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Four incentives to sell this summer….what are they?!
1. Your House will likely sell quickly
I think that many folks have forgotten what it was like to sit on the market for a long time. And we’re talking a month, two months, six months, and it was not uncommon, for a seven year span, at least in my market here in Grand Rapids, Michigan, for homes to sit on the market for up to a year or more. And now things have completely flipped. We’re on the other side of the spectrum, from sellers market to buyers market. As that pendulum swung, it swung hard and fast, and now it’s hanging up here on this side and it hasn’t begun to move yet. A little bit, but not much.
So homes sell quickly. And a lot of times folks think that’s a bad thing. Well, there’s no good or bad. It just is. So remember that a home selling quickly is a good thing for the bottom line, for your bottom line as a seller. The reason is because there’s always an inverse relationship to days on the market and final sales price, translated to the longer your home sits on the market, the less money you get. So it actually runs counter to notions of if I stay on the market longer, I will attract more buyers. That has never been the truth. The numbers don’t support it, and it just is not the case.
And the reason why is because the longer you’re on the market, the more people begin to think there’s something wrong with your home. So you sit on there for three months, you’re going to get less money each and every time. So it is a good idea to get out there and sell it quickly because there’s an influx of buyers. All eyes are on you. You’re the new kid on the block. You get the most action, the most activity, the most showings, and your sales price will be up here instead of here. Okay?
2. Buyers are willing to compete for your home
The frequency of buyers that are willing to pay over the perceived market value is continuing to increase. And so this summer is that perfect combination of selling quickly, plus getting buyers in a multiple offer situation. The bidding process is the magic behind that. You get that price just right, and buyers will notice the property because they find it online, and if marketed properly, more eyeballs will turn and look at your property. And then ideally, we get more than one person interested in the same time at your property, and they’re going to fall in love with it, and they’re going to want it. And it’s not uncommon for us to have five to 10, and sometimes 30 offers, for our sellers’ listings.
3. When supply is love, your house is in the spotlight
Now, this is so different than when the market’s an extreme buyer’s market, where there’s so many homes available for buyers to choose from because supply is high, demand is low. So this summer we have that low inventory environment. Now, don’t worry, I’m going to share with you how you can still win through this. But just recognizing that supply is low, demand is going to be high. That helps you get more money and sell your home in a shorter amount of time.
4. If you’re thinking about moving up, this might be the best time to do that
The reason, because over the last 12 months, homeowners have gained a significant amount of wealth in their home, in your home. And that’s in the form of equity, of course. So we have that, plus we have unprecedented amount of time that we’re spending in the home. And so, so many homeowners have found that the home that they’re living in is not suitable for their needs. And they didn’t recognize that before because they weren’t spending that much time in the home. And now they are.
The interest rates are extremely and historically low. The experts are all pointing to the fact that they could and likely will increase. Now, they're historically low, super low, hovering below the point of like, it's almost free money.
So if you’re a seller who has always wanted to sell, and you do want to sell your home quickly, and you want to get more buyers interested at the same time, and you recognize that supply is low, therefore demand is high, and you’re thinking about moving up, but you don’t know how to put all this together, there’s one like 0.5 to this whole thing, as well. The interest rates are extremely and historically low. The experts are all pointing to the fact that they could and likely will increase. Now, they’re historically low, super low, hovering below the point of like, it’s almost free money.
And so realize that all these factors are in place here. You might find yourself saying then, well, that’s great, Kevin, or anybody else that’s sharing this. But what do I do about finding that next property? So let me share with you one concept here before I bring this video in for a landing. You’re here, and the home you’re buying is here. Sell high, buy high, right? So you might ask yourself, well, what’s the advantage in that? What’s the advantage of that? I’ll get to that in a second.
Let’s look at the opposite of this. Market drops, the home you’re buying drops in value. You’re operating within the same vessel, if you will. Selling high, buying high, you’re moving money around from home A to home B. So your home value drops, so does the home value you’re buying. So have you gained anything here? It’s the same money, less … You’re selling your home here with less equity having built up in your property. So you have less of a down payment for the next home.
Here, you’re selling high, in home A, you’re capturing a lot of equity, thereby putting down a big down payment over here in home B. The ace factor, the ace in the hole, the x-factor, I should say, is that the interest rates are super low. When this happens, the home values are dropped. It’s a buyer’s market. And the home you’re buying is a lower price home, as well. But the interest rates, those are typically not as low as they are right now. In fact, I don’t think they’ve ever been as low as they are today.
And so when that market drops, typically the interest rates are higher than they are today. So that’s the factor you should keep in mind. If you want to sell, identify the fact that you do want to sell. And what are the benefits of that? It’s the home you live in. Should you settle? Probably not. Can you find the next home? If you hire the right agent. Here at Yoder Real Estate, we have a list of off-market listings. We are matching sellers up with buyers and buyers up with sellers the good old fashioned way. Why? Because we know it’s important. That’s what the market requires.
How? We go out there and hustle every single day, and we’re finding properties for our clients, we’re knocking doors, we’re making phone calls. You may have gotten one from us. Whatever it takes, social media, like this, and getting the word out. We have a list of homes. It’s called Kevin’s List. We couldn’t think of anything else to call it. That we’re matching up homes that are available with buyers that are looking, and it’s working, folks.
So if you want to find a way to navigate through this market and shift from home A to home B, and you want a solution, give us a call at Yoder Real Estate. We are here to help you. Hopefully this has served you today. And make it a great summer. Get a hold of us if you’d like to know more, and find us online at yoderrealestate.com.
If this video was helpful, please stay subscribed because we’re going to be doing more and more of this type of video this year as sellers are asking these types of questions, and you deserve to know the truth about how this works. Secondly, if you really enjoyed this and you know of someone else that would find value in it, please share it with your friends and family because this question is going to come up often this year, and we’ll continue to do this more and more.
If you have any questions or would like any real estate advice whatsoever, please don’t hesitate to reach out to us by phone or email. I’ll talk to you soon!