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Selling Your Home: Should You Accept an Offer with a Home Sale Contingency?
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Natick Real Estate: Steps to Success
The Natick real estate market
is buzzing with excitement, even
as the inventory of available
homes remains scarce. While we list and sell homes in all area towns, Natick has been particularly busy! If you’ve
been contemplating selling your
property, there has never been
a better time to take the plunge.
Let’s explore why and how you
can maximize your selling potential.
The Spring Surge: A Seller’s Paradise
Despite the ongoing shortage
of homes for sale, Natick’s spring
market has defied expectations.
One recent success story stands
out: a home I listed early in the
season drew an astounding 200
visitors during the first open
house weekend. By the end of
that whirlwind weekend, an accepted offer was in place. The
demand is unprecedented, and
buyers are eager to find homes.
Diverse Buyer Profiles
Natick’s buyer pool is as varied as the spring blossoms. Consider these categories:
Upsizers and Downsizers:
Families seeking more space and
empty nesters looking to simplify
their lives. Renovation Enthusiasts: Some buyers relish the opportunity to transform a property
into their vision of perfection.
Lot-Focused Builders: Developers eyeing the potential of the
land itself, beyond the existing
structure.
Overcoming Hesitations
Many homeowners hesitate.
They think they will never finish “all of the work” to prepare
the home for sale. Perhaps your
house needs some TLC, or you
haven’t updated the kitchen,
baths, or systems. Fear not! In
a market where buyers far outnumber sellers, these concerns
need not hold you back.
The As-Is Advantage
Selling your home “as-is” can
be a winning strategy. Buyers are
willing to pay top dollar for properties with potential. While some
homes benefit from minor fix-ups
or a fresh coat of paint, others
shine just as they are. You don’t
need to embark on major renovations to attract eager buyers.
Coldwell Banker’s RealVitalize Program
To ease the process, Coldwell Banker offers the RealVitalize program. Here’s how it
works: No Upfront Cost: Repairs, improvements, and even
professional staging are covered
without any initial expense. Dedicated Angi Project Consultant:
We’ll match you with an expert
who will plan and schedule the
necessary work. Every situation
is unique. Whether it’s a new
roof, window repairs, or system
upgrades, we’ve got you covered.
How much longer will Natick
homes continue to sell for record
high numbers? In May and June
buyers with children will be focused on getting into a home and
settled prior to school starting in
September. Taking advantage of
the summer market can be beneficial for sellers as the new school
year quickly approaches. The
market is ablaze with opportunity
NOW: Don’t let anything hold
you back. When you are ready,
reach out for a complimentary
Pricing and Market Analysis.
It’s always good to know the fair
market value of your home!
Your Home, Your Choice
Regardless of your home’s condition, discussing your options
is crucial. Let’s explore how to
maximize your selling price while
minimizing stress. Remember,
you’re not alone—we’re here to
guide you through the process.
John McHugh has been a Senior Agent with Coldwell Banker
for 24 years. JohnSellsNow@
gmail.com 978.902.5646 JohnMcHughRealEstate.com
Sponsored articles are submitted by
our advertisers. The advertiser is solely
responsible for the content of this article.
Sell my house in November?
Spring Market! This has become a very popular phrase in real estate. Many families choose the spring and summer months to move. The time can be ideal to find a home and get settled prior to the start of the new school year. People move for many different reasons and a home which is properly exposed and priced will sell at any time of the year! Let’s look at why listing in November may work to your advantage.
Regardless of the season, buyers are always interested in desirable homes, more importantly, being one of the few homes offered in November can be favorable. There will be even fewer homes on the market in this period of historically low inventory, which may make it easier for buyers to zero-in on your home. Fewer homes for sale means less competition!
Winter temperatures and shorter days have no impact on real estate websites and internet searches.Therefore, if buyers are looking online, fewer listings equal less searching to find your home. A property transaction may proceed more rapidly if fewer homes are for sale as well.
Recently, with the lack of inventory, we have seen multiple offers on properties and sale prices tens of thousands of dollars over the list prices (or more..) Many buyers put in reasonable offers over the summer, yet weren’t yet ready to consider offering over list price or waving terms such as a mortgage contingency or inspection and therefore did not have their offer accepted. Many buyers lost out two or three times and are NOW ready to compete more ferociously. Buyers who are looking at homes in November typically have a good reason for doing so. They may have started researching because of a recent work move or another relevant event in their lives. Buyers who are looking in November are sincerely interested, regardless of their motivations.
There may be homes on the market at this time that have been listed for a while. There are always those homes that were priced too high and not perceived as a value by the buyer pool. Perfect time to introduce a fresh new listing!
When someone is asking to see a home for sale when the weather is cold and snowy they are likely to have a genuine desire to purchase. This time of year will find far fewer people wanting to “just have a look.” Fall and winter are natural filters for serious, ready, willing and able buyers.
Right now we know for sure that there are many buyers out there; and very few homes for sale. Not all sellers will be waiting until the springtime to list. What will you do?
To learn more contact John McHugh, Senior Sales Associate with Coldwell Banker for over 20 years. JohnSellsNow@Gmail.com, 978.902.5646
Home Appraisals 101
After receiving numerous questions regarding appraisals from my recent newsletter, I wanted to share more about the purpose here.
During an appraisal, an appraiser will visit the home you are buying or the home you currently own.This professional’s goal is to determine how much the home is worth.
Appraisers consider several factors when determining a property‘s value, including the number of bedrooms and bathrooms; the home‘s size, age and style; and the neighborhood in which the home is located, with a desirable community boosting the home‘s value.
Appraisers will also look at comparable home sales.These are recent sales of similar homes in the surrounding area. By considering how much money these homes brought in when they sold, appraisers can more accurately determine the current market value of the property they are appraising.
The appraisal matters when you are buying a home because your mortgage lender wants to make sure you are not paying more than what that home is worth. After you make an offer on a home, and the sellers accept that offer, your lender will send an appraiser to determine how much the property is currently worth.
What if the appraiser determines that the home is worth the same as or more than what you have agreed to pay? If that is the case, there are no problems and the home sale can proceed. If the appraiser determines that the home is worth less than what you are paying, your real estate purchase might be in danger, because your mortgage lender won’t lend you more money than what the home is currently worth.
If a buyer and seller agree on a sale price of $600,000 but your appraiser determines that the home is only worth $560,000 your lender won’t loan you more than that $560,000.To make the sale work, either you’ll have to increase the offer by $40,000 in cash to make up the difference or the seller will have to lower the sale price from $600,000 to $540,000.
Maybe you want to refinance your existing mortgage to one with a lower interest rate or different term.Your lender will order an appraisal to determine the current value of your home. This is because most lenders want you to have at least 20% equity in your home before they’ll approve you for a refinance. Equity is the difference between what you owe on a mortgage and what your home is currently worth. If your home is worth $700,000 and you owe $500,000 on your mortgage, you have $200,000 of equity in your home.
The appraisal plays a key role in the world of residential real estate, whether you are buying a home, selling one or refinancing your mortgage.
To learn more or sign up for free newsletter, contact John McHugh, Senior Sales Associate with Coldwell Banker for over 20 years. JohnSellsNow@Gmail.com, 978.902.5646.
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The Home Selling Process
Now is the best time to sell your home.
Flashback to March of 2020. While a home with proper pricing and exposure will sell at any time of year, the spring season finds the majority of buyers and sellers taking action. In March 2020 there was a ready, willing and able buyer pool. Buyers anticipated an onslaught of new homes to be listed. The Coronavirus got in the way of real estate business as usual. Instead of the seasonal influx of new properties the pandemic caused an immediate slowdown in new properties being introduced to the market resulting in a historically low level of inventory. Available homes for buyers became as sparse as paper towels and cleaning products on grocery store shelves. Both buyers and sellers spent much of 2020 in limbo. With 2021 starting off with a reduction of positive Coronavirus tests and vaccines finally available, the real estate market is back in full swing. The buyers that were ready in Spring of 2020 are STILL ready and many now have an additional year’s worth of income and savings for down payments. Add to those already planning to purchase a home in 2021 and the result is unprecedented buyer demand.
A deluge of sales toward the end of 2020 with buyers snatching up properties in record time has led to an impressive rebound. With interest rates remaining low and buyer demand high there has never been a better time to sell a home. This is supported by statistics released by Realtor . Com. National inventory declined by over 48% over last year and the inventory of newly listed properties declined by over 24%. Last year at this time there were 34 single family homes for sale in Natick with a median price of $854,500. At the time of this writing there are just 16 single family homes for sale in Natick and the median price has increased to $952,000.
Right now it is common to receive thirty to forty or more showing requests when a new property is introduced to the market. Multiple offers from qualified buyers …sometimes 10 or more! Competitive buyers are doing whatever they can to get their offer accepted. Submitting bids well over asking price, waiving inspection and mortgage contingencies; anything they can do to improve their chances. Sellers should be careful to consider the complete offer: price AND terms, and not be blinded solely by a large number which will ultimately mean nothing if the deal does not move through to closing. Sellers are realizing that there will be a moment in time when inventory will increase and added competition will contribute to the leveling of list prices. Some home owners that had not been considering a move in 2021 are changing their minds. There may never be a better time to take advantage of the lack of supply and huge buyer demand making this the strongest seller’s market I have ever seen.
Home inspections are beginning to return and that’s a good thing
Waiving a home inspection is a risk that many buyers desperate to find a home have been taking in hot markets.
In the flourishing housing markets of 2021 and 2022 where sellers dominated through unprecedented buyer demand, competition was greater than ever. Due to a historic lack of inventory many listings were receiving multiple offers, many much higher than the asking the price. Buyers and buyer agents had to get creative in many ways while attempting to minimize huge increases in the offer price.
Price is important but the terms will frequently dictate the winner. While most sellers would likely prefer a cash offer with no contingencies and a quick or at their convenience closing, few people can afford to go this route. Most people need to take a mortgage. While I always suggest that every buyer have a home inspection, this was frequently the first contingency to be waved in order to strengthen offers that were already at their financial cap. Waving an inspection is not something that should be taken lightly.
A home inspection is important especially when you’re at the top of your budget in a competitive market. An inspection can uncover potential major structural and safety issues in the home that you should know about before purchasing. This is a deeper dive into what may not be present to the naked eye. Beyond cracked panes of glass or loose door handles: things that are not apparent and need to be more carefully reviewed by a professional. It’s a matter of protecting the investment and making a smart purchase. Being one of the largeat purchases most people will ever make, buyers need to make sure that they are educated and as aware as possible regarding defiencies they may be willing to live with, and potential expenses down the road. It is safer to have one now that there is a bit more inventory and a building increase of competition amongst sellers.
When interest rates began to rise and inventory slightly increased we saw mortgage contingencies returning frequently. Buyers are feeling slightly more confident as traditional, less radical offer terms reemerge and mortgage contingencies become routine once again.
It is easy to become overly eager; especially when buyers have lost out over and over in multiple offer situations. Keep in mind, you’re going to be in your new home for a long time: focus on getting as much as you can at your price point and less on competing toward a smart win. Set yourself up for long-term success.
If you are in a competitive / multiple offer situation you can present an inspection contingency with a willingness to assume a certain amount of potential inspection findings in the offer. This is a reasonable way to let the seller know that you’re not seeking perfection. Home warranties are also offered by many companies and can cover major systems and appliances for a period of time (usually with a deductible.)
An inspection is a critical protective step when making a large financial investment in property. Waving one to acquire the property should be carefully considered. It’s always best to consult with an experienced local agent to discuss the risks and benefits on a property by property basis.
To learn more contact John McHugh, Senior Sales Associate with Coldwell Banker for over 20 years.
