Well, we finally made it through 2020! It was a challenging and heartbreaking year and I, for one, am not sad to see it go. 2020 dramatically changed in the way people want to live and work. People left the city in droves with the desire for more space. This caused the demand for housing in Monmouth County to skyrocket, creating a strong sellers’ market. Most economists are predicting this trend to continue in 2021 and I don’t see anything on the ground here in Monmouth County that would indicate that they are wrong.
If you want to sell in this market it is the best opportunity we have seen in over a decade, but that isn’t what I’d like to write about in this newsletter. What I feel is the more difficult challenge at the moment that I’d like to discuss is the process of both selling and buying together in this market. The downside to any strong real estate market is that the stress level is off the charts. I often say my job is half guiding my clients to a successful closing, and half as an armchair psychologist. This couldn’t be truer than it is today!
Below I’ve listed a few questions that I often get from buyers and sellers and my advice:
Should I identify a house to purchase before I list my home for sale?
The answer to this is it depends. Do you need to close on your current home in order to purchase? If you do then it doesn’t make sense to identify a specific home to purchase. I recommend looking at homes more to identify locations and narrowing down what type of property you’d like to live in so that when the time comes you know where to focus.
If I need to sell my home in order to buy a new one, how can I list my home if I don’t have anywhere to go?
I suggest that you make plans in the event that your home sells quickly. Do you have family or friends that you could live with temporarily? Are you willing to rent first before purchasing? These are just a couple of the questions to consider.
What kinds of things can I do as a buyer to make my offer the most attractive in a bidding war?
Obviously, being the highest bidder is one of the best ways to get your offer accepted, but there are other terms that can be sweetened so that you are at the top of the heap. Finding out the seller’s wants and needs can be useful to help you tailor your offer.
These are just a few of the factors you need to consider when buying and selling in this market. If this is something you are contemplating for 2021, please reach out and let’s chat!