Sometimes it's easy to overlook just how great current real estate market conditions are in the Albuquerque area.
In so many ways, it's a win-win for sellers and buyers, thanks in no small measure, of course, to the continuance of low mortgage rates that, in spite of low inventory of available homes for sale, are creating tremendous urgency among buyers to lock-in a low rate, even if it sometimes means compromising a little on their selection of home, due to reduced choice.
For sellers, this is arguably one of the best times ever to list your home. Here's why:
Fabulous buyer sentiment - We've touched on it already, but there can be no better news for sellers than highly motivated purchasers. There is wide awareness that right now is an equally golden opportunity to buy and we've seen a significant number of new first-time buyers who have been largely absent from the market since before the Great Recession years. With no end to low mortgage rates, but equally no guarantees of the status quo, in the foreseeable future, there's every reason to expect this great situation to continue right through the fall and winter.
Less competition right now - Low inventory has been a feature of the market landscape for some time now. While it would seem likely that what is essentially a seller's market would have attracted more homeowners to list, there are a wide range of reasons why this hasn't happened, not least because many people are already locked in to low rates themselves. Whatever the truth really is, this means that those who do list enjoy a lot less competition than one might reasonably expect when there are so many buyers looking for their next, or indeed first, home. Another key benefit of this scenario is that your home will stand out more in the market and is thus far more likely to attract multiple viewings and a lot of interest. Also don't forget that, despite great advice to the contrary, many sellers will withdraw their listings for the holidays, reducing competition even further!
More robust asking prices - Low supply and high demand also dictates that your asking price will hold up better when there are potentially more people interested in making an offer for your property. In fact, for the right property in the right location and excellent condition, it's not uncommon to receive multiple offers at or above the asking price. While it's still very important to price your home "in the market" - please click here to read our last blog which touched on this subject - these days you're far less likely to be involved in having to make price reductions to sell.
Stronger negotiating power - In a situation where there could easily be more than one buyer trying to secure your home, you are much more firmly in the driving seat when it comes to dictating the terms of an offer. Strength can also be gained from deciding which buyer is the best one to go with for reasons other than the offer they have made. Does, for example, the buyer already have mortgage pre-approval? - always a better bet than a casual buyer who has viewed your home on some kind of impulse, makes an offer, then has to see if he/she can qualify for appropriate financing. You also have more power when it comes to buyers making a range of stipulations in their offer - if there's more than one on the table, you can afford to make more informed choices and maybe counter-respond, if there is a need so to do.
More freedom in the future - This rather delicious cocktail of good fortune for sellers at present can put you in a highly advantageous position, irrespective of what your future plans may be. With a better likelihood of maximizing, or maybe even exceeding, the return you're hoping for, all kinds of new options open up to you. If you're upgrading, perhaps you will be able to afford an even better new home, assisted by the proceeds of the sale of your current property. If you're downsizing, then there is the possibility of creating a very useful nest egg of cash for yourself, to do with as you please.
What a great situation for current home sellers. It should, however, be equally recognized that situations change and there are no guarantees that, if you wait until the New Year, for example, that the situation will still look as good as it does right now.
Our best advice is to contact us today to discuss your best options for listing straight away. We'll be happy to answer any questions or concerns that you might have.