The home shortage were experiencing at this moment has had its repercussions. There’s frustrated buyers who, for months have been trying to purchase a home. Hand in hand go the hundreds of real estate agents who have been working with well qualified buyers. It’s disheartening to realize that the buyers market so many waited for, came and went within just 8 to 12 months, and we are now back in a sellers market.
For about 18 months most metropolitan markets were driven by foreclosure sales. The fever to own one was at an all time high and again buyers had to resort to raising the price of their offer and cutting the closing cost concessions in order to stand out and be the accepted offer for the property. Home shortages will do this to real estate markets.
With all its difficulties there is one ray of light directed to the standard seller. The seller trying to sell a home and move up to a larger home or better neighborhood has the opportunity to do so at this time. The inventory of bank owned homes has dwindled. On the other hand, the wave of buyers that jumped into the real estate market has not dwindled. Fueled by credits for first time buyers and move up buyers, sellers can take advantage of the benefits of a sellers market. The shortage has lead buyers, again to overbidding and competing over homes. Demand is high and supply is low. Many looking for a good deal on a home can find one now, if they can get there foot in the door.
The shortage of homes in the last few months has helped increase the value of homes. Depending on the area, we are seeing an increase of about five to ten percent. Great for home sellers not so good for the buyers! Selling at this time can bring the seller many offers to choose from and the luxury of accepting the offer that costs the seller the least amount of contribution, if any, to make the sale go. Accepting an offer with no closing cost concession for the buyer can save the average seller five to seven thousand dollars. Estimating the seller is negotiation with a buyer asking for an average of three percent in closing cost. This market can help the seller put more money in their pocket rather than have to give it away to entice a buyer to purchase their home rather than another property.
Its common practice for sellers to have to pay more money out when demand is low! Sellers taking advantage of the current market condition will surely save money and invest it on themselves with the next home they buy. One thing to keep in mind is the other side of the coin. If the seller will be moving up and becoming a buyer, the same laws might apply when looking for a replacement home. The consolation being that in most cases move up buyers will take the appreciation on their new home, yielding, again in most cases, greater equity gain. Well worth the trouble and the timing.