Though working as a real estate agent in a seller’s market does have its benefits, we still can get asked questions from current or potential customers that, if we’re not prepared to answer, can leave them feeling unsure in their decision to put their home on the market. Here are some of the most commonly asked questions that we get from customers in today’s current market conditions, and how we would advise answering them:
Q: IF PRICES ARE ON THE RISE, WHY SHOULDN’T I WAIT TO SELL?
A: It really depends on what your next move is:
- If you are looking to sell and then buy a new home, then making that move now would make sense so that you can get more for your money on the buy side, especially since rates are so low right now. The interest you will pay on your new home will most likely be much less than on the home you are looking to sell.
- If your plan is to only sell, and you are not motivated by any external time sensitive sources, then you can definitely wait, but none of us know when the market will shift and change.
- If you are looking to move into a new home and are interested in keeping your current home as a rental, that is also a great idea to help you build wealth!
Q: IF MY HOUSE WILL SELL QUICKLY, WHY DO I NEED A REAL ESTATE AGENT?
A: There are several benefits to working with a real estate agent, but here are just a few:
- As a real estate agent, there are a lot of things we will do to prepare your home to sell so that we can make sure that you get the biggest return on your investment (i.e price comparisons so it goes to market priced right, direction on staging, etc.)
- We will ensure it gets the most marketing exposure so that you get the attention of all of the buyers who are interested in your home which will, in turn, get you the highest ROI
- Getting an offer on your home can happen quickly but we also need to make sure we help you find the most qualified buyer with the highest probability in order to get it to the closing table.
- We will help you negotiate the price and terms of the home and the inspection terms. Most often it is the inspection negotiation that creates the most exposure for sellers and we want to make sure you get a solid inspection outcome.
- We provide all of the contracts and documents for disclosure to use throughout the entire transaction so you don’t have to hire a real estate attorney to obtain documents.
Q: WHAT HAPPENS TO THE REAL ESTATE MARKET IF MORTGAGE RATES RISE?
A: Mortgage rates have been rising slightly. As rates rise, the cost of what a buyer can get for their monthly payment goes down. Therefore, if you have 10 buyers who can afford your house today, if rates go up 1%, you may only have 6 buyers that can now afford the home. Affordability diminishes and supply and demand levels out since the number of buyers that are able to buy your home goes down. Part of the reason why we have a frenzy of activity in our current market is that it is less expensive to buy than it is to rent.
Q: CAN I SELL MY HOME IF I DON’T HAVE A PLACE TO MOVE INTO YET?
A: In Colorado, you can ask the buyer for a rent back of your home for up to 59 days after they buy your house. That would give you time to help you find your new home. There are also some programs available where you can buy your new home before you sell your current home that you may be able to qualify for. Of course, there is a cost to those programs for the ease of convenience.
If you’ve received questions from sellers that are not listed here that you’d like advice on answering, or if you’re interested in joining CHR, submit your contact info. or give us a call at 720.981.4109.