This post from Greg Nino offers some simple yet great tips and reminders for sellers in today's "seller's market." Yes, inventory is low in most areas, but it's important to be reasonable in your expectations of those buyers considering your house.
We're in the middle of a Sellers Market. There's no doubt about it. Homes are selling for full-price, many for more than asking price. Seller confidence is swelling and buyers are being forced to pay more for a home today than they did this same time last year.
Today a potential home seller told me over the phone that she was "fully aware" that it was a sellers market and that she wasn't about to replace her 30 year old roof on her 100k house. She said "The buyers can fight over my house and bump up the price... I know my rights!"
Okay, so let's make this simple...
A new roof on this 100k house is going to cost about $8,000.00. The cost of roof's have gone through he roof. No buyer with a VA or FHA loan (typical loan in this price range) is going to pay full price and then get loan approval on a roof that's falling off the roof when a gust of wind blows through. The seller needs to replace their OWN roof with THEIR OWN money. Her assertion that a buyer will pay for it by some how financing it is next to impossible.
Here are some other items you should consider crossing off your expectation list if you're a seller in a seller's market:
1. A seller shouldn't expect the same results as their friend who lives in another neighborhood. All neighborhoods are different. Some are VERY different. Each community is unique with its own builders, location & appeal. Certain price ranges move faster than others. Proximity to major freeways, area attractions and specific school districts can all lower or raise the over all value of a neighborhood.
2. Sellers shouldn't expect buyers to "be able" to roll in major repairs in their loan. FHA, VA and USDA home loans have minimum criteria that a home must meet in order for the loan to be fully approved. Missing stoves, broken windows and obvious wood rot could all halt the loan process for a buyer if the appraiser sees these items during their appraisal valuation. And odds are, he will!
3. Don't get offer proud! Yes it's a sellers market. Inventory is at an all-time low in certain markets, but it doesn't mean you're going to break an all-time sold record for your neighborhood. Don't be greedy or you could be left empty handed when you really were hoping to sell.
Greg Nino, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555
RE/MAX Compass (Formerly RE/MAX WHP)
The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.