Articles Tagged "seller's market"

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December
22

If you're like 60% of people, you probably dread the idea of moving. And we get it! Packing, loading, unpacking – it can all be a bit of a drag. So you've probably considered simply reimagining the space you're in as an alternative to moving. But that has its own drawbacks, like trying to live around the messiness and noises of home improvement.

At the core of either of these decisions lies the true issue: you're not happy with at least some part of your home. Making the choice to renovate or move to a new home entirely isn't easy, but we're hoping the following guide can help you make an informed decision one way or the other.

Consider the Costs

Try to think beyond the profit, because believe it or not, selling your home can be costly. Everything from touch-ups and minor repairs to staging and various closing costs can rack up a high price. That's before you even consider paying for your new home!

Then again, depending on the scope of your renovations, you could be looking at a hefty price tag as well. Renovations also typically require immediate out-of-pocket costs, and as projects go on, you could see additional costs enter the picture.

Do You Like Your Location?

Do you love your neighborhood? Are your kids in a great school district? Are you an active fixture in your community? Sometimes the one thing you fall out of love with about where you live is…where you live.

If you've found you adore your community but your home isn't meeting your needs anymore, perhaps renovating is the route for you. Conversely, if you'd rather discover a new neighborhood, you might choose to start fresh with a move.

Think Long-Term

It's generally accepted that what you pay for in renovations, you probably won't get back when you sell. There are exceptions to this, of course, but for most folks it holds true.

So if you plan to be in your home for another 10 years, remodeling is a good idea. You'll get to enjoy the results of all your hard work and money spent. If you don't see yourself staying put for long, however, it likely won't be cost-effective to sink money into renovations.

Research the Market

For the past year and more, the market has been particularly ripe for sellers. And while that might influence your decision to sell and move into a new home, keep in mind that you'll still need to buy a new home. The market has been significantly more challenging for buyers.

The market is always fluid, however, so whenever you find yourself pondering renovations versus selling, do yourself a favor and check in on your local market.

 

What you choose will ultimately come down to your unique situation. If you're looking for an agent's expert opinion on the matter, check in with one of Watson's knowledgeable real estate pros!

May
6

The real estate market has been on fire lately, and that figures to continue well into the summer. New homes are flying off the market, often within days of listing and for more than the asking price. Sellers are unquestionably in the driver's seat right now, but that doesn't mean you can get away with speeding. Here are a few reasons why pricing still matters in a seller's market.  

High Prices Can Alienate Buyers

As inflating sales prices continue, it's easy to start seeing dollar signs. If the market says you can get more than your home's value, why not list at that amount?

For one, it alienates potential buyers. Buyers are already at a disadvantage in the current market, and by putting up your home for an exorbitant price above market value, you could be pushing away valuable contenders who don't have as much spending power.

Create a Bidding War

A fair price leaves room for a bidding war – another reason why pricing still matters in a seller's market. Multiple buyers will be in competition for your home – a precious commodity in a low-inventory landscape.

Competition means a steady flow of offers all trying to one-up each other. That is, unless you force the bidding to start at an artificial high point with an expensive asking price. While more offers can make choosing the right one more complicated (the right agent will make it easier, though!), it's often in your best interest to create a bidding war.

Get Off the Market

With such low inventory, it's possible your home will sell fast even if it is overpriced. However, it still remains a risky move. You'll want to lean on your agent's knowledge and market expertise to ensure your home's priced fairly based on several factors, including location, condition, and more.

A boosted price could keep away gun-shy buyers and leave your home dwelling on the market for an extended period. Especially in a market where homes for sale get purchased extremely quickly, you don't want to be the one home that isn't moving.

Want to know more about why pricing still matters in a seller's market? Contact one of our real estate agents!

November
6

With the current market favoring sellers, you're in a great position if you're looking to get your home sold. But the excitement of selling in a sellers' market often overshadows the fact that you're not just a seller; you're a buyer, too. And if your home sells before you've secured a new one - which is likely to happen in the current market - you could find yourself in a compromising situation. You always have options, though, and we're here to remind you what they are. Here's what you can do if your home sells faster than expected.

Captain Obvious Says "Buy Your Next Home Before You Sell"

The Captain may have a point, but that doesn't mean it's always feasible. Sure, you should try to secure your next home before selling your current one, but any number of factors can limit your ability to do so; especially in a sellers' market, when listings are often snatched up within days of hitting the market. If you don't have a home lined up before finalizing the sale of your house, at least try to get pre-approved for a mortgage. You'll remove some of the waiting period that comes with financial pre-approvals and at least be one step ahead in your home search.

Negotiate a Post-Possession Agreement

With some savvy negotiating and good bit of trust, you can negotiate a post-possession agreement to essentially rent your existing home a little longer after closing on the sale. If that sounds extremely convenient, well, it is. But it's also very risky for the buyer, so expect negotiations to be tough. This is where a skilled and experienced agent will come in very handy for you.

Check Offseason Vacation Homes

Depending on when you close, you could find a great deal on a vacation rental during the offseason. Demand is naturally lower in the offseason. You'll likely find one that's furnished, and most offer stays of up to a month or more.

Bunk with Friends or Family

Maybe your best friend has an extra bedroom? If not, you can take solace in knowing that your dear old mother will always welcome a visit. In all seriousness, friends and family can possibly put you up for a few weeks if you need it.

Find Someone in the Opposite Position

This means someone who's bought a new house and moved before their old home has sold. They may be willing to let you rent the home out for a brief period – it'll help them avoid paying extra on two mortgages at once. Of course, it also means you're subject to the owner's desire to sell; should they decide it's time to finally find buyers, it'll be time for you to move out. This is unless they've decided to convert the home into a full-time rental, which you'll want to determine before making your own decisions.

Extended-Stay Hotel Suites

Many hotels offer suites designed specifically for longer stays. These are sort of a middle-ground between a rental home and an apartment. You'll have a degree of privacy and access to the amenities you need, but you'll have even less ownership over the suite than you would in an apartment. But if it's only for a temporary stay, you likely won't be bothered by that.

Invest in a Storage Container for Your Stuff

If you're moving into a furnished rental or staying with a friend for a few weeks, you need somewhere to put your stuff in the meanwhile. Consider looking into a portable storage container. Many companies will drop off the unit, let you pack it up, then bring the container to your new house when you're ready. If you just need to store things for a night or two, check with your moving company; they may let you keep their moving truck overnight for an additional fee.

September
23

A seller's market occurs when there are more buyers than there are homes for sale. As COVID-19 has impacted our daily sense of normal for the majority of this year, it's also created a seller's market. And as you might imagine, a lower inventory can make buying a home in a seller's market challenging. But it's not impossible! We're here to help you make the right moves so that you're not left out in the cold (figuratively, of course). Here's what you can do to make buying a home in a seller's market a lot easier.

Choose the Right Agent

Navigating a seller's market as a buyer is risky business on your own. Securing a sharp, experienced agent to be in your corner will alleviate much of that risk.

Get Pre-Approved First

Pre-approval not only gives you the security to make a move fast – a must in a seller's market – but it also gives the seller confidence that you mean business. That goes a long way.

Don't Wait to Make Your Best Offer

In a buyer-slanted market, it might be more attractive to offer something lower than the asking price and negotiate from there. But when the market favors the seller, you're much better off making your best offer up front. You don't want to invite competitive interest by submitting a lower offer.

Your Best Offer Still May Not Be Enough

Despite leading with your best offer, you still may need more to secure the purchase. Buying a home in a seller's market means other buyers will be in the hunt for the same home. Prepare with your agent to continue bidding if your first offer isn't enough.

Make Quick Decisions

Seller's markets require buyers to think fast and act even faster. Your favorite listing today could be off the market tomorrow. You should of course still do your due diligence; you want to be decisive but not reckless. If you fall in love with a home, don't be afraid to make a move.

Be Flexible

Flexibility matters in a seller's market. For one, you can make your offer even more attractive by agreeing to terms that are convenient for the seller. Maybe there's a piece of furniture they don't want to take with them. Let them! It might be a bit more work for you after closing, but it might make closing the home that much easier. You have to be flexible with your own wants and needs, too. In a buyer's market, you might have more wiggle room to find a house that checks every box on your wish list. But buying a home in a seller's market could mean compromising on certain things. Maybe the style isn't quite what you love, or maybe the location is a little off from where you'd prefer. If these are must-haves, then by all means wait. But if you can determine those factors that aren't as important, you'll have a less stressful time.

It May Take More Than Money

After a job interview, you may send a personal handwritten note to your interviewer as a follow-up and reaffirmation of your interest. The same gesture can make a difference when buying a home in a seller's market. Let the seller know the home is as important to you as it is to them.

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