These are three common “what if” questions of home sellers.
The common "what if" scenarios in real estate can be numerous. Let's discuss some of the key concerns sellers often have when deciding whether it's the right time to sell their house.
The first question is, "What if I wait to sell my house until interest rates come down?" The assumption here is that when interest rates decrease, more buyers enter the market, potentially driving up prices. However, this isn't guaranteed. Waiting for lower interest rates may keep you from selling while there are still active buyers. They might be willing to buy your house at the current price, avoiding the risk of prices dropping due to increased listings.
The next common concern is, "What if my home needs significant repairs, and I can't afford to fix them before selling?" If you can't afford repairs but circumstances require you to sell, don't worry. Price your home appropriately based on its condition, and you'll likely find a buyer.
"Waiting for lower interest rates may keep you from selling while there are still active buyers."
Many sellers wonder about the returns on investing in home repairs before listing. Generally, you won't recoup the entire rehab budget dollar for dollar. It's more likely to be around $0.70 to $0.80 on the dollar. For instance, a $10,000 renovation may yield about $7,000 in a higher list or offer price.
Another common concern is, "What if I put my home on the market, it sells quickly, and I can't find a replacement home?" This is a valid worry for some sellers. You can address this by requesting an extended escrow period or even renting back from the buyer until you secure a new place. A clever strategy some sellers use is including a condition in the listing that the sale can't close until they've found a replacement property.
These are the three key "what if" scenarios that often deter sellers from listing their homes. For our next blog, we'll address the concern of being locked into a low interest rate and facing a higher rate when selling and buying another property.
If you have any questions about your real estate goals, call or email us. We’re happy to help.