by on April 9, 2013
This week, we are going to look at the three reasons to sell your house now instead of waiting: demand is strong, supply is low and new construction will soon be your competition. – The KCM Crew
A seller’s ability to sell their home in today’s real estate market will be determined by both the supply of homes for sale and the demand for that housing. In real estate, supply is represented by the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).
While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:
Based on the table above, we can see that the supply/demand ratio is showing a sellers’ market where prices appreciate. This has created positive movement in housing values in most parts of the country.
Sellers have a great opportunity right now. Historically, inventory increases dramatically as we approach summer. Selling now while demand is high and supply is low may garner you your best price.
Tomorrow, we will look at the competition new construction will create.
Are you ready to discuss marketing exposure and get your home to shine in this season? If so, please contact me and let's get the process started.
Noemi Cardoso
William Raveis Real Estate
508-558-1945
www.DistinctiveHomes-NE.com
This week, we are going to look at the three reasons to sell your house now instead of waiting: demand is strong, supply is low and new construction will soon be your competition. – The KCM Crew
Part II – Housing Supply is Low
While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:
- 1-4 months’ supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
- 5-6 months’ supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
- 7-8 months’ supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.
What is happening across the country right now?
In most parts of the country, supply is dropping like a rock. According to the National Association of Realtors, total housing inventory is below a five months’ supply. This is almost 20% below inventory numbers of just a year ago and at levels we haven’t seen since 2005.Based on the table above, we can see that the supply/demand ratio is showing a sellers’ market where prices appreciate. This has created positive movement in housing values in most parts of the country.
Sellers have a great opportunity right now. Historically, inventory increases dramatically as we approach summer. Selling now while demand is high and supply is low may garner you your best price.
Tomorrow, we will look at the competition new construction will create.
Are you ready to discuss marketing exposure and get your home to shine in this season? If so, please contact me and let's get the process started.
Noemi Cardoso
William Raveis Real Estate
508-558-1945
www.DistinctiveHomes-NE.com
I’ve put together nine tips I think make all the difference for a positive outcome. These are tips I’ve gathered through experience working with both buyers and sellers and from witnessing the processes that make deals happen.
- Hire an awesome real estate agent. You make think this is a
shameless plug for the profession, but I believe your odds of success greatly
increase when working with a pro. Notice I said AWESOME, not just any
agent. When buying a home in seller’s market, you will need to act quickly, be
well educated, and have professionally written offers. An agent who knows the
area and the local agents will help you find a home and advise you on the right
offer.
- Learn the process. Don’t wait until the day you find a home you want
to learn the process of writing an offer and buying a home. It can be a steep
learning curve. Know what you will need to do and how much it will all cost
ahead of time. If you follow step one, your awesome agent should provide a
thorough education.
- Get pre-approved. I don’t want to hear why you haven’t done this
yet. If your agent is nagging you about this, good! The mortgage process is
more elaborate than a few years ago, so get your ducks lined up and marching.
In a multiple offer situation you will likely need to present a pre-approval
letter and not having it ready can make the difference between acceptance and
rejection. Regardless of how strong you know your finances are, the seller will
not know and a pre-approval is the only way to communicate it.
- Prepare for some disappointments. When buying a home in a sellers’
market, it is likely you will have a rejected offer along the way. I met a
couple who gave up on searching for a home when their first offer on the first
property was rejected. This is a mistake. Don’t fall into the emotional
pitfall of turning a disappointment into a defining moment and base decisions on
it. Move on, keep going, expand your horizons and know it was not the right
property for you. But if you continue
to lose to better offers, it’s time to change strategies.
- Start the process early. Want to move in September? Start looking
in March….you should have started weeks earlier. With low inventory and more
competition, the search takes a while. Furthermore, a long closing may be
highly valued by a seller who still needs to buy a new home. Let’s go!
- Find flexibility. Find your strengths as a buyer. Do you have a
great knowledge about construction and plan to fix things? Then don’t be picky
after inspection. Do you have lots of cash? Maybe waive the appraisal
contingency or offer a larger down payment. Are you flexible to move anytime?
Make it known. A flexible closing can make a big difference for some home
sellers who need to move in a particular time frame.
- Know your weak spots. If you have a 3-5% down payment, you may have
a tough time competing against some of the investors paying cash for
properties. The questions is: how to overcome those weaknesses? You can offer
more money, tight mortgage contingency timeline, etc. An offer to purchase real
estate has many elements to it, and you need to know your strengths and
weaknesses, and how to work with them.
- Brush up on your writing skills. A short note goes a long way. I
often advise buying clients to write a personal note addressed to sellers
telling them a bit about themselves and why they like the house. You’d be
amazed how a personal connection means more than a couple thousand dollars in
some situations. And it can make a big difference when two offers are very
similar.
- Ask your agent to present the offer. I admit to overlooking this
detail sometimes, but having a buyer agent present the offer is another great
way to make the connection more personal. It also ensures the sellers receive
your perspective when the offer is presented rather than the listing agent’s
editorial remarks.
Was this helpful? Find more helpful tips to strengthening your negotiation power when buying a home in a seller’s market in my blog.If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.
If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!
We work with one going in mind, YOURS!
Local Office. Local Agents. Local Knowledge.
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com
(*) Ruth Lerner is a Brookline Realtor specializing in Brookline, Mass., Chestnut Hill, Mass., Brighton, Mass. and West Roxbury, Mass. real estate. Since 2002 she’s represented both buyers and sellers with a post-transaction satisfaction rate of 97%. You can contact her on her website, and find her on Google+, Facebook, LinkedIn and Twitter.