Why You Shouldn’t Be Afraid to Sell in Today’s Low Inventory Market
It is no secret these days that homebuyer demand is higher than ever before. A change in needs of a home, an increased desire in spending time outdoors, and record-low mortgage rates have all caused a major spike in demand that have caused homes to sell just as fast as they were put on the market! Due to low inventory levels of homes for sale, homes that do go on the market are worth more and face far less competition. Selling your home now means getting the most money for your home and the easiest transaction. Like many others, you want to sell your home and take advantage of the current market conditions, but you have reservations:
● If my home sells quickly, will I have time to find a new home to buy?
● Where will I find a new home to buy with such low inventory?
We are here to tell you that you should not be afraid to sell in today’s market, simply because the benefits outweigh the concerns, and more importantly… you have more options than you think to ensure you have time to find a new home you love before your home officially sells.
First, let’s talk about the benefits.
1. Higher Prices
With so many more buyers in the market than homes available for sale, bidding wars, a situation in which two or more parties repeatedly outbid each other as they compete to purchase something, are extremely common. Not to mention, the average amount of offers on a home is 4.7, meaning regardless, you will be receiving lots of offers that will all try to stand out. This buyer competition drives home prices up. This can work to your advantage, potentially netting you more for your house when you close the deal.
2. Greater Return on your Investment
Rising prices mean homes are also gaining value, which drives an increase in the equity you have in your home. In Minnesota specifically, the average homeowner has gained $21,000 of home equity in the past year! This major growth in equity gives you the ability to use that money for a down payment on your next home or to keep it as extra savings.
3. Better Terms
When you are selling your home in a low inventory market, there are many more people interested in your house. That means they are much more willing to compromise on details of the transaction than they would be at any other time. As a seller, this gives you the power to sell on your own terms! Oftentimes, buyers are willing to offer more money, waive contingencies or inspections, and any other finer details that could make them the front runner to buy your home. This means your transaction will likely be easier than it would be in any other type of market.