Weighing the pros and cons of selling your home in this market should be a no-brainer. Even if you have to buy a home because of selling, the incentives to sell are too good to pass up.
According to a 2022 Home Buyer Report, close to 89% of current homeowners does not want to list their homes in the current market. It is a challenge to find your dream home in this market. Reasons include Buyer’s concerns about finding a new house and paying too much for a new house.
Competition over the small inventory is driving the prices up. It is not unusual to have multiple offers on a home. The good news is a seller will get more money in their pocket for their current home.
Remember there are buyers everywhere who are bidding on the same listing. In 2019 it was reported that 1.3 million homes were on the market, now inventory is down 57%! The pandemic caused a lot of inventory shortages. Today, homes sell within days, not weeks or months. According to NerdWallet, 26 million Americans plan to purchase a home in 2022.
Now is the time to sell and get a big profit. High demand in the face of low supply has made for record-high prices. This means you’re more likely to pay off your current mortgage and walk away with a profit than you would’ve been just a few years ago. Homes are selling at or above the asking price 29% paid more than the list price.
The typical sales price whet from an average of $270,000 in 2019 to $344,000 in 2021. The National Association of Realtors reported that the average rose even higher in some areas of the country. Around 74% of sellers did not reduce their asking price in 2021, in 2019 60% didn’t and in 2011 only 39% didn’t reduce the price.
Homes are moving quickly as reported by the National Association of Realtors. They reported that the typical time on the market is around one week. This is down from around a month in 2019 and 11 weeks in 2012. Sellers are not having to wheel and deal as much with buyers.
You are not seeing as many warranties offered or money for repairs. In fact, three-fourths of sellers did not even offer any incentives to entice buyers. The National Association of Realtors said only 13% offered a home warranty in 2021 which was down from 23%. Sellers assisting with closing costs fell from 20% to 9%.
If you are still on the fence about selling because you do not want to turn around and become a buyer, here are a couple of questions to consider.
Are you willing and able to move somewhere more affordable?
If you answer yes, then you should look for a less competitive market because your money will go further. If you are willing to move to a rural setting, you might not have as much competition.
Are you ‘over’ homeownership?
If your answer is yes, then renting is a good option. Owning a home is not for everyone as it can be expensive and a financial stress factor. According to NerdWallet 2022 Home Buyer Report, 1 in 5 homeowners feel home repairs and maintenance are some of their top financial stressors.
Are you highly motivated?
If your answer is yes, then you will have what it takes to become a buyer in this competitive market. You can endure the frustrations of having to take a good bit of time to find your home and will more than likely have to make several offers on several homes before you go into escrow.
Selling a home in the current market is easier, however, you still would be wise to work with a Realtor. A Realtor can help you navigate the market.