I know that this is not consensual, but I believe that we may be experiencing possibly the best moment in recent years to buy and sell a home and make a good deal. And this is a global effect. A huge real estate boom is taking place in the US, with home demand clearly outstripping supply and with many homes receiving multiple offers, often above the value of the offer price.
Demand remains extremely strong, mainly in the mid-market segment and larger typologies, and far exceeds supply.
What motivates this rush to buy/exchange a house?
The pandemic and confinement have brought to light the limitations of many homes. Telework is here to stay and families want a home that allows them more flexibility to combine the new leisure/family/office trilogy;
Banks opened the credit tap, and it has never been cheaper to finance a home than it is today;
Both buyers and owners are motivated. There is a perception that prices may soon fall with the end of the moratoriums, and buyers believe they could get a discount on the prohibitive prices of recent years, before credit conditions tighten. Owners feel that the cycle may be reversing and it is the best time to sell and make a good financial fit.
Why should I sell if I can’t find a house I like at a fair price?
The main obstacle at the moment is the huge gap between supply and demand. Many families would like to change houses but the house they would like seems too expensive and beyond their means. Therefore, either they inflate the price of their house, or else it seems impossible to them. And this leads to a snowball effect, where the seller thinks they have to ask for more money for their house and the buyer thinks everything is too expensive.
At the extremes of the scale we have the unrealism of some sellers and the impudence of some buyers. There are many homes on the market priced 30% above market value, and buyers bidding 20% below market price.
Our role, real estate agents, is to bring information to the market to bring sellers and buyers closer and bring liquidity to a highly illiquid market, so that both can achieve their goals.
I often hear comments from some owners who say: “I only sell if I get a good deal, otherwise I can’t buy the house I want”. This observation is entirely legitimate. However, it should be clarified that the value of a house, while not being exact, is also not arbitrary. I’m sorry, but a 3BR whose market value is €550,000 will never sell for €650,000, no matter how much owners may wish to win a jackpot. It can be sold above the average market value, depending on variables such as: initial price, staging, marketing campaign, negotiation, etc… (that’s what I’m here for, and I promise!). But never, never for values completely out of the market.
There are real estate agents who promise me that I can sell for much more!
Imagine that the market value of your 3BR is €550,000 and you could even get an offer of €650,000. As 95% of buyers on the market use credit, when the bank was to carry out the appraisal and appraise the property for €547,000, what do you think would happen? Do you really believe that the deal would happen or are you just wasting time creating an illusion?
When you ask for a higher value, you usually get a lower closing value. When you ask for a lower value, you usually get a higher closing value.
But how can I make a good deal with the sale of my house?
Want to know the secret to selling above the average market value? It is often doing everything contrary to what you are suggested or what you think is the best strategy…
It consists of making your property unique, at a very competitive price and creating scarcity.
It goes through 4 fundamental aspects of PSMN:
Want to know how to implement this strategy? Talk to me.