Six things to know if you are thinking of selling your home in early 2024

As we close the books on 2023, it's clear that this was not a great year for Austin home sellers:

• Interest rates kept many buyers on the sidelines, 
• Home inventory rose, and buyers had more choices,
• Buyers were able to negotiate prices downward around 6 - 8%,
• Homes took longer to sell, and
• Not all homes sold.  

Not the rosiest picture if you are thinking about selling your home in Austin in early 2024...

Of course, that doesn't mean homes aren't selling.  People are putting their homes on the market every day. They want to downsize. They want to upgrade. They want new neighbors. They want no neighbors. They want to move closer to (or farther away from) family.  

If you are considering selling your home in early 2024, you will want to position yourself for success and have a realistic understanding of the current Austin market conditions.  Let's walk through it.  

IS THIS A GOOD TIME TO SELL MY AUSTIN HOUSE?  

Frankly, the next few months are not the best time to sell.  Of course, selling is a deeply personal decision that depends on your personal finances, what's driving your decision to sell, how long you've owned your home, and your risk tolerance. Let's look at it from all perspectives.

 IF YOU DON'T HAVE TO SELL:   If you don't have to sell, the best advice is to hold on to your property until the market stabilizes, interest rates come down, and buyers are active again.  Unfortunately, we don't have a guarantee when the market will improve, but historically we see a seasonal shift each Spring where Austin prices tend to increase 6 - 8%.  We suggest waiting until February and re-assessing the market conditions then.   

 IF YOU HAVE TO SELL:   If you find yourself in a situation where you have to sell, try to hold off until late February so that you can get the price lift that usually accompanies the natural seasonality of the Austin real estate market.   If you can't wait until late February, consider leasing or follow the tips we outlined below to increase your odds of selling.

 IF YOU PURCHASED YOUR HOME IN 2020 OR 2021:    If you bought your home during the pandemic peak, you may find yourself "upside down" and facing a loss.  Time will fix this.  Hold onto your property and let appreciation over time work its magic so that you come out ahead.  If you've got to make a move, then we suggest leasing.  More on that below.

 IF YOU'VE OWNED YOUR AUSTIN HOME FOR AWHILE:    Austin home prices have appreciated substantially in the last ten years, so if you've owned your home for awhile you are likely sitting on significant appreciation and a substantial amount of equity.  Our handy calculator can help you explore the possibility of cashing out.  Keep in mind, however, that if you sell now you are unlikely to replace that sweet sub-five percent interest rate you may be currently enjoying.  

WOULD I BE BETTER OFF LEASING MY HOUSE AND SELLING LATER?

If you would lose money if you sell your home now or if you want to capitalize on your potential profit, another option is to rent your home out until the market rebounds.  The rental income can cover or defray the cost of carrying the property.  If you aren't sure if leasing makes sense for your personal situation, we will gladly do some analysis for you.  We can also connect you with a property management company that can help you find tenants and address tenant needs during the course of the lease.

IS THERE ANYTHING I CAN DO NOW SO I'M READY TO SELL WHEN THE MARKET SHIFTS?  

Yes!  If selling is in your future, we highly recommend using this slower market to prepare your house for sale.  Gradual and steady improvements may be easier to absorb over time and put you in a position to be ready to go on the market quickly when things begin to pick back up.  Here are four things you can do now to get a jump on the market.

#1:  PURGE AND DE-CLUTTER.  Use this time to go through your belongings one area or room at a time.   As you do so, purge unwanted or unused items and pack up things you don't need.  Focus on neutralizing your space and reducing the amount of personal photos and mementos on display.  

#2:  DEEP CLEAN.   Clean the spaces that don’t get regular attention.  This is the time to wash the baseboards, remove the cobwebs from the ceiling, clean the light fixtures, replace burnt out bulbs, dust under the furniture, and have the carpets professionally cleaned.  Professional house cleaners are a huge help with this.

#3:  CONSULT WITH A PROFESSIONAL STAGER.  A professional stager can help you figure out how to optimize the use, look, and feel of every room in your home so that it is the most appealing to potential buyers.  People sometimes confuse decorating with staging, but the two are quite different.  As this interview explains, staging often helps home sell for more by showcasing your home in its best light.    

#4:  MAKE MINOR REPAIRS.  The days when buyers were looking for a fixer upper are gone.  The leaky faucet, the wobbly toilet, the peeling wallpaper, the smudge on the wall, the peeling exterior paint -- these are things you can address now so that you are prepared when the market heats back up.  

WHAT CAN I DO TO INCREASE MY ODDS OF SELLING NOW?  

Our sluggish 2023 market is full of lessons for potential home sellers.  If you need to sell now or in early 2024, here are six tips to increase the likelihood of your home selling in less time and for a higher price.

LET'S TALK THROUGH YOUR OPTIONS

If selling a home in Austin is on your to do list for 2024, we can help you sort it out and establish a strategic path forward. 

We will answer all of your questions and come up with a plan with actionable steps designed to get you where you want to be.  And then you decide what makes the most sense for you.  

Reach out when you're ready to talk through your options.