If it seems like today’s real estate market is like a hot air balloon just carrying sellers up, up, and away — you might be right. Homes are selling easier, more quickly, and at higher prices in almost every market. And many sellers have been taking advantage!
But as the lack of inventory continues, it may be hard for the unique success of the last 18 months to stay full speed ahead. Homeowners have begun to express concerns that selling their homes now could be challenging for a few specific reasons.
What if I can’t find a new home after I sell this one?
With such low national inventory, it’s a very real trepidation that it may be difficult to secure a home before selling the one a homeowner currently owns. Thankfully, this is where leverage comes in.
In negotiations, both sides use leverage — any perceived advantages that could give them the upper hand in achieving the agreement they desire. In today’s market, the seller holds a huge amount of leverage because buyers want to own their own homes, buy before prices go up and further, and secure their mortgage at the lowest rate possible.
So if selling at a great price is important to the seller, but they also need some other benefits, the buyer is most likely to accommodate. Sellers should alleviate their fear of finding a new home by getting creative with the sale of their current one!
For example, they can use the leverage from selling their home to write a contingency into the contract stating the sale is not finalized until theseller signs a purchase agreement to buy a replacement home. Or, the buyer, enjoying low mortgage rates and other benefits of the sale, may allow the seller to rent from them until a new home can be secured.
I probably can’t get top dollar unless I update or renovate.
While we do always suggest showing your home in its best light, performing home renovation projects or updates is not always necessary — and especially right now. With the popularity of the DIY movement, many buyers are more willing and interested to make their own home improvement projects and create the home features and finishes they want for themselves.
And due to the low inventory of homes for sale, even the who aren’t DIYers are less likely to pass up on a home just because it needs some improvements.
LIST WITH ELIZABETH® would never suggest over-investing in your home with upgrades right before selling… buyers might want to make changes anyway! So we can help you to determine which projects might be necessary to maximize your listing, like small cosmetic updates, if anything at all.
Will my home sell for asking price… or more?
Obviously, now is a perfect time to maximize profits while selling real estate. Agents report seeing higher than ever numbers of offers on homes — doubling in most markets! — and buyers report being outbid, sometimes with outrageous and/or all-cash offers well over the asking price.
Bloomberg recently reported that for the first time ever in the U.S., the average home was selling for above its list price. So it’s natural that a seller would have some anxiety over choosing a listing price, and knowing whether their home will sell for that price… or more.
But this doesn’t mean that buyers should go crazy with pandemic greed or expect a fever pitch when listing and accepting bids on their homes. While it’s true that there’s probably no better time to sell than right now, sellers should trust their agents to help them set an appropriate list price and handle offers accordingly.
Even if homes are selling over list price, that list price matters now as much as ever. Since home listings now include virtual home tours, it’s easier for buyers to eliminate a home without ever seeing it in person. Overpricing your home scares potential buyers away, even those that may end up willing to pay more to outbid another buyer. Buyers may also assume an overpriced home is owned by someone not willing to negotiate.
Selling is always a little bit daunting, but the strong seller’s market we are currently in does add some extra anxieties. The bottom line is that even in an exceptional seller’s market there are still very real concerns that sellers have about selling their homes right now. LIST WITH ELIZABETH® is happy to ease those fears and explain why a homeowner can actually take advantage of extra opportunities and rest easy with the right agent working for YOU.