Tackling Sellers’ Concerns About the Market

The housing market is moving right along—the main headwind is the lack of inventory. Yes, buyers would love more inventory, but sellers also have concerns and challenges to face, some of which are causing them to keep their homes off the market.

The first concern sellers have is that they’re unsure that they’ll get top dollar for their home. In today’s market, bidding wars are more common than ever before. The thing to remember is that no matter the product, whenever there’s a bidding war, the price of that product escalates. Right now, home prices are rising, so it’s a good time to get top dollar.

Homeowners are also nervous that they’re not going to get any offers for their homes without doing major upgrades to them. Well, since inventory is so low, many buyers are taking on more of these projects themselves in order to make sure that they get the home they want. Now, if there are certain necessary items that need to be done to sell the home in the first place, do them, but you don’t need to take on major projects in this market.

“With low inventory and low interest rates, leverage is the key.”

Other sellers are worried that the time to close would take too long. The National Association of Realtors says that right now, the time it takes to find buyers and the time it takes to move through a transaction is faster than ever.

Finally, many homeowners are concerned they won’t be able to secure a new home before selling their current one. That’s a valid concern, given how low inventory is. However, there are plenty of interested buyers in the market. 

With low inventory and low interest rates, leverage is the key. We’re seeing many buyers working together with sellers, offering things like leaseback programs to give the seller enough time to find a new home. Another idea is to do a bridge loan, which will allow you to take some funds from your current home to use to buy your next house.

If you have any questions about the concerns that I’ve addressed today or anything else to do with the real estate market, don’t hesitate to reach out to me. I’d love to hear from you.