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Things To Consider WhenSelling Your HouseWINTER 2025EDITIONSandy Erickson Real Estate TeamREALTOR / CRS / SRES / ABR / PSABrokered by Realty GroupLicensed in Minnesotaagents@sandyerickson.comwww.sandyericksonhomes.com(651) 998-4900

Table of Contents3 Questions You May Have About Selling Your House6 How Long Will It Take To Sell My House?8 What To Expect from Mortgage Rates and Home Prices in 202510 Homeowners Gained an Average of $28K in Equity over the Past Year13 The Biggest Mistakes Sellers Are Making Right Now15 A Checklist for Selling Your House16 Working with an Expert Beats Going Solo18 Key Reasons To Hire a Real Estate Agent When You Sell

3If you’re debating whether or not you want to sell right now, it might be because you’ve got some unanswered questions. Here’s some information that can help.Questions You May Have About Selling Your House1. Is It Even a Good Idea To Move Right Now?If you own a home already, you may be tempted to wait because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of your equity.Equity is the current market value of your home minus what you still owe on your loan. And thanks to the rapid appreciation we saw over the past few years, your equity has probably gotten a big boost. A report from CoreLogic says the average homeowner has over $315,000 in equity.You can use your equity to put down a larger amount on your next home, which means financing less at today’s mortgage rate. And in some cases, you may even be able to buy your next home in cash, avoiding mortgage rates altogether.

4Bottom LineIf you want to talk more about either of these questions or need more information about what’s happening in our area, let’s connect.2. Will I Be Able To Find a Home I Like?If this is on your mind, it’s probably because you remember just how low the supply of homes for sale got over the past few years. It felt nearly impossible to find a home to buy because there were so few available. But finding a home in today’s market isn’t as challenging. Data from Realtor.com shows how much inventory has increased – it's up almost 30% year-over-year (see graph below):Even though inventory is still below more normal pre-pandemic levels, this is the highest it’s been in quite a while. That means you have more options for your move, but your house should still stand out to buyers at the same time. That’s a sweet spot for you. It’s important to note, though, that this balance varies by local market. Percent Change In Inventory Year-Over-Year vs. Pre-Pandemic (2017–2019) The Supply of Homes for Sale Is Growing, But Still Below the Numbers Seen in More Normal Years29.2%-21.1%Y-O-Y Pre-PandemicSource: Realtor.com

Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market . . . Your future plans and goals should be a significant part of the equation . . .- Bankrate5

6The Growing Supply of Homes for SaleAs mentioned, the number of homes for sale has increased over the past year. But not all of that growth is from fresh listings coming onto the market – some of it is from homes that are taking a bit longer to sell because they’re not showing well or aren’t price appropriately for today’s market.Available inventory is made up of new listings (homes that were just put up for sale) and active listings (homes that were already on the market but haven’t sold yet). And if you look at data from Realtor.com, you can see a good portion of the recent growth is from active listings that are sticking around (see the blue bars in the graph below):One other question you may have is: how long will the process take? Here’s some information to help you find the answer.Active Listing Greater Than New ListingsIn ThousandsSource: Realtor.com010020030040050060070080090010001100Active Listings New ListingsHow Long Will It TakeTo Sell My House?

7Bottom LineIf you want your house to sell fast, you need to work with a pro. Let’s connect so you’ve got someone who understands the current market trends, how to build a strategy around those factors, how to set your house up to sell quickly.How That Growth Is Impacting Listings TodayThink of the homes on the market like loaves of bread for sale in a bakery. When a fresh batch of bread is put out, everyone wants the newest and hottest one – in the housing market, those are the new listings. But if a loaf sits there too long, it starts to get stale, and fewer people want to buy it – in the housing market, those are the active listings.An Agent Will Help Your House Stand Out and Sell QuicklyA pro will help make sure your listing is scooped up when it’s fresh and doesn’t stick around long enough to go stale. A great agent will walk you through how to:• Price your house to sell: A local real estate agent will do a competitive market analysis by reviewing recent sales and current listings for your area. Then, your agent will use that data to make sure your home is priced accurately for today’s market.• Update or repair your house so it shows well: Homes that are well maintained, have great curb appeal, and are updated with modern finishes tend to sell faster. An agent is a key resource for what buyers will be looking for, if staging is worthwhile, and what repairs you need to tackle before you list.• Offer incentives and extras: Offering things like help with closing costs, a home warranty, or including additional items (like appliances or furniture) with the sale can sweeten the deal for buyers. A real estate agent can suggest the right incentives to offer based on current market conditions and buyer expectations.The National Association of Realtors (NAR) explains the impact the right partner can have:“Home sellers without an agent are nearly twice as likely to say they didn’t accept an offer for at least three months; 53% of sellers who used an agent say they accepted an offer within a month of listing their home.”

Mortgage Rates Are Expected To Ease and Stabilize in 2025After a lot of volatility and uncertainty throughout 2024, expert forecasts suggest rates will start to stabilize over the next year, and should ease a bit compared to where they are right now (see graph below):It’s important to note this is one of the most challenging forecasts to make in the housing market. That’s because these forecasts hinge on a few key factors all lining up, including inflation, the economy, government policies, and more. While rates are expected to come down slightly, they’re going to be a moving target. Be sure to connect with a trusted agent and a lender, so you always have the latest updates – and an expert opinion on what that means for your move.Curious about where the housing market is headed in 2025? Here's what the expert forecasts have to say about two key factors that impact your decision: mortgage rates and home prices.8What To Expect from Mortgage Rates and Home Prices in 2025Sources: Fannie Mae, MBA, Wells FargoMortgage Rates Projections30-Year Fixed Rate, as of November 2024What To Expect from Mortgage Rates and Home Prices in 2025Quarter Fannie Mae MBA Wells FargoAverage of All Three2024 Q4 6.60% 6.60% 6.80% 6.67%2025 Q1 6.50% 6.60% 6.65% 6.58%2025 Q2 6.40% 6.50% 6.45% 6.45%2025 Q3 6.30% 6.40% 6.25% 6.32%2025 Q4 6.30% 6.40% 6.30% 6.33%

3.05.54.94.74.44.03.73.63.53.02.92.3 2.32.01.50.6-0.4Average of All 16AEI Housing CenterWells FargoBank of AmericaGoldman SachsCapital EconomicsRealtor.comFannie MaeHousingWireMorgan StanleyZillowCoreLogicZelman & AssociatesNARMBAFreddie MacMoody's Analytics9Bottom LineIf you have any questions about how these trends might impact your plans, let’s connect. That way you’ve got someone to help you navigate the market and make the most of the opportunities ahead.Home Price Projections Show Modest GrowthWhile mortgage rates are expected to come down slightly, home prices are forecast to rise – but at a much more moderate pace than the market has seen in recent years. Experts are saying home prices will grow by an average of about 3.0% nationally in 2025 (see graph below):This is far more manageable than the rapid price increases of previous years, which saw double-digit percentage growth in some markets.What’s behind this ongoing increase in prices? It has to do with demand. Even though the supply of homes for sale has grown, there still isn’t as much inventory as there would be in a more normal year for the housing market. And that means there still aren’t enough homes for all the people who want to buy one. That keeps some upward pressure on home prices.Of course, these national trends may not reflect exactly what’s happening in your local market. Work with a local real estate expert to get a clear picture of what’s happening where you are.2025 Home Price ForecastsPercent Appreciation as of 12/4/2024

Homeowners Gained an Average of $28K in Equity over the Past Year10Homeowner Equity Gains over the Past 12 MonthsYear-Over-Year, Q2 2024Source: CoreLogicEquity is the current value of your home minus what you still owe on your loan.It goes up as:• You pay down your loan• Home prices appreciateWhat Is Home Equity?

11Bottom LineIf you're planning to move, the equity you've gained can really help. Curious about how much you have and how you can use it to help pay for your next home?Let’s connect.What If You Bought Your House Before the Pandemic?If you bought your house prior to the pandemic, the equity news is even better. According to data from the Washington Post, home prices have grown by almost 54% since December 2019, meaning your home’s value has likely increased significantly. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:“A typical homeowner accumulated $147,000 in housing wealth in the last five years.”To give context to how much equity can stack up over time, Selma Hepp, Chief Economist at CoreLogic, explains the total equity a typical homeowner has today:“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity . . .”How Rising Equity Helps YouWith how prices skyrocketed a few years ago, and the ongoing price growth in many areas today, homeowners clearly have substantial equity built up – and that has some serious benefits.You could use it to start a business, fund an education, or even to help you afford your next home. When you sell, the equity you’ve built up comes back to you, and may be enough to cover a big part – or even all – of your next home’s down payment.

. . . 48.3 percent of mortgaged residential properties in the United States were considered equity-rich in the third quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values.- ATTOM, a property data provider12

13The housing market is going through a transition right now. And sellers who aren’t working with an agent may not realize that. The Biggest Mistakes Sellers Are Making Right NowHere’s the downside. If you’re not informed, you can’t adjust your strategy or expectations to today’s market. And that can lead to a number of costly mistakes. Here’s a look at some of the most common ones – and how an agent will help you avoid them.1. Overpricing Your HouseMany sellers set their asking price too high and that’s why there’s an uptick in homes with price reductions today. An unrealistic price will deter potential buyers, can cause an appraisal issue, or lead to your home sitting on the market longer. An article from the National Association of Realtors (NAR), explains:“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers and result in unapproved appraisals . . .”To avoid falling into this trap, partner with a pro. An agent uses recent sales of similar homes, the condition of your house, local market trends, and so much more to find the price that’ll attract more buyers and open the door for multiple offers and a faster sale.

14Bottom LineIf you want to avoid making costly mistakes like these, let’s chat and make sure you’re set up for success.2. Skipping the Small StuffYou may try to skip important repairs, thinking you can pass the task on to your buyer. But visible issues (even if they’re small) can turn off potential buyers and result in lower offers or demands for concessions. As Money Talks News says:“Home shoppers like to turn on lights, flush toilets and run the water. If these basic things don’t work, they may assume you’ve skipped other maintenance. Homes that appear neglected aren’t likely to fetch top price.”If you want to get your house ready to sell, the best place to turn to for advice is your agent. A great agent will be able to do a walk through with you and point out anything you’ll want to tackle before the photographer comes in.3. Being Unwilling To NegotiateThe supply of homes for sale has grown. That means buyers have more options, and with that comes more negotiation power. As a seller, you may see more of today’s buyers getting an inspection, requesting repairs, or asking for help with closing costs. You need to be prepared to have those conversations. U.S. News Real Estate explains:“If you've received an offer for your house that isn't quite what you'd hoped it would be, expect to negotiate. . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits. . . consider offering to cover some of the buyer's closing costs or agree to a credit for a minor repair the inspector found.”An agent will walk you through what levers you may want to pull based on your own goals, budget, and timeframe.4. Not Using a Real Estate AgentNotice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell a house without an agent’s help the biggest mistake of all.Real estate agents have experience and expertise in pricing, marketing, negotiating, and more. That knowledge streamlines the selling process and usually results in drumming up more interest that can ultimately get you a higher final price.

15A Checklist forSelling Your HouseAs you get ready to sell your house, add these items to your to-do list. A real estate professional will also provide other helpful tips based on your specific situation.Make It InvitingOpen blinds or curtains to let the light inShow It’s Cared ForBoostCurb AppealCheck lightbulbs and replace as neededTake down personal photos or itemsFix anything that’s brokenGive every room a clear purposeClean your vents and baseboardsVacuum, mop, or sweep floorsDeclutterthroughoutOrganize countertops, cabinets, and closetsTouch up any scuffs on the wallsPower wash outdoor surfacesWash the windows (inside and out)Tidy up the landscapingFreshen up your entry Sweep patios, decks, and walkways

16A report from the National Association of Realtors (NAR) found two of the most difficult tasks for people who sell their house on their own are getting the price right and understanding and performing paperwork. Here are a few of the ways an agent helps with those difficult tasks.Getting the Price RightSetting the right price for your house is important when you’re trying to sell it. If you’re selling your house on your own, you might ask for too much money (overpricing). Alternatively, you might not ask for enough (underpricing). Either misstep can make it hard to sell your house. According to NerdWallet:“When selling a home, first impressions matter. Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing. . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”To avoid these problems, team up with a real estate agent. Agents know how to figure out the perfect price because we understand the local housing market. We use that expertise to set a price that matches what buyers are willing to pay, giving your house the best chance to impress from the start.If you’re thinking about selling your house on your own, called “For Sale by Owner” or FSBO, there are some important things to consider. Going this route means taking on a lot of responsibilities – and that can be quite a headache.Working with an Expert BeatsGoing Solo

17Understanding and Performing PaperworkSelling a house involves a bunch of paperwork and legal documentation that has to be just right. There are a lot of rules and regulations to follow, making it a bit tricky for homeowners to manage everything on their own. Without a pro by your side, you could end up facing liability risks and legal complications. As an article from First American explains:“To buy or sell a home you need to accurately complete a lot of forms, disclosures, and legal documents. A real estate agent ensures you cross every ‘t’ and dot every ‘i’ to help you avoid having a transaction fall through and/or prevent a costly mistake.”So, instead of dealing with the growing pile of documents on your own, team up with an agent who can be your advisor and help you avoid any issues.Bottom LineSelling your house is a big deal, and it can be complicated. Let’s work together to make the process smooth and free of avoidable stress.

Key Reasons To Hire a Real Estate Agent When You Sell Thinking of buying or selling a home? Here are just a few reasons why you’ll want a trusted real estate professional on your side.Industry ExperienceWe’re well versed in the housing market and know the ins and outs of the entire process.Pricing and Market ValueWe help you understand today’s real estate values when setting the price of a listing or making an offer to purchase your next home.Marketing and ExposureWe have effective marketing tools and networks to attract more buyers.Expert InsightsWe simply and effectively explain today’s market conditions and what they mean for you.Contracts and Fine PrintWe help with all the disclosures and documents necessary in today’s heavily regulated environment.Negotiation ExperienceWe act as a buffer in negotiations with all parties throughout the entire transaction.18

Agents have the know-how and expertise to set the ideal price for a quicker sale, prep, list, and market your home properly, represent your best interest in negotiations with the buyer, and handle the legal matters and fine print involved with a real estate contract and completed transaction.- The Mortgage Reports19

Let’s Chat.WINTER 2025 EDITIONI’m sure you have questions and thoughts about the real estate process.We’d love to talk with you about what you’ve read here and help you on the path to selling your house. Our contact information is below, and we look forward to working with you.Sandy Erickson Real Estate TeamREALTOR / CRS / SRES / ABR / PSABrokered by Realty GroupLicensed in Minnesotaagents@sandyerickson.comwww.sandyericksonhomes.com(651) 998-4900