Is It Time to Sell?
Have you thought about selling your home in 2022? If you are still on the fence, let’s talk about reasons why it’s a great time to sell:
Low Supply vs. High Demand
All across the country we have seen a very high demand of buyers but very low inventory to choose from.
According to NAR, in 2021 home inventory hit a record low nationally! And it was no different here in Hawaii. On Oahu, we were down to 1.4 months supply in December of 2021. A sellers market is considered to be 0-4 months supply.
As a seller, having multiple buyers competing for your home puts you in a position to get the most out of the sell of your property. The goal is to have a smooth closing and to make top dollar! Now is the time to do that.
Clean & Competitive Offers
Because of low inventory and this competitive market, in most cases, buyer’s agents and their clients have to write very clean and competitive offers to have a chance at getting their offer accepted. Some things we are seeing in this market are:
- Competitive purchase price – many people are offering well over the listed price
- Appraisal gap clause – If the buyer is having to finance the purchase, the lender will only provide financing up to the appraised value of the home. We are seeing buyers offer to pay cash for a certain amount over the appraised value to provide more security to back their purchase price offer.
- Many buyers offer to pay for the sellers closing costs and things such as the survey, HOA documents, termite inspection, etc. This allows you to have very little to zero cost to sell your home and you can walk away with more money in your pocket.
- Quick closings – If this is something that is desirable to you, then it is something that buyers are fighting to do. And lenders are working diligently to get the escrows closed as quickly as possible.
- Minimal contingencies – most offers are coming with as few contingencies as possible. Some are even waiving the survey and/or the inspection just to get their offer accepted. (I do not recommend this)
Having clean & competitive offers allows you to have less stress and walk away with more money at the close of the sell. Which is a huge win for sellers!
Great Time to Buy
Many people don’t want to sell because they will then become a buyer and need to find a new home in this competitive market, and I get it!! But that’s why you hire an agent that is strategic and can help you sell your home at top dollar while also finding you the new home of your dreams. Some ways to do that are:
- Work with the buyers of your home on a leaseback situation. This allows you to sell your home, live it in for a specified time after closing and rent from the buyers so that you can utilize the profit from your home to put towards the purchase of your next home and the offer is no longer contingent on the sell. Cash is king in this market, and utilizing the cash you make from the sell of your home will make you competitive and give you an edge over other buyers.
- Although we are starting to see interest rates rise, they are still historically low rates which makes a HUGE difference over the life of your loan. The less you are paying to finance the loan, the more you will get approved for.
Do you own an investment property and think it may be time to cash out? Have the kids moved out and it’s time to downsize? Are you outgrowing your space and need a new home? Are you just ready for a change? Now may be the time to sell.
Do you know what your home is worth? Enter in your address below to find out.
Would you like to learn more about your options and whether or not it’s a good time for you to list your home? Give me a call TODAY at 808.818.8395.