Buying and selling a home is a big decision. Most people only buy and sell up to 3 houses in their lifetime, and most of the time, it is the most expensive decision they will ever make. No pressure at all!
The real estate industry has been one unique market for over 40 years, from pandemics and lumber shortages to mass layoffs and bidding wars. Such a market makes selling a home an even bigger decision, with sellers facing unique challenges.
The flood of so-called professionals
Every home seller's situation is unique, and there is no one size fits all answer. So don’t settle for someone who tells you there is. In a hot market like this, the number of real estate professionals, investors, and agents alike, skyrockets. This leads to a record number of professionals trying to gain the business of just a few. While this may seem like an advantage for the seller, what truly happens is the market is flooded with so-called professionals (with little knowledge or experience!) who overpromise just to fight for your business. Too often, homeowners are misled and lose precious time and thousands of dollars, causing large amounts of needless stress. So, you must find a trusted professional with a proven track record of helping others in your situation.
Rising interest rates
If we learned anything from 2020, it was that anything could happen and we must be prepared. While I don’t have a crystal ball, here are some pretty solid fundamentals. Interest rates will rise. The announcement has already been made, that the Fed will raise interest rates. Exactly when and by how much is the only question that remains. As mentioned before, interest rates have a strong inverse relationship to housing prices. As interest rates go up, housing prices come down. This will play an important role for those counting on future appreciation. Those waiting to sell for continued appreciation may be drastically disappointed if they wait to sell and housing prices eventually decline.
Looming foreclosures
Another large buzz on the street is looming foreclosures. While inventory is at an all-time low now, there are nearly 2 million homeowners in a forbearance program currently. If even a small percentage of them decide to sell, it can flood the market with much-needed inventory. This rise in inventory is yet another factor that could contribute to the plateau or decline in home sale prices in the near future. These forbearance programs that allowed homeowners to pause payments on their mortgages will start to fade out as early as the end of September 2021. While I cover the details of forbearance programs in another article, you can be sure many homeowners will be selling their homes as these programs fade out.
Selling in a pandemic
If all of this wasn’t enough for would-be sellers to contemplate, we have the added concerns of selling in a pandemic. As we approach the typical fall/winter season, runny noses, coughs, and fevers are surely in our future. With concerns about COVID-19 and variants, coupled with confusion and divide driven by the media, many are left to wonder; Is it even safe to sell today? Many homeowners are in situations that make them want to sell but are rightfully concerned about opening their homes to have droves of strangers walking through their homes. Sellers should know there are a variety of solutions to this concern covered here.
Selling a home today is perhaps more challenging of a decision than ever. Every day I talk with potential clients about their individual questions, concerns, fears, and goals. After buying and selling hundreds of homes over the last 10 years, I have found that each sellers’ situation is unique. Each seller deserves to have an experienced professional in their corner to guide them through the complex environment, ensuring all of their concerns are addressed and taken cared of. To decide if now is the right time for you to sell, you must thoughtfully consider your unique situation, along with the facts covered above, to decide the best next steps for you.
Email or call us today to know if now is the right time to sell your home.