(NerdWallet) – Although it is known to be a difficult time to buy a house, the incentives to sell where you are may be too good not to miss them.
The majority (89%) of current homeowners who want to make a list of their homes say something is stopping them from doing so, according to NerdWallet, a recently published 2022 Home Buyer Report. Checkpoints are most often cited: fears about finding a new home and paying too much for a new home.
It is true that finding a home and especially finding a home that meets all your needs is now a challenge. Competition for several homes in the market contributes to rising prices. It accepts many suggestions and sometimes hot tips around the house not yet on the list to close a deal. However, the current owners have an advantage. By getting the most out of the market on the seller’s side, they will side with the buyer with more money to fuel their purchasing power.
Buyers want your home
Stocks are so small that probably a few buyers are looking for a home similar to yours.
In 2019, there were an average of 1.3 million homes on the market each month. By 2021, the number of active listings has fallen by 57%, to an average of 540,000, according to an analysis by NerdWallet data from Realtor.com. Before the pandemic, housing was scarce, but COVID-19 exacerbated the situation. Now homes are sold in days, not weeks or months, and are gaining a lot of competitive offerings. This demand shows several signs of withdrawal.
Nearly 26 million Americans say they plan to buy a home this year, according to the Home Buyer Report. This figure is unrealistic – usually between 5 million and 6 million homes are sold each year – but this suggests that the flow of buyers is unlikely to decline.
Selling now can mean more profit
High demand amid low supply has led to record high prices. This means you are more likely to pay off your current mortgage and walk away with a profit than it would have been just a few years ago.
Homes are also sold at higher prices and sold at the asking price or higher. In fact, buyers usually paid 100% of the list price in 2021, and 29% paid more than the list price. Even though the sale price represents your ultimate financial benefit, getting offers more than what you expect brings the deal extra excitement.
According to the National Association of Realtors, typical selling prices rose from $ 270,000 on average in 2019, before the pandemic, to $ 344,000 in 2021. And in some places they have grown even more.
According to a NerdWallet analysis, about three-quarters (74%) of sellers did not have to reduce the asking price in 2021 at all, compared to 60% in 2019 and 39% ten years ago in 2011. The analysis covered data for 10 years from NAR’s annual “Buyer and Seller Profile” report.
Closing day may come sooner, with fewer casualties
Buying or selling a home is never an easy deal, but selling is now much easier than in recent years. Not only will you have a few competitive offers, but also a better chance of closing with fewer disappointments.
The houses are moving quickly
In 2021, homes were typically on the market one week compared to 3 weeks in 2019 and 11 weeks in 2012 and 2013, according to our analysis of NAR data.
Sellers have to give up less
In the process of closing the sellers are relatively often and transactions – for example, offering the buyer a guarantee or money for repairs. But these benefits have become less common.
According to our analysis of NAR data, nearly three-quarters of sellers did not offer any incentives to attract buyers in 2021, compared to about 60% 10 years ago. During the same period, the share of those who offer a housing guarantee decreased from 23% to 13%, and the share of sellers who help with the cost of closing, decreased from 20% to 9%.
You will most likely leave satisfied
Closing a home sale can leave you with lessons learned if you don’t regret it. But in this market it is less likely. Seven out of 10 (70%) sellers left the housing sale process “very satisfied” in 2021. Ten years ago, according to the NAR, only 54% could say the same.
So you have to list?
If you are thinking of selling but do not want to join a competitive group of buyers, consider the following questions:
Do you want and can move somewhere more affordable?
If so, the profits from your sales will go further in a less competitive market. Not everyone wants to move to the countryside (like me), but your offers will be more attractive to sellers in areas where demand is not so great. You will be able to make a larger down payment and possibly shorten the term of your new mortgage, and both will save you a lot in the long run.
Have you “finished” home ownership?
If so, it’s perfectly normal to go back to renting or moving in with someone else who has a paperwork or mortgage. Owning a home is not for everyone, and it doesn’t have to be forever. In addition, home ownership can be costly – one in five homeowners says home renovations and maintenance are some of the major financial stressors for the next two years, according to the NerdWallet 2022 Home Buyer Buyer Report.
Are you highly motivated?
If so, chances are you’ll get what it takes to become a buyer in today’s marketplace. Finding a home that you like will take time, and you may have to make offers for multiple homes before entering into a contract. By being persistent and knowing what challenges await you, you will be able to better prepare yourself for a potential battle.