State of the Market update
Here we are almost 2 months into the new year and all I can say is I've never seen anything like this. The quantity of homes on the market is down- no, non-existent- compared to what I have seen in the last 10 years at this time. I have buyers literally BEGGING for homes. Sellers are hesitant to list for one reason or another but at the same time they are tempted to "figure it out" because buyers are throwing out crazy, over asking price offers justified by historically low interest rates (and very reasonable mortgage payments). So here I find myself with the goal of helping sellers to do that "figuring it out" to get everyone to their end goals, whether it be their first house, newer-better-bigger-house, or just on to the next step in their lives. Here are a few of my thoughts for sellers thinking about listing:
If you're worried about where to go when you sell- you should be. Its something that you need to consider before you capitalize on this seller's market. Ultimately, if you sell (which you will), the shoe will most likely end up on the other foot when you buy. The 15 over asking price offers you will receive is great as a seller, but when you're faced with it as a buyer its disheartening. Think about adding a rent-back-clause to any offer you accept. This is a better situation than a Hubbard (which is when you say the sale of your house is contingent on you finding a new one) for 2 reasons. The first, is that any offer you put on a house to buy will not be contingent on you selling another property which makes your offer stronger. The second is that you have a place to go without having to move twice, until you find a new place to buy. It really helps take the edge off and allows all parties to make an informed decision. Rent back not an option for your buyers? That's ok. Use your listing agent as a tool to help you find options for short term housing like an apartment or condo. This may be pricey, but if you know what its going to cost you in advance for a 6 month lease, you can take that into consideration when you accept an offer on your home.
Next scenario- maybe you have an investment property with tenants and you want to sell but have been facing eviction moratoriums or the thought of disrupting a peaceful tenant/ landlord relationship. This is a valid concern but if you don't see yourself as a long term landlord, you should seriously consider selling with the help of an agent. Offer them the free services of your listing agent to help them find a new place. Another option is "cash for keys"- literally write them a check for them to leave. You will most likely make it back and then some with a high sale price. Another option is selling the property with tenants in place. Maybe the buyer can wait until the lease is up for the opportunity to not compete with other buyers who don't have time on their side. There are also investors out there that may be looking to continue using the property as investment and simply want to take advantage of the low rates.
Regardless of why you're hesitant to sell- consult an experienced agent in your market for a pricing analysis and a heart-to-heart discussing on your personal concerns. An honest agent won't sugar coat the state of the market but will help you find a solution that best fits your needs. For the month of March, Katie & Co. is donating $50 to Companion Pet Rescue for every free listing consultation we schedule.