How to Succeed in the Spring Market
We're prepping potential buyers and sellers for the spring market! Traditionally, spring is the time when residential real estate gets busy, and the more you know, the better prepared you will be for a successful process. While this year we'll look a little different than years past, a lot of this information is true. Each and every year we will set expectations for buyers, sellers, and those trying to both at the same time. Let's prepare for the market conditions that are just around the corner!
What Does the 2021 Spring 2021 Housing Market Look Like?
Spring in general tends to be very popular because it allows people to buy or sell and move at the end of a school year. That tends to be our most popular season for people to move at that season.Residential real estate often is impacted by the school year. Another reason spring is so popular is due to it being past the holidays and it not being a popular time to vacation. spring is past the holidays. It's not as popular a time to vacation. People are really focused on real estate and making sure that they get to the next place that they want to be.
With residential real estate, it's really all about supply and demand. There tends to be a lot more houses on the market, because a lot of people are looking to move; however that means there are a lot more buyers out there as well. Ultimately. you get more selection with more houses on the market, but you are pretty much guaranteed to have more competition. We expect that this year is going to be really similar to other years in that we have extremely low inventory right now, but a rise in inventory as the vaccine rolls out and consumers get more comfortable selling their homes. However, we still anticipate that inventory is going to be pretty tight this spring versus springs' in the past.
How To Prepare for buying a home during the spring
1. Prepare for competition. This is a seller's market, so multiple offers are pretty standard.
2. Get pre-approved. Talk to a lender and have a clear picture of your finances.
3. Know your budget. Take into account what you want to pay monthly.
4. Consider homes under your budget. This will give you room to flex up during bidding wars.
5. Do your house homework. Check zillow, go to open houses, walk around neighborhoods, and get an IN PERSON feel for what you desire in a home.
6. Have clear criteria. Talk to your spouse about what you want, your non-negotiables, and look at homes within your desired school district.
7. Have a clear timeline. Consider your lease, if you’ll have to pay multiple mortgages, and how quickly you can feasibly/financially move.
8. Guard your heart. You need to be prepared to fall into the process quickly, but really guard your heart and not fall in love with the house until you're close to closing. You need to like the house enough to get under contract, but there are several hurdles in the process that you're going to need to get through.
Speak to Your Realtor
We suggest having a very frank conversation with your realtor and ask them, “Do you expect that with the search criteria that I have, am I going to be in a competitive situation?” Having that conversation with your realtor will help you understand what an offer realistically is going to look like so that you're prepared. This will give you an idea of how much you will have to offer based on the home's listing price and what a winning offer would look like. We're not going to dive into all the details of what that looks like in this blog, because we think that's an entirely separate one. We want to just touch base and let you know that that's a whole other topic and it's something you can do to prepare yourself so that you're ready to go. Follow your realtor's guidance and advice when you're writing an offer!
How-To Prepare For Selling a Home During the Spring
1. Get in touch with your realtor. They’re going to be a huge advocate in making sure that you get your home sold on your preferred timeline.
2. Start prepping your home NOW. Your realtor can give a consultation on what would be the best return on your investment i.e. staging, repainting, fixing your roof.
3. Book contractors/tradespeople ASAP. Spring is a really busy season for them so get them on the books ahead of time, otherwise this could impact your timeline moving forward.
4. Establish the value of your home. Work with your agent to understand the range your house would sell at today and get a handle on the value of your home in today's market.
5. Be financially aware. Things to factor into your budget: light updates, closing costs, warranty title, policy repairs, and paying off your mortgage. Ask your realtor for a net sheet so you don’t have any surprises!
6. Have realistic selling expectations. There’s a misperception that your house will sell for 20 thousand dollars more, because there are more sellers. While it may be true that because demand is typically increased in the spring, you may see a higher return than other times of the year; it is not a guarantee.
Trying to Buy AND Sell During the Spring
If you’re going to be a seller and a buyer, don’t be overwhelmed! This is very common and doable, with a lot of different options depending on your timing and financial picture. We have an entire blog going into the specifics and nitty gritty about how to buy and sell a home at the same time that you can find here. With that being said, there's one specific option that we want to share with you that we didn’t go into depth on in that blog. The one thing that we really want to address here is how do you get the funds to buy and sell? A lot of people’s fears are finding a house and not being able to act quickly enough. People want to make sure that they get the right next house and that they aren’t left homeless, because they had to sell their house and they couldn't find the next house quick enough or vice versa. They sold their house and now they have to buy a house that they're not really happy with.
We are super excited because we have exclusive access to a program that allows you to use the equity that's in your current home so you don't have to have extra liquid funds available for a down payment, get to use the equity in your current home to choose your next home, purchase it, move into it, and then sell your house so you don't have to have the extra funds. You don't have to be homeless and you get to choose the exact home that you want. You don't have to let people through your house and have the hassle of showings while you're living in your house. You're beating out all of that. On top of that, there's an option to get funds through them to spruce up the home that you're selling to make sure that you're going to get top dollar. This program will lend the funds to pay the mortgage on your existing home for up to six months until it sells so you're not stuck with that dreaded double mortgage.
We just want you to know that there are options out there. If you're really thinking about that, stressing about that, have a conversation with us. We'd love to talk to you about how to make this work in a way that really works for your specific situation as realtors.
We’re Here to Help!
We love the spring, even though it can be a crazy time for us. We always want your real estate experience to be as smooth as possible. So follow these tips to avoid headaches in the near term. For those of you looking for a great spring market experience, some of our other episodes will help you in even more detail. For our first time homebuyers Episode 7 answers the question, “Am I ready to buy a house?” And if you're selling your home and moving to your next one, don't forget to listen to this episode!
That wraps up this Where We Live blog about the spring market! We want to hear which topics interest you. Head on over to WhereWeLivepodcast.com to continue the conversation in our Facebook group, read more blog posts, listen to our podcast, and connect with us!
Until next time,
Keelie & Brianna