We're starting off 2021 with historically low mortgage rates, which are fueling a surge in buyer demand. That, combined with limited housing inventory, is giving sellers a real upper hand in today's market.
As of late November, housing inventory stood at a 2.3-month supply — and that's an all-time low. Normally, it takes around a five-month supply of inventory to even out the housing market so that neither buyers nor sellers have a particular upper hand. The fact that inventory is so low means buyers will need to outbid one another to get their offers accepted, and as a seller, that's one area where you stand to gain.
Home values are also much higher now than they were a year ago, which means if you list your property soon, you could get a robust offer even if your home doesn't end up in a bidding war.
National home prices increased 7.3% year over year in October 2020, according to the latest CoreLogic Home Price Index (HPI®) Report. The October 2020 HPI gain was up from the October 2019 gain of 3.5% and was the highest year-over-year gain since April 2014.Dec. 1, 2020 (Maurie Backman -The Ascent)
So, what does the title to our article mean?
Like the article states, the Lake Country is seeing prices escalating at a very rapid pace. Many homes are seeing offers at full price or above.
So why the disappointment? The seller is elated when the agent brings an acceptable offer. All is going well, and the seller is informed that the buyer will be having an inspection. Most buyers will and should have the home they are buying inspected.
The inspectors today are doing a thorough inspection. They are obligated to find defects and major problems.
This is where disappointment hits the seller. The buyer will most likely start negotiating again to cover the cost of the defects or repairs. We have always believed that in most cases we sell a home twice; the first time to agree on a selling price and the second time negotiating to meet most if not all the repairs needed.
We cannot express enough to our readers that when you have decided to put your home on the market, have the home in tip-top condition. If you decide to have your home inspected before you list it, remember that what they find will always have to be disclosed. But, again, you would want to have your repairs taken care of even if you decide not to sell.
What a disappointment when you are offered the price you were expecting and have to start negotiating again.
Thought for the Day: Don’t let anyone dull your sparkle!