The housing market has seen significantly less single-family homes for sale this March than in March of 2020. This is part of the reason behind the lack of inventory we are experiencing. 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.
What will it take for homeowners to feel comfortable selling their houses? Here are the four major homeowner concerns and a quick explanation of what’s actually happening in the housing market today.
Homeowners don’t know if their home will require work or updates.
Leverage is the biggest strength a seller has in the current market. Many buyers are more willing to take on home improvement projects to secure the home they’re after due to the lack of homes for sale.
As a seller, your time might be better spent working on smaller scale updates, like refreshing some paint. It is always recommended and wise to work with a real estate professional to determine which projects that will maximize your listing.
If a seller is put off by the idea of doing these updates on their home, it’s important for them to realize that today’s low inventory makes these projects less critical to the sale of the house.
Homeowners are not sure if their home will sell for the asking price or top market price.
This is the idea time for sellers to maximize profits. NAR just released a study showing that bidding wars are at an all-time high. 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.
To put it simply, if a seller is looking for a top-dollar sale, there’s no better time to sell than right now.
Homeowners are concerned about securing their next home before selling.
In today’s market, buyers have compelling reasons to purchase a home: To own a home of their own, to buy before prices continue to appreciate, or to secure a mortgage at a historically low rate.
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.
Homeowners don’t know if they can have a quick closing process.
If you’re looking for a quick closing process, there’s never been a market in which finding a buyer and closing the deal has taken less time.
When speed is important, sellers should look at the time it takes to find a buyer for the home and the time it takes to close the transaction.
Selling your house in a fast-paced market can be stressful. Let’s connect today so you can learn more about the opportunities for homeowners who are ready to sell.