Time to Sell Your Less Than Ideal Home!

Housing Market Poised to “Spring Forward” This Year

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the real estate market right now is what is holding back the market. We’ve seen over the past 18 months that there’s never been a time of such strong demand for Buyers to purchase a home throughout the country.

Tension in a real estate market doesn’t last forever.

Investors know this and Builders know this as well. That’s why last year so many residential new construction permits were issued to Builders. And they’ve been busy. There wasn’t a neighborhood around that didn’t have the sounds of hammers and saws buzzing throughout the winter. Think back, and you’ll realize that not only were cranes dotting the skyline in major metropolitan cities throughout the country, but in residential neighborhoods there’s been a bustle of activity. We expect to see significantly more new construction coming on the market later this spring and summer. The new construction inventory will start to relieve the pent up pressure in the marketplace by providing Buyers some much needed homes.

What does that mean for residential Sellers?

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right. Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions. Even here in western Washington, in the past we’ve see a dropoff during the winter months and holidays because people have other obligations that time of year.

That hasn’t happened this year.

Demand for housing has remained strong as mortgage rates have remained near historic lows. Buyers have remained consistent and active throughout the fall and winter. We continue to see multiple offers on good listings and Buyers missing out on the home they want. The low interest rates have helped to spur the activity, but there’s also an understanding among buyers that “this too shall pass” and they don’t want to miss out on an opportunity to buy their first home or trade up to a bigger home for their growing family.

Thankfully residential Sellers have reaped the rewards of a strong, focused, and committed Buyer’s community in many parts of the country, such as the Greater Seattle are where I live and other metropolitan areas such as Los Angeles, Austin and Atlanta. A great home, recently remodeled, listed as vacant and staged, and priced just under market value will typically receive multiple offers right now. That’s wonderful for those Sellers, and not surprising. Selling a home that’s been updated, is vacant and staged, and priced under market value is always your winning recipe to sell for top dollar in any market.

What about the homes that aren’t ideal and move in ready?

Let’s just call these homes “special.” Perhaps they’re more than 30 years old and have never been updated. Formica counters that were all the rage when it was new just doesn’t float anybody’s boat today. Perhaps the cement patio is cracked and the yard has become overgrown as life has taken on other priorities besides cultivating a showcase garden. Perhaps the home’s location near a busy road or a commercial district has always been a nuisance and a hindrance to selling.

All of these issues could absolutely lead to an unsuccessful attempt at selling the home just 5 years ago. Buyers at all price points want easy, simple. They want move in ready. That’s always the first choice for the Buying community.

But, when the very real pressure of rising interest rates and fast rising home prices puts a tourniquet around a Buyer’s ability to purchase, then priorities shift. Buyers will value future reward more than short term pain. They want to make sure they can get into a home now and begin reaping the financial benefits of home ownership right away, and are afraid they won’t be able to afford to buy just a couple years from now. That means those less than ideal homes actually have a chance at selling. Buyers are willing to take on the home improvement projects. Will a seller receive more money if they remodel and stage a home to sell? Sure, but not everyone is in the financial position to be able to do something like that. So, with willing and able Buyers, 2016 can be the year for people to sell their less than ideal home.

But everyone knows that Spring and Summer are the best times to sell.

Don’t let folklore and myths impact your success when selling your home. Take a look at the data to learn the truth. The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2015 all fell in April, May or June. What may have worked in the past doesn’t apply to the present. Since we’ve had such a strong year for selling homes, with minimal slowdown, a Seller’s BEST TIME to sell is right now. Buyer interest is at its peak from the long winter and interest rates are still at historic lows. As we move later into the year, we’ll definitely see more inventory coming on the market, but more competition from other residential Sellers and from new construction doesn’t improve a Seller’s chance in selling for top dollar.

Those who act quickly and list now could benefit greatly from additional exposure to Buyers prior to a flood of more competition coming to market in the next few months.

BOTTOM LINE

If you are planning on selling your home in 2016, this is the BEST time to get your home on the market. Buyers are waiting to see the new spring inventory and if you beat your competitors to the punch, you stand a great chance of getting a lot of exposure to ready Buyers without much competition in the marketplace.  So go for it!  Get your home out there and on the market.