The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors® (NAR) reports that there were 410,000 fewer single-family homes for sale this March than in March of 2020.
The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons.
Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s actually happening in the housing market today.
1. Homeowners Don’t Know if They’ll Be Able to Secure Their Next Home Before Selling.
In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. In today’s market, buyers have compelling reasons to purchase a home now:
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To own a home of their own
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To buy before prices continue to appreciate
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To secure a mortgage at a historically low rate, while they last
These buyer needs give the seller tremendous leverage.
That leverage may also be used to negotiate time to find a new home. For example, the seller could close now, then lease the home back from the buyer for a period of time while they find or build their next property. It’s a win-win scenario for both parties.
2. Homeowners Don’t Know if Their Current Home Will Sell for the Asking Price or Top Market Price.
This is the perfect time to maximize profits while selling a house. NAR just released a study showing that bidding wars are at an all-time high, with the average number of offers per listing doubling from 2.4 to 4.8 year-over-year.
Bloomberg reported:
“For the first time ever, the average U.S. home is selling for above its list price.”
If you're looking to sell at top dollar, now is the time.
3. Homeowners Don’t Know if They Will Get an Offer Without Their Home Requiring Work or Updates.
Due to the current inventory shortage, many buyers are more flexible with condition and are willing to tackle renovations themselves. A recent post advises:
“It may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior.”
So if you're worried about costly upgrades, this hot market may work in your favor.
4. Homeowners Don’t Know if They Can Have a Quick Closing Process.
When speed matters, consider these two aspects:
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Time to find a buyer:
According to the Existing Home Sales Report,
“Properties typically remained on the market for 18 days in March, down from 29 days a year earlier. Eighty-three percent of the homes sold were on the market for less than a month.” -
Time to close the deal:
All-cash sales made up 23% of purchases in March, often closing within 30 days.
For financed deals, Ellie Mae’s report shows the average closing time dropped to 51 days.
Bottom Line
Selling your house can feel daunting—especially in a fast-paced market. But today’s strong seller conditions are eliminating many of the traditional concerns. Let’s connect today so you can explore your options and take advantage of the market while it’s still in your favor.
