One of the interesting things I have noticed in the real estate market today is homes that otherwise might get passed over in a more balanced market are selling fast. Because buyers have so few homes to choose from, they are overlooking defects that would turn them off if they other options.
What that means for you is if you own one of these 3 types of homes and you plan to sell in the next year you should consider selling now. Here are the 3 types of homes…
Homes that back to a busy road or are on a tiny lot
Two of the features most home buyers are looking for are privacy and space in the back yard. Market research has told us buyers are turned off by homes where you can see cars while inside the house. Homes that overlook busy roads or that have a smaller lot typically get passed over. Many times, the price has to be reduced for them to attract a buyer.
The good news for owners with properties like this is recently we have had better than usual success selling both types of homes without reducing the price. Buyers are more and more willing to compromise because they don’t have more than 1 home to choose from. What might have been a deal breaker for them 6 months ago they are willing to look past because they just want to buy a home.
Homes with mold, water or fire damage
Many buyers in our area are very risk averse. Homes that have had mold, water or fire damage can seem scary even if those issues have been remedied professionally. Buyers worry the issues will reappear after they own the house and they will get stuck with expensive repairs.
In the last few months we have sold homes with all these perceived defects. Although some buyers were turned off, in the end all the homes sold for market value prices. Especially if the floor plan is popular, buyers today are more willing to take a chance with homes that otherwise might have scared them off.
Homes with bad floor plans
When you call me to help sell your home, I will ask why you are moving? When I ask this question often the sellers tell me it’s because they hate their floor plan. The truth is there are some floor plans that never should have been built. Maybe they looked good on paper but just don’t work in real life.
Chances are if you hate your floor plan the future buyer won’t fall in love with it either. When a buyer has 3 homes to choose from, they will buy the one they love. In the current market the buyer may not have 3 homes to choose from and is more likely to be less critical of your floor plan. In today’s market that is the difference between your home selling quickly and for top dollar or sitting on the market eventually selling for a lower price.
It may seem like a good idea to hold off selling while the market is good. Right now, the number of homes on the market is low which has caused buyers to be motivated and prices to go up. Many potential home sellers hit a pause and are holding off to put their homes on the market until next year. Anecdotally we have a number of clients ready to sell early next year. As a result, we expect the inventory of homes will somewhat increase next year. If prices have been going up due to fewer homes for sale what do you think will happen to market values when inventory goes up?