The greatest challenge for home sellers this year is finding another home to buy, according to a survey by national realtor Redfin. In a March survey of more than 800 Redfin real estate agents, 65.6 percent said that low inventory was the greatest challenge for sellers in their markets.
“It’s a seller’s market, but the catch is, most sellers need to buy as well,” said Eileen Lorway, a Redfin real estate agent in the Boston area. “This is a conversation I have with many clients at our first meeting. We discuss options like ‘seller to find suitable housing’ contingencies for the sale contract, ‘purchase contingent on sale of current home’ options for the buy offer, rental options, stay-with-family options and bridge loans. Sellers who are buying need to think outside the box a little bit. It’s not easy, but we often do end up closing on sale and purchase on the same day.”
“I also encourage sellers who are also buyers to think about selling first. They should consider temporary rental options, or moving in with relatives after they sell. Then they will be able to take the time they need to find their dream house, know exactly what they’ll have to work with financially, and won’t end up adding unnecessary contingencies to offers, which will give them a better chance to get the home,” said Lorway.
Despite Intense Competition, Buyers Are Having Success With Less than 20 Percent Down
Half of agents reported that the typical down payment for successful buyers in their market was less than 20 percent, meaning there are other ways to make an offer competitive, like working with a reputable local lender who can guarantee to the seller’s agent that the loan will be approved quickly, and building a rapport with the seller.