Real estate prognostications have predicted for years that the housing market would enter a phase of low inventory and high demand. A large part of this is that two generations of buyers are currently vying for the same homes. Baby Boomers looking to retire and downsize and first-time homebuyers looking for starter homes are in heated competition for similar-sized and priced homes.
On top of that, those homes are in short supply which leaves sellers in the sweet spot of the real estate market with more bargaining power. Here are some ways sellers can set up their homes for the maximum sales price.
Be Prepared for the Process
In an inventory-shorted market, sellers very much have the advantage, but should also be prepared for what’s about to happen when their home is listed. Homes in high demand will likely undergo bidding wars and short listing times. These things aren’t necessarily bad things, but if you’re looking to move, you may need to pack your bags quickly.
Houses are getting plenty of buyer attention already and most homes are getting multiple offers. On average, homes are getting just over 4 offers while staying on the market for just over two weeks. This means that buyers are more than eager to purchase a home and do so quickly. All of this demand is also driving prices higher–approximately 60% of listings are selling above their asking price.
Having What Buyers Need
Buyers may not only be buying starter houses but. may very well be purchasing a home for other reasons. Considering the changes in the workplace and education formats, many buyers may be looking for homes with additional office space, more family space, or larger outdoor areas. IF you can augment certain parts of your home to accommodate some of these buyer demands, you may be able to add value and demand for your home.
If you already have those amenities, then make sure they’re highlighted in listings and showings. Somewhere around 20% of all buyers identify that they need a home with more space. Granted, space can come in many forms, but regardless, having more space whether in the kitchen, office, or family areas will be a boost to your listing.
Low Interest Rates
No matter if you’re on the buying or selling side of a real estate transaction, low interest rates are good for everyone. As a buyer, low interest rates mean more house for your dollar while sellers can capitalize on low interest rates if they choose to move as well. Additionally, if you haven’t refinanced lately, you may very well be in for a treat when it comes to financing your new home.
Interest rates are driving the current buying boom as many potential homebuyers are seeing that the reality of homeownership is far more affordable than they may have previously thought. And whether or not you’re buying or selling, it’s not a bad idea to at least get pre-qualified just in case the right home or opportunity comes along. You never know when the perfect offer or home comes available.
If getting into a new home is more of a reality than a dream for you, then get in touch with Tidewater Mortgage Services, Inc. Tidewater has over 2 decades of experience helping new and experienced home buyers find the perfect financing solution!