No Comments

Three Ways Low Inventory Is a Win for Sellers

Three Ways Low Inventory Is a Win for Sellers

Three Ways Low Inventory Is a Win for Sellers | MyKCM

The number of houses for sale today is significantly lower than the high buyer activity in the current housing market. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

“There is no shortage of hopeful, potential buyers, but inventory is historically low.”

When the demand for homes is higher than what’s available for sale, it’s a great time for homeowners to sell their house. Here are three ways low inventory can help you win if you’re ready to make a move this fall.

1. Higher Prices

With so many more buyers in the market than homes available for sale, homebuyers are frequently entering into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this can definitely work to your advantage, potentially netting you more for your house when you close the deal.

2. Greater Return on Your Investment

Rising prices mean homes are also gaining value, which drives an increase in the equity you have in your home. In the latest Homeowner Equity Insights ReportCoreLogic explains:

“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.”

This year-over-year growth in equity gives you the ability to put that money toward a down payment on your next home or to keep it as extra savings.

3. Better Terms

When we’re in a sellers’ market like we are today, you’re in the driver’s seat if you sell your house. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally move into their dream home.

So, is low housing inventory a big deal?

Yes, especially if you want to sell your house at the perfect time. Today’s market gives sellers immense negotiating power. However, it won’t last forever, especially as more sellers return to the housing market next year. If you’re considering selling your house, the best time to do so is now.

Bottom Line

If you’re interested in taking advantage of the current sellers’ market, let’s connect today to determine your best move in our local market.

No Comments

Avoid These Common Pitfalls When Selling Your Home

pitfalls of selling your home

Selling a home can be emotionally challenging and surprisingly time-consuming, especially if you’ve never done it before. Unless they are experienced, it’s easy for sellers to make lots of mistakes when dealing with such a complex transaction. Here are some common missteps to avoid when placing your home on the market.

Not Hiring a Real Estate Agent

Some people think they can save money by selling their homes without help. Unfortunately, this usually isn’t the case. According to recent surveys, less than 10% of FSBO (for-sale-by-owner) homes actually sell. That means nine out of ten homeowners are unable to sell their properties when they go it alone. 

There are a lot of reasons why FSBOs fail, including: 

  • FSBOs don’t typically know how to handle showings
  • FSBOs aren’t sure how to negotiate purchase offers
  • FSBOs don’t have experience negotiating home inspection findings
  • FSBOs aren’t sure how to leverage the best marketing strategies
  • FSBOs don’t always properly price their homes for sale

In addition to helping sellers navigate the confusing process of selling a home, experienced agents know how to pique interest in prospective buyers. This streamlines the entire process and increases the chances that a seller will be happy with the final sales price. 

Overvaluing Their Homes

Every home seller wants to get optimal value for their properties. Far too often, however, they let their emotions cloud their judgment. The most important factor that should determine your asking price is what comparable homes in your area have sold for. Secondary factors include market strength, local demand, location, and the home’s condition; but these are less important than the comparative price of similar inventory in your area. 

When homeowners overprice their homes, they tend to receive a lot of discouraging lowball offers. On the other hand, they will usually get more competitive offers when they price their homes appropriately in relation to their local markets. 

Hiding Key Flaws

Think buyers will overlook that musty smell of leaky roof? Think again. If they have a savvy agent, you can expect buyers to get a professional home inspection after you accept their offer. If the inspector uncovers a major problem, it could delay your closing date or torpedo the deal.pitfalls of selling your home 2

It’s important to take care of repairs if you are aware of them, or you could leave yourself open to a lawsuit down the road. You may also want to consider paying for a home inspection before you list your property to make sure it’s in great condition for prospective buyers.

Not Leaving Showings to Your Agent

When homeowners stick around for showings, it can make buyers feel awkward. People want to be able to imagine themselves living in a home without having the current owners breathe down their necks. Although it may feel difficult, it’s best to let your agent handle all showings.

You should also take your agent’s advice about preparing your home for showings. This will usually mean decluttering and repositioning furniture to accentuate certain aspects of a home. It may also mean depersonalizing the property to make it easier for buyers to envision it as a home for their family. 

Entering the Market Blindly

Before selling your home, you need to carefully examine your real estate market. Unless you are familiar with the local housing market and relevant statistics, it’s generally best to work with an agent. An experienced professional will know how to price a home and make it stand out among similar inventory. He or she will also be able to help you choose the best time to list your home to maximize interest and ensure a higher asking price. This is especially important, since listing at the wrong time of year can cause a home to languish on the market. 

Things to Consider

There are a ton of common home-selling mistakes that can cost homeowners thousands of dollars. It’s important to remember that selling a home is a business transaction and try to eliminate emotions when making decisions. It’s also important to work with a reputable real estate agent who can guide you through every step of the complex selling process.

If you’re thinking of selling your existing home, contact The Wheaton Team. Over the past ten years, we’ve earned a widespread reputation for specializing in residential real estate in Colorado Springs and all of El Paso County.