The housing market locally and nationally continues to soar. The only headwind that could take it off course is the lack of available inventory. The National Association of Realtors (NAR) reports that there were 410,000 fewer single-family homes for sale this March than in March of 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons. Here are 4 incentives for homeowners to sell now.
Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns, four incentives for homeowners to sell now, and a quick look at common concerns and how to overcome those concerns in the current market.
A strong agent listing agent is going to help a seller negotiate terms that give them time to find their next home. In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on the ability to award benefits or eliminate costs on the other side.
In today’s market, buyers have compelling reasons to purchase a home now:
These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a good price. However, this leverage may also be used to negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller finds a new home or has one built.
This gives the buyer what they want while also giving the seller what they need. It’s a true win-win negotiation.
This is the perfect time to maximize profits while selling a house. NAR just released a study showing that bidding wars are at an all-time high. The study reveals that when comparing the first quarter of last year to the first quarter of this year, the number of offers on homes for sale doubled from an average of 2.4 to 4.8 offers.
Whenever there’s a bidding war, the price of the item for sale normally escalates. Bloomberg recently reported:
“For the first time ever, the average U.S. home is selling for above its list price.”
If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.
Again, leverage is the greatest strength a seller has in this market however COVID has made buyers a bit less likely to want to take on projects. Locally, remodelers are busy. We believe that even in the current market, sellers are better off tackling some work before selling but nothing major. We spend a lot of time with each of our sellers going through a home to make a list that will maximize profit.
A recent post on whether or not to renovate before selling notes:
“As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.”
If you are worried about what work or updates your home needs before selling, please give us a call. We have a great group of contractors that prioritize our sellers.
When speed is important, there are two points sellers should look at:
In the latest Existing Home Sales Report, NAR explains:
“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. Eighty-three percent of the homes sold in March 2021 were on the market for less than a month.”
Eighteen days is fast, and it’s a new record. Here are the days the average house is on the market in each state:
Regarding the time it will take to close a transaction, all-cash sales accounted for 23% of all home purchase transactions in March. All-cash sales can usually be closed in a matter of days.
If a mortgage is necessary, the most recent Origination Insight Report from Ellie Mae shows:
“Time to close all loans decreased in March. The average time to close a purchase fell to 51 days, down from 53 the month prior.”
If you’re looking for a quick closing process, there’s never been a market in which the two-step process (finding a buyer and closing the deal) has taken less time.
Selling your house can be daunting, especially in a fast-paced market. However, the fact that we’re in such a strong sellers’ market makes it better and easier for sellers. Let’s connect to discuss additional incentives for homeowners to sell now!