Planning to sell your house in 2016? If so, you might encounter a “cooler” real estate market with fewer buyers. But you can still get it done. This article offers time-tested advice for selling a home in 2016.
The U.S. housing market is recovering nicely. Demand for homes has risen in recent years, and house values continue to climb in most cities.
With that being said, the general consensus among housing analysts and economists is that the housing market will cool a bit in 2016. While home prices are expected to continue rising next year, they will probably do so at a more modest pace than the last couple of years. Sales volume is expected to decline as well.
“This year [2015] home sales have increased 13 percent” in dollar volume nationally, said Lawrence Yun, chief economist for the National Association of Realtors. “Next year [in 2016] it will not grow that strongly. Home sales will only rise about 3 percent.”
The message to sellers is clear: 2016 could still be a good time to sell, but you might have to work a little harder to find a buyer. We recommend using the PSP strategy outlined below.
The ‘PSP’ Strategy for Selling a Home in 2016
If you want to sell your house quickly in 2016, and for the highest possible price, you should focus on the PSP strategy for home selling. This proven strategy involves effective pricing, staging and promoting. PSP.
1. Pricing your home effectively
Pricing your home realistically is one of the most important steps in the selling process. If you want to attract buyers and elicit offers, you have to set a reasonable asking price based on current market conditions.
A real estate listing agent can help you determine a good list price, but you can also do some of the homework on your own. For starters, take a look at similar homes that have sold in your area recently. This is what agents refer to as comparable sales, or “comps.” This will give you a pretty good idea what people are willing to pay for a house like yours.
This kind of market research is the basis for setting your asking price. If real estate activity is slowing down in your area, you need to be sure you set a realistic asking price. That means you should set your initial price in the same range as similar homes that have sold recently.
Before you attempt to sell your home in 2016, spend some time studying your local real estate market. Examine the selling prices for similar properties. Determine your asking price based on what people are willing to pay for similar homes in your area.
2. Staging your home for buyers
Home staging is when you make adjustments or enhancements to your house so that it appeals to the majority of buyers. Home staging includes such things as painting, landscaping, de-cluttering, rearranging furniture, adding or removing furniture, upgrading fixtures, etc.
Check out: 14 reasons to stage your house
The goal here is to spend a little bit of time and money to make your home outshine the competition. Staging is important in any kind of real estate market, but it’s especially important in markets where home-buying activity is slowing down (as expected in 2016). With all other things being equal, a well-staged home will sell faster and for more money than a house that hasn’t been staged.
3. Promoting your home to attract buyers
The second ‘P’ in the PSP home selling strategy for 2016 stands for promotion. In order to attract buyers, you must promote your house effectively. There are several ways to market a home for sale. One of the most effective strategies is to put it on major listing websites, such as Realtor.com, Zillow and Trulia.
Word-of-mouth marketing can also be very effective, so be sure to let all of your friends and coworkers know you are listing your home. Put it out through social media and other channels as well.
Lastly, consider hiring a real estate agent who is experienced with home sales. A listing agent can help you promote the property through the websites mentioned above. And he or she might have other marketing channels as well, such as professional networks.
In a cooling real estate market, you’ll have to work extra hard to sell your house. You can do this by (1) pricing it effectively, (2) staging it for buyers, and (3) promoting it far and wide. If you check all three of the PSP boxes, you’ll have an easier time selling your home in 2016.
Brandon Cornett
Brandon Cornett is a veteran real estate market analyst, reporter, and creator of the Home Buying Institute. He has been covering the U.S. real estate market for more than 15 years. About the author