Saturday, September 30, 2023 / by Richard Eimers
Current owners fear the dearth of for-sale homes and high interest rates, but many still desire a move. These are the top issues holding them back.
NEW YORK – Homeowners aren’t listing their homes, which is keep prices up along with buyer frustration.
A fear of many current homeowners who want to upsize or downsize is an inability to find a replacement home. To address this, some companies help owners buy their new home with cash, and before selling their existing home. However, these companies don’t operate in every state and, in some cases, they require a lower selling price or a fee structure that sellers aren’t willing to consider.
Many homeowners don’t want to lose their current low-interest rate – or getting hit with a major federal capital gains tax bill – or potential increases in property tax payments.
Other homeowners feel frustrated because they missed the peak of the previous market, which in most regions took place between April and June of 2022.
Homeowners also face high costs related to improving their homes for sale, as the cost of some building materials continue to rise.
Other concerns are possibly higher insurance premiums if they’re planning on a larger home or one in more desirable location.
Meanwhile, many older adults are opting to age in place.
However, all these homeowner reasons will change over time. Real estate professionals should establish meaningful relationships with homeowners now, so that as changes occur, they will remain top of mind.
Agents also should engage would-be sellers about discussing their dreams in order to keep them viable. Potential sellers can be asked, “Are you going to allow the current market conditions to rob you of your dreams?”
The “dreams” typically include moving up, downsizing, relocating into better school districts, moving closer to grandchildren, living in a community of people with like-minded political views and/or living closer to recreational amenities.
Source: Inman (09/20/23) Medford, Carl