Have you been on the fence about listing your home in this "crazy," seemingly "never-ending" hot real estate market? While there is a lot to consider when selling your home, this may be a decision you'll want to act on soon.

According to Zillow's most recent market report, housing inventory in the U.S. is down 40.5% in comparison to December 2019. While a low-inventory market makes finding a new home more challenging for buyers, there are many benefits for a seller to capitalize on by listing their home now. If you're not totally convinced, let the facts speak for themselves:

Interest Rates Are Rising: What Does This Mean for Sellers?

Buyers love to take advantage of low interest rates... for obvious reasons! Take a look at the chart below (courtesy of MoneyUnder30.com), which displays several scenarios in which even a 1% difference in rates can hugely impact your payments and overall interest accured: 

As interest rates continue to rise (as they are expected to during 2022), there are a few factors to keep in mind as both a buyer and a seller. Most experts would recommend that buyers continue their home search now if they plan to move in the near future, even with low-inventory and rates already returning near pre-pandemic levels. While it may be harder to find exactly what you want right now, future interest rates may put the home you need out of your budget! Given these circumstances, this also gives sellers an advantage when they list now.

Additionally, it's likely that more buyers are going to leave the market as rising interest rates may make it harder for them to afford what they want in their new home. Home prices will eventually need to compensate the difference for buyers to be able to afford the homes on the market when rates are higher. You may be able to list your home for much more now with low-inventory and very reasonable rates compared to what the circumstances may be later in 2022 or 2023.

Low-Inventory Means Less Competition

Plain and simple. Low-inventory means less competition and more interest (and offers!) on your property. There are a lot of buyers that have a true need to move or relocate in any given market. When there is less available on the market, buyers are typically more willing to make sacrifices for things they want to find what they truly need. 

In a market where there's a lot of inventory, there is more competition. Supply and demand basics!

Negotiating Your Moving Needs Will Likely Be Easier

If you're selling your home, unless you plan to move in with family or a friend, you will need to find a new home. Whether you decide to rent after your home sells or find a new home off the bat, you'll have some leverage when it comes to negotiating your needs. In a hot market, buyers are likely more willing to agree on special requests to accommodate closing dates, or if it's an investment property, allowing time for your current tenant to leave. Many sellers are also seeing a great return on their initial investments, which may allow you to look at homes in a price range occupied by less buyers. Every scenario is different, but it's important to keep this in mind if the only thing holding you back is finding your next home.

Older or Outdated Homes May Sell Quicker

If you've just recently considered the option of selling your home, it's likely that you have a few things to fix around the house... or maybe your home is a little older and outdated. In a low-inventory market with buyers eager to move, you may need to spend less money to fix more minor issues (like cosmetic damages or an older roof). Or it's possible you can negotiate a budget into the sale for items that need to be fixed throughout the home rather than spending the time to do it on your own.

All in all, in a low-inventory market like we're experiencing now, putting your home on the market would likely prove to be a great decision. Finding your next home may seem overwhelming, but there are still many advantages for buyers in the market right now, especially considering interest rates are expected to rise as 2022 continues.

So, if you're still on the fence, we'd love to help. Let's discuss your goals and how we can get you there! Reach out to Scott Zielinski at 856-264-8671 or e-mail Scott@zhomesrealestate.com to discuss what may be the best route for you!