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  • If you are considering selling, we may have reached the market "sweet spot"

    Wednesday, February 28, 2024   /   by Amy Brown

    If you are considering selling, we may have reached the market "sweet spot"

    Sellers are also buyers and we know that! And having your next great home waiting in the wings is important. While many of you have been waiting to sell because you weren't sure of where to go, let me share with you what inventory is currently doing so that you know what you can expect to receive from your current home and some options of how we can get you into your next home without having to move twice.

    Inventory

    When selling, it is never optimal for the market to be feast or famine. You want an inventory that is steady enough to provide options for your next move, while being short enough to ensure a great return on your sale.

    Our lowest inventory numbers in over a decade were reached in July of 2022 with only 991 homes for sale in the entire Asheville market center (Buncombe, Haywood, Henderson, and Madison counties). Today we have 1203 homes for sale, a gain of 21.4% in inventory. While this may not seem huge, it is actually a great rebound from the depletion created by bottoming out interest rates and the buying frenzy that occurred beginning in 2020. This depleted our supply drastically but we are currently gaining speed back toward balance. 

    homes for sale 5 yrs.png
    Achieving the "sweet spot"

    As a seller, your sweet spot is going to look like this. You still want the market to be depleted enough in inventory so that your property is one of few instead of one of many, pushing the sales point as close to list or higher as possible.

    But you also want there to be enough inventory so that when you are looking for your next home, you have enough options to choose from and a lessened competitive buying environment so that deposits don't have to be astronomical, you aren't looking at inspection and appraisal waivers to get the deal, and if you are using a lender, you aren't up against multiple cash bids.

    We have achieved the sweet spot!

    While pending sales are on the rise, there are still not a ton of buyers looking today. So there is less competition in years past for the most desired homes.

    pending sales 5 yrs.png

    Also, the average percentage of list price received at sale generally hovers around 94% in a "normal" market. Today we are sitting at 96.2% which means that sellers are receiving above average net sales prices after all repair negotiations and concessions have been decided upon. 

    % of orig list price 10 yrs.png

    What can you do if you haven't found your next home but want to sell today?


    Sellers today have more options than ever before to give them time to sell, get the funds they need to purchase, and buy their next home before they ever pack the first box. 

    Here's what you can do:

    1. The buyer for your home is probably also a seller and needs flexibility with the sale of their home as well. So many sellers in today's market are advertising extended closing periods. For example, the listing will state "seller cannot close prior to _____ ". This will enable you to get your home under contract and still find your next one. 

    The downside to this scenario is that if you need to sell in order to buy, you will have to make a contingency offer which in an Asheville area seller's market is not ideal. 

    So I have an even better solution...

    2. A seller leaseback can be advertised in your listing and what this means is that you are renting back your own home for a specified period of time at a negotiated rate with the buyer for your home. You go ahead and close, get paid, and then pay rent to the new owner until you move out. 

    This allows you to not only stay in your current home, but you also have the cash to finance your next purchase and you only have to move once!

    A seller leaseback is a great solution to make your transition easy and seamless to your next house.