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Should you sell your property now, or wait until 2017?

Property market indicators point towards a period of slowdown in 2017 and eventual sharp decline in 2018. This leaves property sellers with one option to get the highest bid; selling their property in now. Since 2011 when prices of property hit the trough, there has been a 25% jump. Today, S&P/case-Shiller Index Data indicates that the prices sit only 7.6% below the peak that was hit in 2007. Here are the key reasons why you will get more by selling that property now as opposed to 2017.

Housing prices are higher in 2016 and will drop in 2017

Since early 2012 the cost of property has continued to increase and can be equated to the high reported in 2007. Therefore, it is the highest that sellers should expect the rates to hit before slowing and taking a decline. A rise in price means two things; one, the seller can expect to get higher returns from sale of his/her property. Two, the buyer is pushed to limit in order to afford the high prices. Taking advantage of the current high prices is a good decision instead of risking lower rates expected in 2017.

While predictions for property prices growth in 2016 and 2017 differ slightly, one thing experts point at is that a slowdown is imminent. JPMorgan Chase & Co analysts indicated that 2016 would see an elevated growth, slow in 2017, and decline in 2018. On their focus, Realtors pointed at a 3.6% price increase in 2016 and a sharp dip in 2017. According to these statistics, this could be the best moment to get the top price for any property.

Increased supply of property

In 2015, many counties experienced a low supply of property to the market. This was attributed to the fact that prices were still recovering from the low of 2011. However, this is different in 2016. As prices continued to rise through 2015 and 2016, construction of new properties has risen steadily and is expected to continue later in 2016 and early in 2017. This will lead to a price slowdown that will see property sellers get less if they do not sell in 2016.

In property market, everything is about predicting trends and shaping the market views. However, these predictions have at times failed, came earlier or later. Even when predictions give a rosy picture, it is the external factors that come into play. For example, the current high prices has made real estate developers work extra hard to supply more property in order to enjoy better returns. This could, however, bring the prices down faster than anticipated. The surest way to get better returns is selling that condo, home or villa right away to enjoy the current high prices.

Dipping income rates

The price of property in the market is determined by a number of factors including supply, government policies and future expectations. Another crucial factor is the people’s income. Recently, the level of unemployment has taken a downward trend. This spells doom to property sellers because the demand may start to shrink immediately. With indicators of a slowing economy being evident and levels of employment expected to rise, the immediate impact on property market will be slowing demand and price falls. In addition, the recent new cycle introduced by the Federal Reserve has also introduced rates elevation that will see mortgage prices going higher; a consideration that will make property less affordable. Real estate developers are very keen on these factors and will ensure they sell most of their properties now before more difficult moments come in 2017 and thereafter.

There is greater ease of selling property in 2016

One fact that property dealers underscore is that selling a property quickly is never easy. The process is even more difficult when the there is an economic slowdown. The expected slowing down of property prices in 2017 could have a ripple effect on other areas of the economy. With memories of the recent 2007-2008 economic slowdown still fresh to most people, it is expected that more people might prefer to cut down on spending. This may result to reduced demand and lower prices for property. Take advantage of the current market when buyers are available, prices are good and selling property is relatively easy.

“We are finding that our cash buyers are offering higher amounts and greater selling figures are being achieved in 2016 when compare to last year. The market in the south from our studies is still growing quickly and houses are selling much faster when compared to the north of the UK” says Susan Jones from UK property buyer website Ask Susan.

While the property market has experienced a relatively stable growth since 2011 and 2012, the future looks uncertain. Many predictions since 2015 have pointed at 2015-2016 as the peak before a slowdown. Though the last quarter of 2016 is predicted to experience a little rise in property demand, it is advisable to sell right away when the market is still bullish and chances of enjoying better rates is higher. Take advantage of the current high prices because of the large market and ease of selling property.

HZ

Should you employ an estate agent to sell your house?

Today, approximately 90% of property owners use agents to sell them. The process of selling a house is lengthy and requires background experience and understanding of the market which real estate agents have mastered for many years. For people who view the 6% paid to real estate agents being too much, it is still possible to sell on their own. However, they risk taking a lot of time and selling lower than the market rates. This article demystifies the reasons why you are better off selling a house using an agent as opposed to going it alone.

Real Estate agents are trained and experts in negotiations

The process of training of a real estate agent is extensive and aimed to make them understand the process and become good negotiators. If you set out selling a house on your own, buyers are always skeptical and think that you might be having something to hide. By contracting a real estate agent, there is a great deal of credibility and professionalism.
Real estate agents are perfect negotiators. Negotiating price with buyers is never easy because it demands training and some level of emotional attachment. Agents provide an impartial focus so that the house owner is able to enjoy the best deal. Since they have been involved in the same process, they know the limits and will not give up easily because a client is walking away. They will push the deal to ensure that you get the best.

Agents assist with legal procedures and paperwork

Transactions involving transfer of property from one person to another involves a lot of regulation, bureaucratic procedures and paper work. If you opt to sell the house on your own, it is important to be prepared to handle all of these procedures. The truth is that most people who try selling property on their own end up getting exhausted midway.

-Good real estate agents apply their knowledge to navigate the process with ease: They use their experience to ensure paperwork is completed correctly and on time. Because agents do this daily, they have all paperwork requirements, agreements and other documents so that you do not have to start from scratch.
-Most real estate agents have attorneys: To complete the sale process in a manner that the deal is legally binding, legal input is very critical. By using an agent, you will be able to get all the legal services involving the transaction at the same 6% that will be paid after sale. You do not have to hire an extra attorney who might charge you more to prepare the sale documentation.

Should you sell your property now or wait until 2017

Agents help sellers to get the right property prices

One mistake that house owners who prefer to sell on their own do is setting exorbitant prices. The property ends up taking a lot of time in the market. Real estate agents work with a wide network of experts in the property market that make them cognizant of the latest trends. Besides, they have access to different databases that helps them get clear evaluation so that they can fix the right price for your house. Even if the house has been designed and completed very well, the actual price will be determined by the market trend.

Before a real estate agent can sell your house, a valuation expert is sent so that estimates are done with greater precision. More importantly, if the house is old, the valuation experts and the agent are able to help you make some improvement to raise the price. These improvements include the following.

-Improving roofing and gutters
-Applying a new coat of color
-Working on the landscape

Agents will aggressively market your house

One of the main reasons for seeking assistance of a real estate agent when selling a house is because of the intensity of marketing required. Today, the market is shifting and buyers follow various platforms to know the available houses and other properties on sale. Some good agents will employ diverse marketing techniques to ensure that your house is bought as soon as possible.

-a)The agent will list your house in its website and those of partner property firms
-b)Your house will be added to property magazines, websites and showcased in property forums
-c)They capture the house using quality photographs and details that catch the eye of buyers to drive interest.

The high level of marketing skills makes it easy to draw more potential buyers so that the property is sold faster. Notably, even after the buyers come asking about the house, the agent will also apply his/her experience to vet them so that only the serious ones are considered.

Bottom line

While selling a house on your own is still possible, the handles involves in preparing the paperwork, marketing and even vetting clients can be too much. The best way is to get a real estate agent with wide experience on similar processes in the past. This will make the process of preparing paperwork, navigating through the bureaucratic system and marketing easy. Within a very short time, you can be sure of selling the house at the highest possible price.