Why Do Sellers Sell And What Is Holding Them Back

Dated: 08/04/2016

Views: 457

Why do sellers sell? And what’s holding them back?

Fifty-two percent of homeowners say it's a good time to sell in their neighborhood – an increase from 34 percent who said so last year, according to a survey conducted by the real estate brokerage Redfin.

What's more, 58 percent of homeowners believe sellers have more power than buyers in the market right now, nearly the highest level of seller confidence the researchers say they've recorded.

Top reasons sellers want to sell now

  • A larger or nicer home: 40%

  • Relocating to a new city: 24%

  • Pull out my profit: 21%

  • A smaller or less expensive home: 20%

  • A change in family status: 19%

  • A better school district: 15%

"Many move-up buyers have told me they are buying now to take advantage of low mortgage rates," says William Porterfield, a real estate professional with Redfin in Little Rock, Ark. "Buyers are trying to get as much home as possible before rates rise."

Still, some Americans expressed concerns about selling, mainly about finding a new home to buy when they sell their own.

Top concerns about selling

  • Might not find another home I want: 30%

  • Prices might fall before I sell: 26%

  • Might not find another home I can afford: 25%

  • General economic conditions might discourage buyers: 23%

  • The appraisal might come in low: 19%

Price matters

When it comes to setting a price for their home, 55 percent of homeowners say they'll price in the middle range based on comparable sales. However, 19 percent of homeowners said they would price high, citing that negotiation is inevitable; and 12 percent said they'd price high because if the market didn't value their home enough, they would wait until it did.

"While we're noticing a shift among sellers in terms of their confidence in getting their homes sold quickly and for good prices, it's up to the agent as their advocate to keep their expectations grounded and recommend a pricing strategy that is most likely to get the best value for their home," says Sascha Gummersbach, a Redfin real estate agent in Atlanta. "A seller's market doesn't grant home owners a license to skip things like valuable upgrades, home staging or setting a price based on comparable homes in their neighborhood."

Source: "Most Home Sellers Think Now Is a Good Time to Sell," Redfin Research Center (July 28, 2016)

© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688

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