The latest real estate market figures reveal that, comparing the number of active listings to the average monthly sales volume over the last 6 months calculates to less than 1 month's inventory on the market - an extremely low level that creates creates enormous pressure in the market. So while we've seen Seller's Markets before, experts agree, what we have this year is unprecedented. Homeowners who've been sitting on that unoccupied family or second home may find it very lucrative to let go of that burden now. And buyers who want to take advantage of lower interest rates need to be prepared to make a qualified offer quickly. Here are some tips to help both sellers and buyers have a smooth and positive transaction!
Best Advice for Sellers
Anticipate a quick sale: In a seller's market, your home could sell quickly - very quickly - so have a strategy on where you might temporarily or permanently relocate before putting your home on the market.
Be realistic about the costs of selling: When you account for closing costs, repairs, and other concessions to the buyer, the costs of selling can be 6% to 10% of the sale price. I can help you determine your closing cost quickly, setting you on your way to a hassle-free transaction.
Set an realistic price: While we are in a seller's market, it is always wise to consult your real estate agent for Fair Market Value, which refers to how a home is valued when both the buyer and seller are reasonably knowledgeable about the property and neither is under any pressure to buy or sell.
Considering more than the highest offer: It’s common in many traditional sales to have contingencies - conditions that must be satisfied for the sale to close, which can impact the timeline of the sale, the certainty of the sale, and the complexity. For example, you may receive a really high offer that is contingent on the buyer selling their existing house.
Address major repairs and renovations: Maintenance issues can turn buyers off and may even decrease the value of your home. Consider prioritizing the most glaring issues, particularly those that are likely to turn up during a home inspection—many buyers will require an inspection before closing. Most homeowners are too accustomed to their home's idiosyncrasies, so I will help you prioritize repairs and upgrades to ensure you receive the best offers.
Prepare your home for sale: The cleaner, less cluttered, and more neutrally, well-decorated your home, the more appeal it has. Are your home furnishings up to par? Staged homes sell 88% faster and for 20% more than those that aren’t staged, according to Realtor.com. Is your yard professionally landscaped? You only have one chance to make a first impression!
Anxiety about having strangers into your home: Once you’ve put your home on the market, you’ll have to try to cooperate when your agent wants to show it. If your house isn’t easy to show, it won’t be easy to sell. Be sure to talk with your agent about your family's ability to make the house available and any times that just won't work. We will always try to honor your requests.
Considering your broader financial situation: Before you make the decision to sell, it may be helpful to assess your income, debt, and any upcoming expenses during your move. Consider contacting your bank or a mortgage advisor to understand exactly how much you owe on your current home. This, along with your target sale price, and the total cost of selling a home, will give you a general idea of how much money you may walk away with after the sale.
Best Advice for Buyers
Buyers in a seller’s market can get what they want, but they need to bring they need to be smart, flexible, and ready to jump at the right property.
Make your best offer first: Everyone wants a bargain, or at least a fair price, and offering lower than asking price is a reasonable strategy when a house is overpriced or there is a housing glut. But trying to get a deal when you’re in a seller’s market might not be the best tactic. Right now I would encourage buyers to come in with a strong opening offer.
Be mentally prepared to buy: Just as impulse buying is risky, over-analyzing is also risky. Once you’ve determined the type of home you want, the location you desire, and your price range, and finally find a home that meets your qualifications, don’t wait to make an offer.
Be ready for (a bidding) war: Right now, chances are high you'll be competing with other buyers, so there is only one strategy to implement - set your search below your max budget to leave room in case of a bidding war
Put your finances in order: Be prepared to move quickly by having your finances in order, to get a preapproval. Know your budget, clean up your credit score, and consider liquidating some assets for a higher down payment and delaying high-ticket purchases for 3-6 months before shopping for your home.
Get preapproved for a loan: The only way to prove to the seller that you’re a qualified buyer is to be prequalified from a lender. Prequalification means that you simply told your lender your financial story. Preapproval involves submitting a mortgage application, complete with providing verifying documents. Not getting prequalified sends a message to the seller that the buyer will lag on getting their ducks in order and aren’t taking their house hunting seriously.
It cannot be overstated the importance of choosing a real estate agent who understands your needs, can offer sound advice, and take you through your transaction with patience, grace and wisdom. I’d love to hear from you. Tracy Curtis, Coldwell Banker Realty, 415-910-0599.
#tracycurtis #marinrealestate #coldwellbankerrealty #home #marincounty