Wednesday, August 3, 2016 / by Karen McGail
Fifty-two percent of home owners say now is a good time to sell in their neighborhood. This is up from 34 percent who said so last year, according to a survey conducted by the real estate brokerage Redfin.
What’s more, 58 percent of home owners believe sellers have more power than buyers in the market right now. Redfin researchers note this is nearly the highest level of seller confidence they’ve recorded.
The top reasons sellers say they want to sell now:
- I want a larger or nicer home: 40%
- I am relocating to a new city: 24%
- I want to pull out my profit: 21%
- I want a smaller or less expensive home: 20%
- I have had a change in family status: 19%
- I want to move to a better school district: 15%
“Many move-up buyers have told me they are buying now to take advantage of low mortgage rates,” says William Porterfield, a real estate professional with Redfin in Little Rock, Ark. “Buyers are trying to get as much home as possible before rates rise.”
Still, some Americans expressed concerns about selling, mainly about finding a new home to buy when they sell their own.
The following were Americans’ top concerns about selling:
- I might not find another home I want: 30%
- Prices might fall before I sell: 26%
- I might not find another home I can afford: 25%
- General economic conditions might discourage buyers: 23%
- The appraisal might come in low: 19%
When it comes to setting the price for their home, 55 percent of home owners say they will price in the middle range based on comparable sales. However, 19 percent of home owners said they would price high, citing that negotiation is inevitable. Also, 12 percent of home owners said they would price high because if the market didn’t value their home, they would wait until it did.
“While we’re noticing a shift among sellers in terms of their confidence in getting their homes sold quickly and for good prices, it’s up to the agent as their advocate to keep their expectations grounded and recommend a pricing strategy that is most likely to get the best value for their home,” says Sascha Gummersbach, a Redfin real estate agent in Atlanta. “A seller’s market doesn’t grant home owners a license to skip things like valuable upgrades, home staging or setting a price based on comparable homes in their neighborhood.”
Source: “Most Home Sellers Think Now Is a Good Time to Sell,” Redfin Research Center (July 28, 2016)