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Local Inventory is LOW – Now is the Time to Sell!

Local inventory is low, I mean VERY LOW! At the time of writing, there were only 14 homes in the Pendleton, IN zip code for sale on the MLS. In addition, in all of the 16 counties included in the Metro Indy MLS, we have only 1.6 months worth of inventory! Definitely a Seller’s Market right now!

While times are a bit strange, people still need homes and the fact is, there are not nearly enough homes to satisfy the need meaning we are still in a Seller’s Market.

Will that change? Of course, the pendulum is always moving, albeit, slow at times. We are entering the outskirts of what we call a “shift” in the real estate market. What does that mean? Glad you asked. Keep reading…

What is a Shift?

A shift is a change from current type of market (seller’s, buyer’s or neutral) to another type of market. Some shifts can happen almost overnight (think Great Recession) while others are a bit slower. So far, this one is just starting and moving slow at the moment. This could change at any time.

What does a Shift Mean for Sellers?

Sellers have enjoyed an unprecedented Seller’s Market now for a few years. Homeowners in general have seen their home values rise month after month. Many sellers have a good deal of equity in their home based on today’s market values. This gives sellers some options…

#1 – Sell your home now and realize the equity that has built up over the last 2 to 10 years. You can use that extra money to buy a bigger home! Or, downsize and put some in the bank!

#2 – Refinance – if you are happy with your home, consider refinancing. Interest rates are still very low and even if you bought your home 2 years ago, you can pull the equity out and put it into home renovations, paying bills or just in the bank for a rainy day!

#3 – Keep your home and ride out the markets. As we said, the market is ever changing. If you are happy with what you have, stay put. Nothing wrong with that, either! Just know it’s a commitment and could be a few years before we experience a Seller’s Market like we have right now.

What should I do if I Want to Sell when Local Inventory is Low?

Okay, that is a really good question! With the current pandemic and uncertain times (see how we have adapted) for the economy, right now, in addition to low inventory, some buyers have become unqualified due to furlough or job loss.

This means that in addition to fewer homes being on the market, we have also lost a few buyers who were ready, willing and able 6 to 8 weeks ago.

Home values have risen but we know locally, that buyers are also very savvy. They will not pay top dollar for homes whose condition do not match their price.

In fact, in the last 3 to 4 weeks, we have seen that homes who are priced right at or just below market value, have ended up with multiple offer scenarios driving the purchase price above asking price – sometimes significantly!

Keep in mind – again – this happens when the condition of your home matches the price point.

That doesn’t mean you have to renovate! LOL It just means your home will stand above the crowd if you use a bit of elbow grease before going on the market.

Getting Your Home Ready for Market

Since local inventory is low, now is the time.

It’s spring and with social distancing and most people staying home, it’s the perfect time to give your house a once over and get it ready for market.

Outside, think things like:

  • Cleaning windows
  • Mulching the flower beds
  • Painting your front door
  • Staging your porch and/or outdoor space with furniture and plants or flowers
  • Trimming the hedges
  • Fix fences or sheds in need of repair
  • Keeping the lawn mowed nicely

Inside, you can:

  • Clean the windows (natural light makes a HUGE difference in the perception of space and the room as a whole)
  • Fix any deferred maintenance items
  • Freshen up the paint in rooms – remember to go neutral!
  • Add cabinet hardware
  • Update light fixtures
  • Replace worn out carpet (laminate is HOT with buyers in almost any room in the house!)
  • Clean out and organize closets, sheds and garages
  • Declutter and donate your unwanted/unneeded items to charity – they all need everything right now from furniture to clothing and everything in between!

Small projects can be done relatively inexpensively and can make all the difference to your home standing out and getting the right offer!

Try to look at your home as a buyer would. From curb appeal to pleasing insides, the whole condition of your home should match market value to get you the most money for your home.

No Crystal Ball

We don’t have a crystal ball. We can’t tell you exactly when home values will level off – just that they will.

Experts don’t believe we will have another housing crash like the Great Recession. The real estate market is much more stable and will probably be one of the things that helps being the economy back this time!

We do know that local inventory is low, right now but don’t know what it will be 3, 6, 9 or 12 months from now. Remember the old saying… “A bird in the hand…”

If you want to take advantage of them now, give us a call. We would be happy to make suggestions that will help you get the most out of your home. That’s what we do – day in and day out.

Ready? Call us today and let’s get this done!