Housing economists are expecting a burst of interest among would-be home sellers this year. One factor is that mortgage rates are starting to slip from their peak, which means more owners are finally contemplating moves they’ve long delayed. Another factor is that homebuyer interest remains strong.
The 65-and-older population cohort is growing rapidly as the number of elderly baby boomer seniors -- born between 1946 and 1964 -- continues to swell. Meanwhile, numerous millennials are now angling to purchase the large family houses the boomers must eventually let go.
What’s at play right now are “demographic dynamics,” says Lawrence Yun, chief economist for the National Association of Realtors (nar.realtor).
To date, what’s held back many would-be sellers is their reluctance to let go of the extremely low mortgage rates they acquired through refinance during the pandemic years.
“People are loving their 3% or 4% mortgage,” says Yun, adding that he doesn’t anticipate the return of such low rates “in my lifetime.” But he believes many more owners have made peace with the notion that extremely low rates are unlikely to come back anytime soon.
Another factor that’s adding to owners’ motivation to sell is that prices remain strong in most communities, given the overall shortage of inventory.
“Homeowners are naturally more inclined to sell when property valuations are high and they’re still in the driver’s seat. No one wants to unload into a buyer’s market,” says Sid Davis, who heads a Utah real estate firm.
Still, Davis says many longtime owners in their 60s and 70s face daunting barriers to prepare their properties for market. To maximize their proceeds, they want some certainty that the upgrades they pay for will be worth the expenditure.
“Some presale improvements will pay you back mightily while others would be a near total waste of money or worse,” says Davis, the author of “Home Makeovers That Sell.”
Here are a few pointers for sellers:
-- Contain your enthusiasm for kitchen improvements.
For sellers, the road to overspending is paved with good intentions. Davis contends they’re especially likely to veer off course on kitchen improvements.
“The kitchen is a hugely important selling point. But you don’t have to spend a small fortune to make it look good -- unless it’s way below neighborhood standards,” Davis says.
For instance, he says, most sellers don’t need to tear out and replace their worn kitchen cabinets, only the cabinet doors. Or, if that’s not a feasible solution, they can freshen their kitchen’s look by sanding and repainting their cabinets in a high-gloss white.
-- Consider fresh paint a necessity.
Seasoned real estate agents are nearly universal in their appreciation of a newly repainted home. Painting is one of the most cost-effective improvements sellers can do, says Elisa Dewees, a longtime New Jersey agent.
But Dewees considers it a mistake to repaint in what she calls “custom colors.” For instance, she tells of an acquaintance who mistakenly repainted his dark gray walls in a bright peach tone.
“People don’t want to see your favorite colors, whether they’re pink, purple or blue. But a nice neutral tone will help them imagine living in your home,” she says.
Dewees has no financial interest in the Pottery Barn, a home furnishings retailer. But she suggests would-be sellers examine the color palette shown in the company’s latest catalog -- tones she believes reflect current homebuyer tastes. For the catalog, go to the chain’s website: potterybarn.com.
-- Consider revamping your bathroom lighting.
Many people who’ve lived in their home for a decade or longer still have the original light fixtures in their bathrooms -- even if they’ve updated their tile, cabinets and faucets.
But the multiple-bulb Hollywood-style lighting many people still use in their bathrooms doesn’t appeal to most contemporary buyers, who want a fresher, less retro look.
-- Replace worn carpeting.
Many sellers would rather offer buyers a “carpeting allowance” than to replace worn, stained or outdated-looking carpet.
But many real estate agents reject the idea of using a carpeting allowance, which they say undermines a seller’s prospects for a successful sale. That’s because few buyers can envision how much better a home will look when its old carpeting is replaced.
“If you have an average house, replacing your carpet will cost you a couple of thousand dollars at most. But if you opt instead for a carpet allowance, buyers will assume it will cost them multiple times that,” Dewees says, noting that a growing number of buyers will refuse any property that’s not in move-in condition.
Can’t afford new carpeting for the whole house? Then focus on the areas most visible to visitors.
-- Make sure your trees don’t hide your house.
Many longtime owners are extremely attached to the trees in their front lawn. Even if their trees have grown perilously close to the house, they’ll resist cutting them down.
“Lots of people are emotionally attached to their trees. There are many reasons for this. A tree may have been planted on a wedding anniversary, at the birth of a child or in memory of someone who died,” Davis says.
But given that curb appeal is paramount, Davis urges sellers to spend as much as necessary to trim or remove any tree that hide their property. Otherwise, he says, many buyers will summarily reject their property based solely on how it looks on the internet or from the street.
“If the buyers can’t clearly see your place, they’ll likely never seriously consider buying it,” Davis says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)