NerdWallet’s Home Seller Report reveals what buyers and sellers should know in today’s market. NerdWallet recently released itsHome Seller Report. Though the number of homes for sale across the country remain at record lows it appears more sellers will be coming to market over the next 18 months.
According to the report “1 in 6 (17%) of homeowners. plan on selling their home in the next 18 months, and 45% of those planning to sell said recent changes in the housing market have spurred them to sell earlier than initially planned.”
More than 4 in 5 (81%) of homeowners who are planning to sell in the next 18 months plan on spending at least $2,000 on repairs or renovations feeling that will add additional appeal for buyers. NerdWallet Data Analyst, Elizabeth Renter shares her thoughts on the report’s findings. “One thing that surprised me is that 17% of homeowners planning to sell in the next 18 months say they’ll spend more than $15,000 on repairs and renovations before listing their homes.”
With a market defined by multiple offers and bidding wars resulting in homes selling for above-asking prices, Renter thinks sellers can share those renovation costs with eager buyers. “If there’s any market in which buyers are willing to shoulder the costs of repairs or renovations, this is it. The supply of homes for sale is so low, informed buyers anticipate they’ll have to make sacrifices in order to get under contract, first, but also to close on the home,” Renter observes.
Sellers take note—those costly renovations may not be necessary to sell your home to an eager buyer in the current market. “So, while we recommend being forthcoming about repairs that might be needed — and your agent can help guide you through that — there’s likely little need to make costly upgrades in order to get an impressive offer on your home,” Renter added.
The March survey conducted by the Harris Poll revealed motivations by future sellers. Over 90 % will buy another home. Reasons for selling included the two top ones of “wanting to upsize” and “moving closer to family.” Clearly, the pandemic has brought a shift in why people are buying and selling. Only 10 % of those surveyed no longer wanted to be homeowners.
Sellers need to realize before listing their home that there’s a good chance it will sell quickly as this market shows no signs of slowing down. Listen to Renter. “Sellers must be ready for everything to move very quickly. Homes are going under contract in a matter of days, and even closing much faster than usual because buyers are waiving contingencies and even skipping a mortgage altogether, in some cases,” she explains.
They need to be ahead of the game, which could mean finding their replacement home first. “Getting under contract for your next house before you have an offer on your current one can be a little scary, but the risk of not selling is quite low in this market,” Renter observes.
Consider that being a seller in this market is far better than being a buyer. At least for now that is.