Current property market conditions may give homeowners a rare opportunity to upgrade profitably, judging by the latest data from the National Association of Realtors (NAR).
Figures show the nation has insufficient properties on the market to meet buyer demand; and that’s awesome news if you’re considering selling.
The NAR says that sales of pre-owned homes dropped 3.3% in June compared with May.
On 12-month figures, sales volumes are down an incredible 18.9%, compared with June, 2022.
America is currently going through the slowest pace of home sales since the GFC back in 2008-09.
Some 1.08 million homes were on the market at the beginning of July, which is down 13.6% on the corresponding period last year.
For context, America enjoys a balanced market with a six-month supply of properties based on sales volumes. These figures suggest there’s marginally more than a three-month supply, according to NAR.
Consequently, the median price of an existing home is $410,200, the second-highest level recorded.
This list may help you benefit from today’s market conditions if you are planning to sell.
Keep it real
Don’t lose sight of your home’s value. While you are in a strong negotiating position, today’s buyers are well-informed and won’t be making any silly decisions with mortgage costs so high.
Be competitive
Ask your agent for neighborhood sales data for homes similar to yours. This will guide you to a realistic price. You’ll attract more potential buyers, and multiple offers should drive up the final sale price.
Be meticulous
Preparation is the key to maximizing the value of your home. Clean and declutter and carry out any repairs to avoid an awkward negotiation where the buyer will seek a discount to get problems fixed.
Negotiate
Your agent should be a negotiation powerhouse. They’ll know how best to leverage your strong position given the property shortage and how to strike a deal with super-keen buyers.
Be flexible
If you want to close quickly, don’t let small details get in the way. Be flexible on issues such as moving dates.
Contingency conundrum
You may like the price but watch for the contingencies your buyer may try to insist on. Standard ones include having the property pass a building inspection and confirming that pre-approved finance is approved by their lender. But be dubious about anything unexpected.
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.