There has been a massive demand amongst homebuyers this year. Interest rates for mortgages are incredibly low and people are looking for stability and security following the pandemic. On top of that, the supply is low as well since many homeowners are staying put. While such a seller’s market might seem like a big advantage if you plan on selling your home, it could be a detriment as well. The following are a couple of reasons why you should be careful if you plan to sell your home during this seller’s market:
- Finding a new home can be a challenge – Home values have skyrocketed, and with so many buyers out there, you may even get more than what you expected should a bidding war start. But remember that there’s a flip side: if you need to buy a home after you sell, you’re going to face stiff competition and may end up overpaying for a new home.
- Many buyers are waiving home inspections – Buyers are waiving certain contingencies, such as home inspections, as a way to entice sellers to accept their offer. However, it may be a mistake to agree to this. Should the home inspection be waived and the buyer finds something wrong with the house after the fact, you may find yourself in a messy legal battle.
- Many buyers are waiving appraisals – If a buyer waives the appraisal and submits a bid that’s much higher than the appraisal would have been, they’ll get stuck having to cover the difference, which they may not be financially capable of doing. As a result, the deal may fall apart.
Be careful when navigating a seller’s market as a home seller. For more advice on selling your home successfully, be sure to contact us at Randy Lindsay today.