Buyers and sellers often don’t know all their options. A leaseback may convince a homeowner to sell now, for example, and buyers could learn about new mortgage options.
WASHINGTON – The National Association of Realtors® (NAR) estimates that nationwide home inventory is down 10.4% year-to-year, resulting in a 2.2-month supply. (“Supply” is the amount of time it would take for all current listings to sell; experts often consider six months a balanced market between buyers and sellers.) Depending on where people live, inventory may be even tighter.
One way to expand inventory is to explain a leaseback for sellers. In some cases, a seller may want to sell but fears the current market and challenge of finding a next home. A leaseback allows them to close on their existing home and lease it back from buyers while still using the closing proceeds to buy a new home.
The leaseback approach gives sellers the time and resources to shop, and usually works best in a seller’s market when buyers are more willing to be flexible with contract terms.
Agents can also think creatively and go beyond homebuyers’ requirements. For instance, they may convince clients to consider a smaller number of bedrooms by asking if a den might make up for that. Or agents can suggest a location that wasn’t on buyers’ radar.
Agents can also tell clients to meet with a lender, noting that they can help brainstorm ways to cut monthly payments, such as buying down the rate on a fixed-rate mortgage or considering an adjustable-rate mortgage. If buyers get more financial flexibility, their potential pool of homes may change and increase in size.
Finally, agents should pick up the phone and call other brokers. Brokers sometimes know of a homeowner who wants to sell but is looking for a specific home, and it’s possible the agent can make something work.
Source: Inman (07/06/22) Busby, Julie
© Copyright 2022 INFORMATION INC., Bethesda, MD (301) 215-4688