The “Real” Cost of Buying and Selling in Today’s Market
Your home could be worth more than ever before. In fact, if you sold it today, you might stand to make a huge profit. So, what’s stopping you? Well, that sure seems to be the million-dollar question right now — Quite literally in some cases!
Most of those I’ve surveyed typically respond in one of three ways: “Where would I go?” “How would I replace what I have?” “We don’t want to sell high and buy high.” Each of these responses has merit. The common thread for those who take pause is the need to replace what is already owned. And, to do so seems nearly impossible given housing costs and lack of inventory.
If simply “replacing” what you have is your main concern, I agree. Now is not the time to sell. However, if you’ve been thinking of downsizing, moving to a new area or simply looking for a change in layout or scenery, this may be the very BEST time to consider selling. Profit is just one of many motivating factors to weigh. However, most would agree you shouldn’t settle for less if you already have exactly what your family wants and needs in a home. The same is true when choosing an agent. Don’t accept less than full-service.
Some sellers, believing their home will move quickly, are now sacrificing traditional service for the perception of convenience. Often, the result is an offer or an experience far less fruitful than it could have been. Sacrifices in photo quality, video tours, marketing proposals and more all add up to a less than ideal result. Choosing to work with a newly licensed family member or friend, may not be the best choice either. Some may lack the skills necessary to negotiate on behalf of their client in today’s highly competitive market.
Just remember, a highest-price offer doesn’t always translate to more cash in your pocket! Terms like, “escalation clauses” and “appraisal waivers” may sound fancy in a multiple offer situation…UNTIL you realize you may not have accepted the best offer out there.
Similarly, the lack of agent experience, negotiation skills and contract governance could cost you, as a buyer, much more in the long run. Are you fully understanding that you must come up with cash out of your pocket if you waive the appraisal contingency in your offer? Did you understand that you just offered to pay $xxx OVER the asking price even if the house falls short on the appraisal? Without a seasoned agent, it can be easy to get caught up in the EBAY mentality; winning at all costs and waking up saying “what did I do?”
Full-service agencies provide so much more than a quick sale and can easily guide you through the “what if” scenarios which now occur in almost every transaction. Finding the right agent has never been more important! Shop around, ask questions. Trust me when I say that there are no “dumb” questions. Even the absolute best agents have been thrown a curveball or two. Select carefully if you want to win in this crazy market!