How Low Inventory Benefits Home Sellers Right Now

If the constant winter cold snaps make it seem like spring will never arrive, think again.  The flowers may not be blooming yet for a few more months, but in the world of real estate, the spring selling season is nearly upon us. 

In years past, the market would heat up in March or April, but nowadays, the seasons tend to melt into one another.  Those looking to buy are getting an earlier start, and those looking to sell are urged to get their homes on the market as soon as the holidays are over.

If you are planning to sell, it’s a good idea to get your home listed right away.  While numbers out just this week from the Massachusetts Association of Realtors report an 11% increase in pending home sales, MAR says sellers need to list their homes to address the low inventory levels facing most areas right now.  That said, they predict that 2014 will be another banner year for real estate across the Commonwealth.

The dearth of available homes for sale in Massachusetts means that sellers have the upper hand right now, and competition in the marketplace can only drive up demand, and, in turn, home sales prices.  Buyers are still looking for a house that fits their needs, is value-priced, and is move-in ready, so don’t take those prospective purchasers for granted. 

That said, with properties in the sought-after Metro-West area being scooped up faster than in most, it’s important to consider those who might be interested in owning your home.  A professional real estate broker will advise you to accept offers from buyers who are:

Ø  Pre-Qualified – you should only consider buyers who are pre-approved for a home loan.  Knowing they can afford your asking price will expedite the process, and you’ll know there will be less chance there’s a snag in the financial transaction.

Ø  Not Putting Forth Any Contingencies on the Sale – if you have more than one offer, choose the offer with the best terms; in a competitive bid situation, some buyers are even waiving home inspections and finance contingencies.  All terms should be considered before picking the right buyer.

Ø   Can Provide a High Down Payment or Use Cash -- as long as the offer price is competitive, you might be better off with a cash offer over one with a mortgage contingency.  Cash offers advantages like a low risk of appraisal and mortgage rejection, and closings can be done in 2-4 weeks versus 6-8. A lower offer may even be more attractive if it’s made in cash.

One other item to focus on is the price.  Don’t get the impression that you can pick your own price tag because inventory is low.  Smart buyers will have seen the “comps” in your area, and will know what the neighborhood is worth.  Be sure to list your home in the appropriate range.  A desirable, well-priced home may attract multiple bids – in which case, you may get more than you asked for.  

If you are planning on marketing your home in the next few months, do be sure it’s ready to list.  Consider a fresh coat of paint, and pay attention to all the little things that need fixing – chipped paint, broken windows, loose knobs, off-track closet doors, that cabinet that just won’t close right.  Work with your realtor to make sure your home is staged the best way possible, and as you walk through it together, keep an eye out for any small changes that will make it more inviting to the scores of potential buyers who will be passing through your front door.

Sheryl Simon is a Principal at Benoit Mizner Simon & Co., LLC with more than 17 years of experience helping sellers and buyers in the Weston real estate market.  With offices in Weston and Wellesley, Sheryl can be reached at (781) 910-3405 or Sheryl@benoitmiznersimon.com. Benoit Mizner Simon & Co., LLC * 450 Boston Post Rd., Weston, MA 02493 * 54 Central St., Wellesley, MA 02482