John McHugh

by John McHugh

If anything good came out of 2020 it is the impact that the year’s events have had for today’s home seller. Lack of available inventory and pent-up buyer demand are driving home prices to an all-time high.

Flashback to March of 2020. While a home with proper pricing and exposure will sell at any time of year, the spring season finds the majority of buyers and sellers taking action. In March 2020 there was a ready, willing and able buyer pool. Buyers anticipated an onslaught of new homes to be listed. The Coronavirus got in the way of real estate business as usual. Instead of the seasonal influx of new properties the pandemic caused an immediate slowdown in new properties being introduced to the market resulting in a historically low level of inventory. Available homes for buyers became as sparse as paper towels and cleaning products on grocery store shelves. Both buyers and sellers spent much of 2020 in limbo. With 2021 starting off with a reduction of positive Coronavirus tests and vaccines finally available, the real estate market is back in full swing. The buyers that were ready in Spring of 2020 are STILL ready and many now have an additional year’s worth of income and savings for down payments. Add to those already planning to purchase a home in 2021 and the result is unprecedented buyer demand.

A deluge of sales toward the end of 2020 with buyers snatching up properties in record time has led to an impressive rebound. With interest rates remaining low and buyer demand high there has never been a better time to sell a home. This is supported by statistics released by Realtor . Com. National inventory declined by over 48% over last year and the inventory of newly listed properties declined by over 24%. Last year at this time there were 34 single family homes for sale in Natick with a median price of $854,500. At the time of this writing there are just 16 single family homes for sale in Natick and the median price has increased to $952,000.

Right now it is common to receive thirty to forty or more showing requests when a new property is introduced to the market. Multiple offers from qualified buyers …sometimes 10 or more! Competitive buyers are doing whatever they can to get their offer accepted. Submitting bids well over asking price, waiving inspection and mortgage contingencies; anything they can do to improve their chances. Sellers should be careful to consider the complete offer: price AND terms, and not be blinded solely by a large number which will ultimately mean nothing if the deal does not move through to closing. Sellers are realizing that there will be a moment in time when inventory will increase and added competition will contribute to the leveling of list prices. Some home owners that had not been considering a move in 2021 are changing their minds. There may never be a better time to take advantage of the lack of supply and huge buyer demand making this the strongest seller’s market I have ever seen.

John McHugh is a Senior Associate and has been with Coldwell Banker for twenty years. He can be reached at JohnSellsNow@Gmail.com 978.902.5646

Home inspections are beginning to return and that’s a good thing

by John McHugh

Waiving a home inspection is a risk that many buyers desperate to find a home have been taking in hot markets.

In the flourishing housing markets of 2021 and 2022 where sellers dominated through unprecedented buyer demand, competition was greater than ever. Due to a historic lack of inventory many listings were receiving multiple offers, many much higher than the asking the price. Buyers and buyer agents had to get creative in many ways while attempting to minimize huge increases in the offer price.

Price is important but the terms will frequently dictate the winner. While most sellers would likely prefer a cash offer with no contingencies and a quick or at their convenience closing, few people can afford to go this route. Most people need to take a mortgage. While I always suggest that every buyer have a home inspection, this was frequently the first contingency to be waved in order to strengthen offers that were already at their financial cap. Waving an inspection is not something that should be taken lightly.

A home inspection is important especially when you’re at the top of your budget in a competitive market. An inspection can uncover potential major structural and safety issues in the home that you should know about before purchasing. This is a deeper dive into what may not be present to the naked eye. Beyond cracked panes of glass or loose door handles: things that are not apparent and need to be more carefully reviewed by a professional. It’s a matter of protecting the investment and making a smart purchase. Being one of the largeat purchases most people will ever make, buyers need to make sure that they are educated and as aware as possible regarding defiencies they may be willing to live with, and potential expenses down the road. It is safer to have one now that there is a bit more inventory and a building increase of competition amongst sellers.

When interest rates began to rise and inventory slightly increased we saw mortgage contingencies returning frequently. Buyers are feeling slightly more confident as traditional, less radical offer terms reemerge and mortgage contingencies become routine once again.

It is easy to become overly eager; especially when buyers have lost out over and over in multiple offer situations. Keep in mind, you’re going to be in your new home for a long time: focus on getting as much as you can at your price point and less on competing toward a smart win. Set yourself up for long-term success.

If you are in a competitive / multiple offer situation you can present an inspection contingency with a willingness to assume a certain amount of potential inspection findings in the offer. This is a reasonable way to let the seller know that you’re not seeking perfection. Home warranties are also offered by many companies and can cover major systems and appliances for a period of time (usually with a deductible.)

An inspection is a critical protective step when making a large financial investment in property. Waving one to acquire the property should be carefully considered. It’s always best to consult with an experienced local agent to discuss the risks and benefits on a property by property basis.

To learn more contact John McHugh, Senior Sales Associate with Coldwell Banker for over 20 years.

JohnSellsNow@Gmail.com

978.902.5646

Now is the best time to sell your home.

Home inspections are beginning to return and that’s a good thing