The real estate market can be volatile and unpredictable. Real estate prices, mortgage interest rates, and inventory can impact homebuyers’ and sellers’ decisions.
Demographic trends, such as changing family sizes and incomes, can significantly influence housing demand. Government legislation, such as tax incentives, deductions, and subsidies, can also boost or impede demand for property.
Homeowners’ Motivations for Selling
There are many reasons why people sell their homes. Some of the most common are moving closer to the family because they need more space or their neighborhood has become less desirable. Others may be forced to sell because of a job loss, the death of a spouse, or other life-changing events.
Finding motivated sellers from Lang Estates is a great way to increase your sales and commissions. These sellers want to close quickly to get cash and relieve the stress of owning a property. They often agree to a lower offer price and waive the financing contingency to speed up the process.
Another group of motivated sellers are investors who bought and flipped properties for profit. To find these buyers, you can network with local inspectors and ask if they have any “red flag” properties that need to be sold. These properties may have unpermitted landscaping, zoning, septic systems, or code violations. They can be sold at a discount to an investor willing to fix the problem for quick cash.
Homeowners’ Experiences with List Pricing
The home price sellers hope to get for their property is called the “list price.” However, this figure isn’t necessarily what buyers will end up paying. The list price is just the starting point for negotiations.
Brokers advise home sellers to avoid overpricing their homes. A home’s value is determined by its location, size and condition, and the price of comparable homes. Buyers also need to consider closing costs, which include the seller’s sales fee, real estate commission, title insurance policy, and their share of property taxes for the year.
In seller’s markets with high demand and low inventory, buyers may be willing to pay above the listing price. This can lead to bidding wars and result in buyers being pushed into homes they don’t want. This can be a frustrating experience for both parties and may even lead to regret later. A recent survey found that 1 in 3 homeowners aren’t satisfied with how much money they made on their home sale.
Homeowners’ Experiences with Contingencies
Most real estate transactions, like in Clarkston, MI, include contingencies, a part of the contract that details specific, measurable conditions that must be fulfilled by a particular deadline to advance the trade. Generally, these contingencies are for the benefit of buyers, but they can also be used to protect sellers’ earnest money.
For example, a financing contingency allows buyers to leave the contract if they cannot secure a mortgage by the agreed-upon deadline. A home sale contingency may be included if the buyer cannot sell their current property, which is typical for homeowners who want to buy another property before moving.
However, this type of contingency can delay the process and cause additional expenses for the seller. Furthermore, it can leave the initial buyer with two mortgage payments if their current house doesn’t sell by the date they need to move into their new property. This makes the home sale contingency less popular and is often waived by home buyers in competitive markets.
Homeowners’ Experiences with Inspections
Home inspectors play essential roles in real estate transactions. They identify issues that can influence a buyer’s decision to move forward with the purchase, request repairs, ask for a lower price, or back out of the deal altogether.
Homeowners can improve the inspection experience by compiling documentation of recent renovations, addressing maintenance concerns with the inspector before the inspection, and being present during the process. This helps ensure that homeowners understand the scope of the assessment and provide accurate information about the property.
Inspectors can also help homeowners navigate the process by avoiding conflicts of interest, such as offering repair services. Professional guidelines to prevent this misconduct are vital for real estate professionals and homebuyers.