You don’t want to ignore what she has to say.
- For many months, home sellers have had the upper hand in the real estate market.
- Suze Orman warns sellers not to be too pushy and wait too long to list their homes.
Ask the typical person if they would rather sell a house or buy one right now, and most people would probably prefer the former. The reality is that today’s real estate market is fiercely competitive and buyers are constantly faced with challenges ranging from rising mortgage rates to exorbitant home prices to bidding wars.
The vendors, on the other hand, have been seated enough. Record inventory levels have given sellers a clear advantage, and many have taken the opportunity to demand ultra-high prices for their homes. In fact, buyers have been so desperate to pick up homes that sellers have been able to get away with not making repairs that would otherwise be breaks.
But financial expert Suze Orman says the tide may finally be turning when it comes to the housing market. And those looking to sell a home in the short term may want to act sooner rather than later.
Sellers could lose their edge
Right now, sellers have an advantage over buyers in that they have a product that is in short supply. But in a recent episode of his podcast women and moneySuze Orman noted that buyer demand is slowly declining, likely due to rising mortgage rates and recession fears.
Additionally, Orman says that in some areas, homes are on the market longer than they have been in recent months. And that means those looking to sell a home may want to list as soon as possible.
The reality is that while mortgages have gotten expensive over the past six months, borrowing rates for home loans could rise even more in the second half of 2022. That’s because the Federal Reserve is going to forward with interest rate hikes in an effort to slow inflation. If borrowing becomes more expensive across the board, consumers are likely to start spending less, which could lead to more moderate prices.
Now, if mortgage rates continue to rise, it could cause more buyers to put their house hunting on hold and pull out of the market. Once that happens, demand should decrease. But at that point, sellers won’t have as much of an advantage, and some might be disappointed with the amount they can order for their home.
This is why anyone seriously considering selling a home may not want to wait. Buyer demand is still reasonably strong right now in most markets, so it might be worth taking advantage of that.
Hire an agent or go it alone?
Those looking to sell a home may wonder whether to tackle the process solo given high buyer demand or work with a real estate agent. And the answer is, it depends.
Selling a house is not easy. Neither does marketing. But those with properties in very hot markets can sell very well on their own and save realtor fees.
Either way, listing a home is something that today’s sellers shouldn’t put off. Those who do so will end up taking unnecessary risk and potentially losing money because of it.
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