Higher prices and low inventory in LA tell a convincing story for why you should sell in 2017. Many agents are clearly pushing for this narrative. While I generally agree, I always tell folks it all depends on what your objectives are. So here's what you need to know.
1. Keep an eye out on mortgage rates (because your potential buyers are). The 30-year fixed rate in LA ticked down to 4.47%, but is still above the national average. Nevertheless opportunistic buyers (especially those with great credit) will be watching this closely looking to lock into a good rate early. If interest rate expectations hold, expect to see the bulk of loan applications crowd into Q1 and Q2 of this year because mortgage rates will likely go up by end of year.
What this means for you: Get to know the pool of buyers coming in now and what they're looking for in a home. This can give you the upper hand early in the game.
2. Know your competition (I can't stress this enough). A dose of reality early in the game is the best antidote for disappointment down the road. If you're looking to sell your home, you're essentially putting a product out in the market that is competing with others. Some will have different designs, some will have been recently renovated, the list goes on. Here's my point. Ideal buyers will value your home relative to what else is out there.
What this means for you: View the market from multiple angles beyond just price and CMAs. Know how many homes you'll be up against, how they break down by distinct features and designs and who the ideal buyers are in your area. Knowing the demographic shifts are also key in understanding who are the most likely buyers of your home--most CMAs miss this entirely.
3. Higher prices and low inventory can also work against you. Selling your home also means you'll be thrown into a market with higher prices and low inventory assuming you're looking to continue to own.
What this means for you: Narrow down your ideal neighborhoods and understand current playing field of available inventory. The more data and knowledge you have, the less susceptible you'll be to the price advantage of sellers.
I encourage home owners to take advantage of market opportunities when they present themselves. But I also encourage them to be armed with the right data and knowledge so they can maximize ROI.
Try our free market analysis service and see what we can do for you.