We’re living through one of the most unique real estate markets in our history, and due to a multitude of forces, this is an interesting time to sell a home. There are real estate agents and loan officers who have been in the business for decades who have never seen a market like this. This shows how unique this set of circumstances is.
Inventory is historically low, interest rates are also low, and we’re coming out of the pandemic, an event that shifted many things. As a result, many people are making the decision to sell their homes in one of the most challenging markets in history.
If you’re a seller, this market will be unlike anything you’ve experienced before and you have to be prepared for it. This market presents both massive opportunities and big hurdles, and you have to be clear on what you’re getting into. If you’re a homeowner looking to take advantage of this market, what do you need to be aware of?
The Chance to Multiply Your Return on Investment (ROI)
When the inventory is low, sellers are actually at a huge advantage. At the moment, people who put their homes on the market can expect multiple offers, and even bidding wars as buyers compete for a very limited item. This means most homes are selling for way over asking price, and sellers have been able to pocket a lot more money. If you’re considering selling your home and you want to earn more money, this would be a perfect time to put your home on the market and earn enough to buy your new home and even have some cash left over.
You would be able to position yourself for a really great financial future by taking advantage of this market. Some homeowners have used the money they’ve made from a home sale to not only buy a new home, but to also buy an investment property that produces income for years to come.
You Don’t Have to Sell Your Home to Win in This Market
Selling your home isn’t the only way to take advantage of a low-interest real estate market. You don’t even have to sell or move out to position yourself well during this time. If you have equity in your home, you can benefit from one of the greatest advantages of owning a home. Did you know that you can borrow money against the equity that you’ve built up in your home, and access some cash to improve your life.
According to All Reverse Mortgage (https://reverse.mortgage/), “This type of loan allows borrowers to access a portion of their equity — tax-free — without having to make monthly mortgage payments.” This is a great opportunity to get a benefit out of this market without actually selling your home, and you can access the money to invest or improve your home.
The Challenge After Selling Your Home
While selling your home right now makes a lot of financial sense, you’re going to run into one big obstacle – finding and buying your next home. Since the market has such low inventory, you’re going to end up struggling to find a home, and perhaps even get caught in a bidding war with other sellers. The last thing you want is to put your home on the market and then have nowhere to go, so make this a consideration before you even begin the process of listing.
The good news is, there are ways you can work around this issue.
- You can agree with the buyer of your home to only move out when you’ve found your new home. If you talk to your real estate agent, this can be made a stipulation of the agreement. That way, you can wait out the market, and then buy your next home when there’s more inventory on the market.
- The other option is to arrange temporary accommodation while you wait out the market. Since most homes are selling for a lot more than asking price, you will walk away from your home sale with extra cash. You can use this extra cash to do a short-term rental while you wait to find your permanent home.
Many sellers have resorted to a 6-month rental that allows them to look for a home without the pressure of making an immediate decision. You can put your things in storage, move into something for now, and then find your next home without any added pressure.
This is a challenging market, but if you know how to navigate it, you can set yourself up for a better financial future. Do your research, talk to a professional and make sure you’re making a smart choice.