There is high buyer activity and a historically low number of houses for sale right now. The perfect time for homeowners to sell their house is when the demand for homes is higher than what’s available for sale. Right now with the rising cost of new construction due to the lack of materials, the lack of vacant land available and shortage of builders many home buyers are strictly looking at existing homes as new construction is no longer within their budgets. Here are a few ways that low inventory on existing homes can help you get a great deal if you’ve been on the fence about selling your current home.
Better Seller Terms
When there is a seller’s market like there is today, it is much more like being in the driver’s seat when you choose to sell your home. The ball is in your court and you have the power to sell on your own terms because low inventory means less choices for buyers. Buyers are more likely to work with you if it means they can purchase a home in a market where they are hard to find. But just because Seller Terms are better it doesn’t mean they will always be ideal for a particular buyer and things could also go south fast if you don’t have an agent working for you in your best interest. Just because there is a great buyer pool out there, it doesn’t mean that buyers aren’t going to want to have defects in your home repaired. They may by-pass the home entirely because it also may not pass their lender requirements. FHA and VA appraisals will call out items such as chipped paint, broken glass, rotting wood, and other defects. In these instances lenders may not fund the loan unless repaired.
Greater Investment Return
ROI is a major focus in real estate. As prices rise, homes gain value. This drives equity increases – in just the second quarter of last year, homeowners were gaining an average of $9800 in equity. Growth in equity can give you the ability to put that money toward a down payment on your next home.
Higher Prices
With buyer numbers high and seller numbers low, home buyers are having to enter bidding wars for the houses they want. This competition drives up the price of your home – simple supply and demand! This is absolutely a seller advantage, and could potentially net you more for your house when you finally close the deal.
Contact me for a free Market Analysis if you are thinking of possibly selling in 2021, let’s get you set up for success!
