This summer’s relentless heat waves have thrown a curveball at the real estate market, making it more challenging to attract potential buyers to open houses. If you’re planning to sell your home during these scorching months, it’s time to get creative and adapt to the weather.
Here’s a comprehensive guide to help you navigate the summer real estate market and ensure your home stands out.
Heat Waves Impacting Home Sales
According to recent reports, the extreme heat is one of the primary reasons for a noticeable decline in pending home sales, which are down 5.6% from a year ago. This marks the largest drop in eight months, as reported by Redfin. While some prospective buyers are holding off for potential Fed rate cuts, many are simply avoiding the outdoors during heatwaves.
“When we get a heat wave and it’s paired with humidity, people tend to just stay indoors in the air conditioning,” says Kristin Sanchez, a Redfin Premier real estate agent in Nashville, Tennessee.
Creative Strategies for Selling in Extreme Heat
To beat the heat and still attract buyers, consider these innovative strategies:
1. Hold Morning Open Houses
Kristin Sanchez has found success by scheduling open houses during the cooler morning hours, before the day’s heat becomes overwhelming. This approach can make your home more appealing to visitors who might otherwise be deterred by the blistering midday sun.
2. Embrace Virtual Showings
The pandemic has made virtual viewings and walk-throughs essential tools for real estate agents. These digital options are particularly useful for buyers relocating from other cities or states and provide a convenient way for local buyers to explore properties without braving the heat.
“Virtual showings have become a tool in a broker’s toolkit for selling,” says Terry Mainord, owner and founder of Terry Mainord Design, a staging company in Brooklyn, New York. Using these tools can help buyers get a better sense of the property, even if they aren’t willing to trek out in the heat.
3. Keep Buyers Comfortable
If you’ve removed window air conditioning units or ceiling fans for aesthetic reasons, consider providing handheld fans or refreshments to keep visitors cool. This small gesture can make a significant difference in keeping potential buyers comfortable during their visit.
Ensure Your HVAC System is Functioning Properly
A well-maintained HVAC system is crucial when selling a home during the summer. Buyers touring your home will quickly notice if the air conditioning is not up to par. Make sure the heating, ventilation, and air conditioning (HVAC) system is in top shape.
“We want to make sure that the HVAC systems or units are being serviced, that they’re being maintained properly, that they’re working properly,” emphasizes Sanchez. While this might come up during a home inspection, addressing it beforehand ensures that your home feels comfortable and showcases its best features.
Cost Considerations
Repairing or replacing an HVAC system can be costly, ranging from $100 to $3,000 depending on the necessary parts and extent of the work required, according to Angi, a home repair and contractor marketplace. Ashton Lawrence, director and senior wealth advisor at Mariner Wealth Advisors in Greenville, South Carolina, advises homeowners to carefully evaluate the costs and benefits of HVAC repairs or replacements.
A thorough analysis can help determine whether the investment will offer immediate tax benefits, increase the home’s market value, or both.
Potential Tax Credits and Incentives
Homeowners may qualify for the Energy Efficient Home Improvement Credit, even if they plan to sell the home in the near future. This credit applies to specific heating, cooling, and water heating equipment types. Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo, LLC in Orlando, Florida, recommends investigating state or local incentives that may also be available.
Documentation is Key
Maintaining detailed records of all home improvements, installations, costs, and dates is essential. This documentation can help increase your home’s basis when calculating the profits from your sale and any potential capital gains tax incurred.
Conclusion
Selling a home during the summer months can be challenging, especially with extreme heat deterring potential buyers. By adjusting your strategies and ensuring your home is cool and inviting, you can improve your chances of a successful sale.
Whether it’s holding open houses in the morning, offering virtual tours, or ensuring your HVAC system is in excellent condition, these steps can help you navigate the summer real estate market effectively. Stay proactive, keep potential buyers comfortable, and take advantage of any available tax credits and incentives to enhance your selling experience.
Also read: Home Prices to Dip in 2024, But Remain Unattainable for Many Buyers
