need to decide whether to fix the items or give the buyers a credit.

The easiest thing to do is fix the small stuff before listing your home. Make sure you give your home a thorough cleaning. If you know your home has bigger issues, decide in advance whether you’re going to fix those, too, give the buyer a credit or just offer the home in “as is” condition.

Putting your home in the best shape possible provides the opportunity to generate the maximum amount of interest. And, that should help deliver the best possible offer.

2024 Home Seller Resolutions