Selling your home in 2021? One quick research online will tell you that the current California housing market is a seller’s market.
What is a Seller’s Market?
A seller’s market is where demand far outweighs supply. This is where the real estate inventory is short and the number of interested buyers is high.
This market condition puts sellers at an advantage. The tough competition among buyers and low real estate inventory push people to put in higher offers.
If you are selling your house in 2021, you have the ability to price your property high knowing that buyers are willing to spend more.
What California Home Sellers Need To Know
A seller’s market seems like a dream until you get caught up in the practical details.
For one thing, sorting through a bunch of offers can get overwhelming.
For another, saying No to buyers, some of whom have probably struck out on multiple houses, can have its emotional toll.
Here are 3 factors you also should consider when selling your home in the California housing market:
1. Payment. Cash payment comes with a few unique benefits. With a cash offer, you know that a buyer won’t have problems with mortgage approval. You can also expect a quicker closing period through cash transactions. For instance, cash sales can be completed in just 2 weeks, whereas mortgage closings can take as long as 2 months.
Here’s what not many people realize: the highest offer is not always the best offer. Whether you are selling your home yourself or with a realtor, always consider the benefits of a cash sale.
This doesn’t mean you should completely write off mortgage buyers. If you know and trust a buyer’s lender, you can be confident that the lender is able to get mortgage approval.
PRO TIP#1: Do your homework in researching lenders.
PRO TIP #2: Get advice from real estate professionals. Your listing agent should have access to a network of technologies and people that will help you sell your home with the most favorable terms.
2. Contingencies. The fewer the contingencies, the least likely it is for a transaction to fail.
Home selling in 2021 puts you in an advantageous position. As a seller, you can direct the number of contingencies involved, including home inspections. When a home inspection reveals repair issues, a home buyer can back out of a deal.
But if real estate trends are any indication, winning offers are waiving home inspections.
Another home buying trend is waiving home appraisals. It seems that buyers leave out home appraisal contingencies to make sellers take their offer.
3. Offer Specifics. Study the offers as best as you can. The more information you have, the better you can choose.
Remember: you are most likely to compare similar data. So, create a spreadsheet, and input the offer specifics:
- Offer Price
- Payment Method
- Loan Amount
- Type of Loan
- Other Relevant Metrics
This gives you a clearer and better way of weighing your options.
Need more specific home selling advice? Want to sell but don’t know where to start?
If you’re selling your home in Elk Grove, Sacramento, or surrounding areas, we can help. Let’s start here.