{"id":6708,"date":"2021-02-24T06:00:42","date_gmt":"2021-02-24T11:00:42","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6708"},"modified":"2021-02-24T06:00:42","modified_gmt":"2021-02-24T11:00:42","slug":"how-much-leverage-do-todays-house-sellers-have","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6708","title":{"rendered":"How Much Leverage Do Today\u2019s House Sellers Have?"},"content":{"rendered":"
\n

\"How<\/p>\n

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report<\/a> from the National Association of Realtors<\/em> (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year.<\/strong> This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.<\/span><\/p>\n

Rose Quint, Assistant Vice President for Survey Research<\/em> with the National Association of Home Builders<\/em> (NAHB), recently reported<\/a>:<\/p>\n

\n

\u201cThe number one reason long-time searchers haven\u2019t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.\u201d <\/em><\/p>\n<\/blockquote>\n

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase<\/strong>. This is more than twice the percentage in 2019, which was 19%.<\/p>\n

What does this mean for sellers today?<\/strong><\/h4>\n

It means sellers have tremendous leverage when negotiating with buyers.<\/p>\n

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party\u2019s leverage is based on its ability to award benefits or eliminate costs on the other side.<\/p>\n

In today\u2019s market, a buyer wants three things:<\/p>\n

    \n
  1. To buy a home<\/li>\n
  2. To buy now before prices continue to appreciate<\/li>\n
  3. To buy now and take advantage of historically low mortgage rates while they last<\/a>\n<\/li>\n<\/ol>\n

    These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.<\/p>\n

    Here\u2019s an example:<\/strong><\/h4>\n

    Odeta Kushi, Deputy Chief Economist<\/em> at First American<\/em>, recently identified<\/a> a situation in which many sellers are finding themselves today:<\/p>\n

    \n

    \u201cAs mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home\u2026Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.\u201d<\/em><\/p>\n<\/blockquote>\n

    She then offers a possible solution: <\/strong><\/h4>\n
    \n

    \u201cWhile the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

    There\u2019s no doubt many sellers would love to build a new home to perfectly fit their changing<\/a> wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?<\/p>\n

    Going back to the concept of leverage:<\/strong><\/h4>\n

    As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party\u2019s needs. But how?<\/em><\/strong><\/p>\n

    The seller may decide to sell their home to the buyer at today\u2019s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller\u2019s new home is being built. A true win-win negotiation.<\/p>\n

    Not every buyer will agree to such a deal \u2013 but you only need one.<\/em><\/strong><\/p>\n

    That\u2019s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today\u2019s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.<\/p>\n

    Bottom Line<\/strong><\/h3>\n

    If you\u2019re considering selling your house now but worry a huge obstacle stands in your way, let\u2019s connect. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.<\/p>\n

    Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

    \n\"HowThe housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,85,86,89,122,121,133],"tags":[],"class_list":["post-6708","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-sellers","category-housing-market-updates","category-move-up-buyers","category-new-construction","category-pricing","category-selling-myths"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6708"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6708\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}