Opportunities often arise when a market is out of balance. Right now the real estate markets are severely out of balance with far more demand for housing than supply. Part of our job as real estate advisers to highlight and explain these opportunities.
Sellers currently have the upper hand in the market, and therefore the opportunity. However, slight variations in the current environment mean that this is a more valuable opportunity for some owners than others.
You should already be thinking about selling.
Selling real estate is expensive, even beyond fees for marketing and advisory services. There are conveyance taxes, attorney fees, inspection negotiation, and moving costs. Because of the expenses, we don’t recommend making impulsive decisions about moving. Make sure you know why you’re moving and what goals your sale will help you achieve. We can help you think through these issues, if desired.
You should have somewhere to go.
Putting your home on the market in an environment that favors sellers means that someone is likely to want to buy your place. You will need to be fully moved out by the closing date, which is usually within about 60 days. Do you know where you will go? Opportunistically selling to take advantage of a favorable market forces you to come up with an alternative living situation.
You should be okay with strangers coming into your home.
The COVID pandemic is part of the reason that so many people want to buy. But it also means that those potential buyers could be bringing the virus into your space during their tour. We take precautions to try to limit the risk, but there is no way to totally eliminate it. You will still need to be willing to allow strangers into your home as part of the selling process.
Who is benefiting the most?
There are two main ways that sellers are benefiting from the current environment. Highly desirable homes are selling for more money. Nearly all homes are selling more quickly.
We are not in a market where a seller can set an unreasonably high asking price and expect buyers to show up and pay it. The main way that prices are rising is through bidding wars. A couple buyers who really like a home can push the price up a surprising amount – especially if one or more of them has lost out on other homes.
I think the most interesting advantage of this market is the liquidity. There are many homes that have unique features that just don’t speak to a wide range of buyers. As a result they often take a while to find the right buyer. The severe lack of options in the current market means that buyers are more open minded and willing to consider homes they might have ruled out a year ago.
An adviser (like me!) can help you evaluate your options before making any decisions. From there we can prepare your home for the market to maximize its value and streamline your sale experience.