The housing market is hot!! The only thing that is a problem is the lack of inventory. The National Association of Realtors (NAR) reports that there were 410,000 fewer single-family homes for sale in a month of 2021 compared to the same month of 2020. To keep the market hot, more sellers need to list their homes. However, many homeowners are concerned that selling their homes could be challenging for several reasons.
Here are the four major challenges for sellers and ways to overcome them in today’s market.
1. What if I Can’t find a new home before my current home closes?
Due to the market, we have at present, the seller has a ton of leverage which helps in negotiating the sale. This leverage may be used to negotiate time to find their next home. One way to do this is for the closing to be extended for a longer period of time than the normal 30 to 45-day time frame.
This gives the buyer what they want ( a new home) while also giving the seller what they need ( time to find a new home too). It’s a true win-win.
2. What if my home does not appraise for the sales price
In this market, most listings are selling over list price. While this is great for the seller’s bottom line, there is always the concern that the home will not appraise for the selling price.
The concern for the seller here can be overcome by the buyer offering to make the offer not contingent on the appraisal when possible and if not possible, to make up some or all of the difference between the appraisal price and the selling price. It comes down to negotiation!!
3. What if the buyer asks for a lot of repairs from the home inspection?
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 some of the repairs or updates needed that show up on the home inspection. This can be negotiated in the contract as well.
Many buyers are offering to buy homes “as-is”. This means they won’t ask for repairs from the home inspection. However, they still have the right to have one.
4. What if there are delays to the closing?
When speed is important, sellers know that the home will sell fast, however, the closings are being delayed due to appraisal, lender, and title work timeframes.
While a cash offer solves some of this, all-cash sales account for only around 23% of all home purchases at present.
If a mortgage is necessary, there are even more delays that are possible. Most loans at present are taking 5-7 weeks to close in our area. Knowing this, make a plan for a longer closing from the beginning so there are fewer surprises right before closing.
Selling your house can be challenging, especially in a hot seller’s market. However, the fact that we’re in such a strong sellers’ market has its advantages as well when you have a great agent to guide you through the process.
Are you thinking of selling your home but have concerns? Contact us today to learn more about the opportunities for sellers in this market. We know how to negotiate to your advantage and market your home to get the most money possible!!