To Sell or Not to Sell? That is the Question

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Real Estate

Home Sellers, Recession


Today's homeowner has found themselves in a unique position. As we approach a cooling market, many Sellers are on the fence on whether or not now is a good time to sell their home. The economy has left many questions in their minds on if cashing in on a huge nest of equity would be worth the percentage of the equity they would have to forfeit to find a home in their range of affordability in the current market. Inflated home prices, rising interest rates, and less available options in a low inventory market are all concerns that we are hearing from Sellers who are still on the fence on whether or not they should proceed with placing a "for sale" sign in the front yard. Thankfully, these many questions have also presented many incredible solutions for today's homeowner that they may not have considered. Let's explore some of these options.

A Cooling Market Means Less Competition

The pandemic housing market presented a dual experience for homeowners who placed their home on the market and also had to find a new home at the same time. When Sellers became Buyers, the proverbial shoe fit a little tighter on the other foot. They went from multiple offers for $10's of thousands over asking price, to then having to either present multiple offers and/or offer inflated prices with radical terms - like, "as-is", sight unseen, no appraisal, etc - just to win a bid. Crazy! This left a bad taste in the mouths of many Sellers who had never experienced this kind of market before; and, they went from being in the cat bird's seat of a negotiator who could pick from a buffet of offers, to becoming one of the many bidders in a long, competitive line of desperate buyers all looking for the same thing.


Real Estate, multiple offers


Of course, no one was excited about increasing rates. It changed the game for many buyers who either were not ready during the pandemic, could not decide on a home that they liked, or chose to wait until they "found a better deal". Regrettably, waiting has come with a cost, which is the 2-4% mortgage interest rate gravy on top of the housing industry that sustained itself for at least 7 yrs with modest fluctuations in between. This cost has pushed back much of the buyer competition of the pandemic housing market, which now puts Sellers in a unique position to come to the table with competitive, more realistic offers that won't cost them their entire equity cash out, an arm, leg, and their first born. Less competition breeds more opportunities for today's homebuyers.

Inflated Home Prices Brings Valuable Leverage for Homeowners to Become Real Estate Investors 

Homeowners who have more than 30% equity in their homes, or own their homes free and clear have more options than just selling! They can now branch out to become real estate investors using the equity in their homes as leverage. Say whaaat? Some homeowners just love their homes, and have no desire to sell! There's definitely no blame or shame in that. But now, they can own AND invest, which opens them up to an entirely new lucrative stream of income in the real estate market. What are the options? 2nd vacation homes with STVR options to generate income while vacant; international new construction luxury condos at premium pre-sale prices with incredible appreciation projections; vacant land parcels to buy and hold and pay off to use as collateral for other purchases, to develop and resale, or to build upon and rent; and, tax or distressed sale properties to fix and flip or renovate, rent out for positive cash flow, and refinance to purchase more properties. With all of these options, the wheels in your mind should be turning considering all the possibilities!


Real Estate Investment


Now is the Perfect Time to Custom Build

Many homeowners are staying put because they have been less than thrilled with options available. Homeowners who are looking for larger, ranch or executive style homes have been challenged to find options that would make them comfortable selling the home they have.  If this is going to be the true "forever home" that they are aiming to retire in and watch friends and loved ones enjoying the back yard at sunset while they swing on the porch... they are less likely to settle for losing those "must-haves" in a new home just because they can sell their existing home at a premium price. For homeowners in this position, it's a great time to buy land and custom build. According to the 2021 Land Market Report from the Realtors Land Institute (RLI) and the National Association of Realtors (NAR): 

"The national land market had its best year in nearly a decade in 2021, as land sales rose 6% and outperformed the pace of acquisitions of other commercial real estate types" (CBJ News, 2022).

Buyers are eyeing land options like never before, seizing the opportunity to build the home of their dreams exactly like they want it. Established subdivisions with vacant lots are also presenting advantageous opportunities for the seasoned homebuyer to custom build and assure neighborhood curb appeal and home value under the protection of HOA's. Custom builders are offering incredible options and upgrades that may not be available currently in the mass production new construction market, which makes this a more appealing option for homeowners considering whether or not to take the leap.


Home Sellers, Empty Nesters, Retirement


In short, today's homeowners have more advantageous options than they may have previously considered that involve a great deal more than just listing their home for sale. It's still an awesome time to sell AND buy, and there is an industry of professionals who are well versed in these viable options that are ready to point them in the right direction toward the path that would best suit their needs!

For more information on any of these options or more possible solutions to consider as a homeowner in this market, feel free to contact Akia White for a free, no obligation consultation.