According to a recent report, heat waves this summer have slowed down pedestrian traffic in some areas. Summer home sellers may need to get creative to beat the heat.
Pending home sales fell 5.6% from a year ago, the biggest drop in eight months. according at Redfin, a real estate brokerage. While prospective buyers may be waiting for possible Fed rate cuts to buy homes, as head of economic research Chen Zhao pointed out in the report, another reason for weaker demand is excessive heat in some parts of the country.
“When we have a heat wave and it’s combined with humidity, people tend to just stay indoors in the air conditioning,” said Kristin Sanchez, a Redfin Premier real estate agent in Nashville, Tennessee.
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Morning open houses, virtual showings
Selling a home during the sweltering summer heat will require more flexibility from sellers, experts say.
“I’ve had a lot of good luck getting my houses open in the morning before the heat of the day sets in,” Sanchez said.
Sometimes window air-conditioning units or ceiling fans are removed for design purposes or to make the space look more inviting, said Terry Mainord, owner and founder of Terry Mainord Design, a stage company in Brooklyn, New York.
If that’s the case, sellers could offer hand fans or refreshments to help potential buyers stay cool, Mainord explained.
Virtual viewings and tours have also become a common resource for real estate agents since the pandemic, Mainord said, especially if the buyer is moving from another city or state.
Using these tools can also help buyers get a better feel for the property, even if they aren’t willing to travel in the heat.
“Virtual viewings have become a tool in a realtor’s toolkit for selling,” said Mainord.
Make sure the HVAC system is serviced
If you’re hoping to sell your home during the summer, make sure your home’s heating, ventilation, and air conditioning system is working properly. Buyers who tour your home in the heat are likely to notice the effects of it not working properly, such as poor airflow, dampness, leaks, or air that isn’t cold.
“We want to make sure that the HVAC systems or units are maintained, that they’re properly maintained, that they’re working properly,” Sanchez said.
While the condition of the system may come up in a home inspection, “it’s better to get in front of it and make sure the house feels comfortable and buyers walking in can tell things are already working right,” he said. . .
The cost of repairing or replacing a home’s HVAC system can be expensive and varies widely. the bill can be as low as $100 or as high as $3,000, depending on factors such as the cost of certain components, according to Angi, a home improvement and contractor marketplace.
“HVAC systems can be very expensive,” said Ashton Lawrence, principal and senior wealth advisor at Mariner Wealth Advisors in Greenville, South Carolina.
A homeowner looking to replace an HVAC system should do their due diligence to “put pen to paper and crunch the numbers” to see which will yield the most benefits, whether it’s “immediate tax implications and tax savings.” or “increase the market value of the real house,” he said.
You may be able to qualify for it Energy efficient home improvement credit even if you plan to sell the house at some point, for example, said Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo, LLC in Orlando, Florida. The tax credit applies to certain heating, cooling and water heating types of equipment. Be sure to consider what state or local incentives you may qualify for.
Be sure to keep documentation that can show all home improvements, fixtures, costs, and dates. These can help you increase the “basis” of your home when you calculate the gain on your sale and any capital gains tax.
