You may have been considering putting your home on the market to sell but are unsure due to current real estate market conditions. You know can sell, but are not so certain you’ll find a home to buy. Here are five “perks” of selling now to take under consideration:
Perk 1: Take Advantage of Buyer Demand
Many buyers are looking now to purchase homes. (First-time home buyer properties are especially in high demand.) If you sell now, these buyers will take notice right way and your home should sell quickly. This will mean having to deal with less open houses and showings. The entire selling process will be smoother. Once your home is “sold pending”, you won’t need to worry about keeping it “show ready 24/7”.
In 2021, homes were typically on the market for a single week (as compared to three weeks in 2019 and 11 weeks in 2013.)
Perk 2: Easier Terms for Home Sellers
In this market, contract terms favor the home seller. You can set the closing date and occupancy to your preferences. You do not need to offer home warranties, concede money for home repair or have to offer “carrots” to make the deal more alluring to buyers. With fewer sacrifices when selling, you are giving up less. According to the National Association of Realtors, 75% of home sellers did not offer any incentives to attract buyers in 2021.
Perk 3: More Money For Your New Home
With the home inventory shortage many homes on the market are receiving multiple offers. Competition for homes is driving prices upward. Sell your home now for a high market price and you will have more money to purchase that new home. This does not mean asking too much for your home. If you overprice, the selling process will slow down and you may lose out on multiple, escalating offers. Talk to your agent about a pricing strategy.
Perk 4: You Can Trade Up to a Better Home
Upgrading your home to one that is larger or better suited to your needs is a great reason to sell now. Lock in a still-low mortgage rate. Even if the home costs 10 to 20 percent more, you will come out ahead in the long run in your new home.
Perk 5: Max out the Equity in Your Home
Now is a great time to take advantage of your home’s equity. Take your current mortgage balance and subtract it from your home’s estimated market value. That sum is your home’s equity. Your goal is to have enough equity to pay off your current mortgage and additional money to make a 20% down payment on a new home.
Should You Sell Now?
If you are motivated, you can handle the home-buying process once your old home has sold. It will take tenacity and deep understanding of the market. Working with your real estate agent will play a key role in hearing about homes coming onto the market. Patience and pricing strategies will be important factors in buying that new home.
If you’re willing to either rent or move in with family in the interim, you will have more time to find your new home. Also, you may be able to negotiate renting your current home from the new home buyer.
Not interested in a double move or need further assistance in securing a down payment for your new home? Sibcy Solutions offers innovative selling options that allow you to remain in your current home until you find a new one. For buyers, we can accelerate getting you into a home by making you a cash buyer. Your real estate agent or Sibcy Cline Loan Originator can review with you based on your unique situation.