Why There’s Never Been a Better Time to Be a Seller
It’s easy to assume home sellers simply wait for the alignment of planets and blessings from the celestial real estate overlords, but buyers actually purchase your home because they value the space you developed. When it comes to real estate, careful preparation is rewarded!
Buying a home is a great way to build wealth, and as far as earnings are concerned, the market truly does reward strategic renovations and patience.
“My child, you have done well. I bless you with 20 percent over asking price.”
The thought of selling a house is always exciting, and to those in a position to sell, we say now is the best time to do so.
Why? Because it’s spring!
Spring brings me allergies. Skip to the good part!
So, take your allergy medication, and discover these five reasons that prove this spring is the perfect time to sell your home.
1. Your Home Is in High Demand
Let’s start off with an important statistic. Compared to this time last year, buyer showings are up (booking more tours of listings at) a whopping 51.5 percent, according to ShowingTime. That’s not common. If you’re on the fence about whether to sell now or later, that level of buyer interest should be thoughtfully considered.
Partly due to low interest rates, buyer demand is high, and people are craving new homes.
Your home is a plate of nachos to a hungry buyer. Man…my diet regrets using this metaphor.
Daniil Cherkasskiy, chief analytics officer at ShowingTime, says:
“Demand for real estate remains elevated and continues to be affected by low levels of inventory. On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”
This is a great position to be in if you’re ready to sell a home—but really bad if you’re on a diet and saw those nachos…
2. There Aren’t Enough Houses for Sale
Many people collect unique items, such as rare vinyl records or designer watches, in the hopes their value increases over time. The value of those items, though, always depends on the actual demand for them.
This is why purchaser demand for homes has surged so much. The market is basically running out of available houses for sale.
We’re not scaremongering or exaggerating here. Consider what Realtor.com reported:
“Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6% drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.”
The National Association of Realtors also says the inventory of existing homes for sale is dropping. This means houses are selling right after they hit the market.
How fast? NAR reports homes being on the market only twenty-one days.
To put that into perspective, that’s only ten days longer than it takes broccoli to spoil at room temperature.
People are selling homes almost as fast as we turn our backs on leftover veggies.
Sellers should take advantage of this. Buyer demand and a low supply of houses position sellers very favorably.
3. Sellers Have Leverage in Today’s Market
We now know buyer interest is hotter than rising spring temperatures. Congratulations to everyone in a position to sell! Now what?
Well, NAR agents report an average of 3.7 offers per house, as well as an increase in bidding wars.
This means the only thing limiting your ability to negotiate the best possible price right now is your own mercy.
Offer a bid price under $1 million, and my cat will reign down carnage.
Seriously, the conditions are right. It’s important to talk to the right local real estate agent to know exactly how home sellers are taking advantage of this current market demand.
4. It’s a Great Way to Use Your Home Equity
Did you know the average homeowner gained $17,000 in equity over the past year?
Since then, that number has only grown as home values continue to appreciate. This is why it’s essential to consider equity when strategically improving your home.
Mark Fleming, chief economist at First American Financial Corporation, says:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home—the wealth effect of rising equity.”
Think of “equity” as essentially the amount of money you’d receive in your pocket after paying off your mortgage loan. As your home equity increases, it can help you reach future goals, such as buying your dream home…or, you know, a jetpack.
We strongly advise you to not buy a jetpack. This time.
5. It’s a Chance to Find a Home That Meets Your Needs
2020 was a turbulent year, but it created opportunities in the real estate market that wouldn’t ordinarily be possible.
All the extra time spent at home has helped many people reevaluate their home-related needs and values. Future home sellers also got a chance to realize what their home equity could do for them if they make a smart plan.
Current market conditions are set for sellers to capitalize on their equity and get what they want out of a house—whether that’s space for a home office, an area to homeschool the children, an in-home gym, or anything else.
The bottom line is…today’s housing market is advantageous to sellers, and committed real estate agents are finding many opportunities for their clients.
If you’re ready to sell your home or want to learn about your options this spring, just send us a message, and we’ll happily go over your options with you. With us, you’ll discover real estate as it should be!
