Everyone knows we are in a seller's market right now, throughout most of the country. What that means is there are far more buyers than sellers, so sellers can command higher prices and greater terms, while buyers are taking advantage of lower interest rates.
Despite what some think, even the recent increase in interest rates over the past few month, we are still sitting at around 5.5% on average, whereas, even a decade ago, mortgage interest rates were in the 1970s and 80s (which were around 12%+).
Why, then, do we have such a housing shortage? And why are sellers reluctant to sell?
Here are a few reasons sellers are hesitant to put their homes on the market, and solutions we have to ease seller concerns:
SELLERS CAN'T AFFORD TO BUY A NEW HOME
Sellers are also buyers. If and when they sell their homes, they have to find a new place to live, and become one of the zillions of other buyers competing to buy their next home. But, one of the greatest advantages to selling your home in this market is the fact your home likely has a ton of equity that can be used to purchase your next home. And, with these historically low interest rates, that equity will go a long way in making a strong offer and beating out the competition! The majority of buyers don't have a lot of cash to put down on a home, so they are losing out or placing dozens of bids on properties, only to end up empty-handed and out-bid by cash buyers or those with larger amounts of money down.
Sellers are often tempted to pocket most of their equity. However, the smarter move is to put as much of it into your new home as possible, because, not only will your interest rate and house payment be lower, you'll pay it off faster, and the money you save each month, will inherently help your budget. In essence, you'll keep more cash in your pocket in the long-run.
Buying a new home doesn't have to be a challenge, either! We have a partnership program with a vendor that will help you find your new home and get you moved before you put your home on the market to sell! And, yes, they will take care of the expenses so you are not paying two mortgages, two utility bills, etc. It's a win-win!
SELLERS DON'T KNOW THEIR OPTIONS
I always say, "You don't know what you don't know until you know it," meaning you cannot make informed decisions when you don't know the information. But, once you know the information, are educated about your option, then you can make an informed decision that will serve your best interests. Sellers often don't know what options they have to sell their home.
Typically, most sellers think there are basically two ways to sell their homes - Sell with an Agent of For Sale by Owner (FSBO). Often, they want to save money on commissions, so some sellers want to attempt to sell their home on their own (CLICK HERE to learn why selling your house on your own could cost you more), while others prefer to sell through an agent. However, there are far more options for sellers, today, than ever before in real estate history!
We are equipped to give our sellers options. From creative marketing solutions at name-your-own-price packages to cash offers to creative financing solutions, there are numerous options sellers know little to nothing about! But, we spend tons of time and energy to find solutions for our clients, including educating sellers on timing, home value, renovations, etc. so our clients get the most out of their home sale and their next purchase.
WAITING OUT THE MARKET FOR EVEN HIGHER PRICES
I cannot tell you how often I have heard sellers say they want to wait to see if the market goes higher, so they can make even more money out of their homes. This type of gambling is extremely risky and most often filled with regret, because at the end of the day, most people walk away disappointed and broke!
The housing market is much like the stock market - or any financial market - it ebbs and flows. And just as quickly as it went up, it can come crashing down. This leads some to believe we could be in a housing bubble, much like in the early 2000s. However, most industry experts don't believe that will happen due to the lessons learned from that crash and new safeguards implemented to help prevent the bubble bursting. However, that doesn't mean we won't trend back toward a buyer's market eventually.
Now is the time to sell if you're going to. It is much like fishing. If you want to catch a fish, go fishing while there are plenty of fish and they're all hungry! But, rely upon our expert agents to help you use the right bait! If you don't, even in this competitive market, those fish (buyers) who submit offers will "spit out the bait" (back out of the deal), if your house isn't competitive with other homes.
SELLERS DON'T WANT THE HASSLE AND INCONVENIENCE
One of the biggest discouragements for sellers is placing their homes on the market, keeping it spotlessly cleaned, prepped for showings, and then having tons of strangers walking through your home on tours. It is usually neither convenient nor comfortable! In fact, it often feels invasive.
Plus, the idea of investing money into a home you want to sell in order to update it, renovate it, fix repairs, sprucing up the place, and more are detractors to selling, too! Sometimes it all seems overwhelming and sellers decide to hold off because they either don't have the money or the time to get their homes ready to market.
However, we have options that fit just about every deterrent to selling. If fixing your home to get it ready for market is an issue, we have a partner that will handle renovations for you, and you pay nothing until the house sells. And you will know up-front how much it will cost, so you won't be surprised at closing and fear losing all your equity. In fact, your equity will likely rise due to the renovations!
If you don't want to deal with renovations, repairs, and updates, and simply want to move quickly and without hassle, we have options for that, too! What about a cash offer?
Sure, there are lots of brokers out there advertising "guaranteed offers" and cash offers, but the truth is they typically only have one investor or a handful of small local investors they work with, limiting the seller's options. We work with tons of large and small investors, so if a cash offer is what you are looking form, we will connect with all of our investors and create a competitive bidding process to get you the highest and best offer with the lowest hassle. That means you can just move and not worry about home repairs or getting your home ready to market. Just walk away!
SELLERS OWE TOO MUCH ON THEIR MORTGAGE
Lastly, sellers often avoid selling because they owe too much on their mortgage, have a second mortgage, or liens on their properties. I won't lie, these will need to be taken care of before the home sells. However, again, we have options with our lender network, who can help remove liens, payoff the mortgages, and still help you tap into reserved equity that can help you.
Don't let the fear of the unknown or lack of knowledge prevent you from selling. Contact us, TODAY, and speak with one of our trusted experts to determine what options you may have for selling your home. Worst case scenario, our advisors will be truthful, transparent, and honest about your options. If none of those options work, we'll tell you! But, it won't be until after we have uncovered every rock or hindrance to finding a solution. Because we work hard for you and we work hard to be problem-solvers!
Let Us Help You Find Your Way Home. CONTACT US, TODAY!