By Barbara Lehrer
Real Talk
Barbara Lehrer
The market remains stable with homes in Connecticut still closing over asking price. This combination of high demand and multiple bids on each home has resulted in increased home values.
As your neighbor’s property becomes a closed statistic with a high number, your own home is now worth a new, higher value. Comparable properties, whether selling or not, all benefit from these market times. The number of days a home is on the market has also dramatically decreased, but a frenzy for those who sold to hurry and find their next move is also evident.
All in all, these are good signs. Our state has increased in value in general, and we are in a prime market and a prime season. September’s school days are around the corner, and now that the pandemic has shifted we are all grateful to get back to the old routines. Our local market has always been strong, so let’s enjoy the ride.
Some of the complications of selling high are that the buyers look for more credits after their home inspection. Words like “end of its life” are in the forefront from an inspector’s point of view when it comes to older roofs and furnaces. For example, how long is the life of your furnace if you maintain it? If it is working property, or if your roof has no leaks, then the buyers should not be requesting money back for future problems.
I maintain the theory that you should price your home right, but do not overprice it. The multiple offers you get will exceed your expectations coming in way over price, but possibly with buyer remorse the following week. Another problem with selling high can be the appraised value. The buyer hires a lender who sends an independent appraiser. This person’s job is to make sure your home has the value of its sales price – not the loan amount, as many clients think.
If the appraisal comes in short, there is a decision to be made. There are three options: the seller discounts to the appraised amount, the buyer pays extra out of pocket or they negotiate to a happy medium though the buyer still pays extra out of pocket.
All issues can be worked out. Your real estate agent’s job is to make sure that the deal gets completed properly by keeping everyone on board, happy to work together.
The energy in the market is definitely fed by these low rates, but how long will they last? As food and gas go up in price, so too these rates may eventually go back to 5 percent or more. Let us all make hay while the economy is substantially stable. If you have been waiting for the right moment to sell, now may be the time to make your move.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.