4 Big Incentives for Homeowners to Sell NowReturn to Blog
Category: Real Estate
The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports 410,000 fewer single-family homes for sale this March than March 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.
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 and a quick explanation of what’s happening in the housing market today.
1. Homeowners don’t know if they’ll be able to secure their next home before selling: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 gets 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:
- To own a home of their own
- To buy before prices continue to appreciate
- To secure a mortgage at a historically low rate, while they last
These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a great price. However, leveraging may also help negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s cost, 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.
Which gives the buyer what they want — and the seller receives what they need. It’s a literal win-win negotiation.
2. Homeowners don’t know if their current home will sell for the asking price or top market price.
Now 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 buying offers. If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.
3. Homeowners don’t know if they will get an offer without their home requiring work or updates.
Again, leverage is the greatest strength a seller has in this market. Due to the lack of homes for sale, many buyers are more willing to take on home improvement projects themselves to get the home they’re seeking.
If a seller is worried about doing work or updates on their home, they must realize that today’s historically low inventory likely renders these projects less critical to the sale of the house.
4. Homeowners don’t know if they can have a quick closing process.
When speed is focal, there are two points sellers should look at: The time it takes to find a buyer for the home and the time it takes to close the transaction. 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 the transaction, all-cash sales accounted for 23% of all home purchase transactions in March. All-cash sales can usually close in thirty days. 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.
The bottom line is selling your house can be daunting, especially in a fast-paced market. However, the fact that we’re in such a strong sellers’ market eliminates many common concerns. Contact Darryl Glass today to learn more about the opportunities for homeowners who are ready to sell. You can also schedule a call with Darryl directly on his calendar by tapping here.
This article originally appeared on keepingcurrentmatters.com.