We are in a very unique market. Right now our area is showing signs of recovery. We are moving in a positive direction and gaining equity though are a ways off from where we were in 2006 and 2007. With that sellers are seeing signs of hope, and if they are upside down (owe more than their home is worth), they are holding out to allow the market to catch up.
If you are a seller that has enough equity to sell and are wanting to hang on to gain more equity it is important to ask yourself what interest rate you wish to pay on a new home when you purchase. Of course you would say the lowest. By waiting you will gain in a better equity position though understand anything you purchase will also have gained in equity. Thus, what interest rate do you wish to obtain when you purchase again? With rates in the low to mid 4's for most buyers, you have an amazing opportunity.
Right now, resale inventory is very low and there are more buyers out there that are qualifying for homes. Low inventory...high demand...prices go up. Sounds good, except if you are the buyer. Keep in mind due to the major collapses in our banking industry appraisers have been reined in hard and are keeping the appraisals tight. Appraisals will prohibit drastic price increases and will keep our market growing in a conservative, healthy way with moderate growth.
Due to this we are seeing some buyers offering cash over appraisals to obtain their perfect home. The key is price your home at market value. Overpricing your home will cause your home to be on the market too long and in an aggressive market like this an overpriced home will usually sell below market value in the end. Pricing it right from the start will attract the best buyers from the beginning.
Being prepared is also important. It is important to show your home in the best light-every angle! Having your home inspected and repairs completed will show your buyer that you are a serious seller.
Right now I am hearing sellers say they want to wait 3-6 months. Thus, I suspect all forecasts will be accurate in the next 3 months that we will have a dip in prices. We will have more homes on the market and sellers will not be able to push those appraisals like we can in our current market.
Please feel free to contact me and I'd be happy to explain more as now is a GREAT time to sell! 253-569-0106