The effect that COVID-19 has had on the real estate market has been truly astronomical. With working from home becoming the new ‘norm’, people are moving to find spaces that better accommodate their needs.
According to census.gov, “Zillow found that nearly two million renters unable to afford homes in metro areas could now afford to buy farther out because they no longer had to commute to work.
As a result, many renters became homebuyers and home and rental prices diverged around the time the pandemic hit the United States.”
Although the height of the most recent housing craze was in the summer of 2021, not too much has changed.
Sellers:
Properly Prepare Your Property - while the current environment is a strong ‘seller's market’, it remains critical that you properly prepare your home. In order to maximize your return it is essential to address deferred maintenance, deeply clean and appropriately stage your home towards your target market.
Hire a Professional - while the belief may be that "homes can sell themselves in this market," it is critical that you hire a professional who can maximize your return on investment. A telling question to research with those you are interviewing is, "what is your list price to sales price ratio over the last 12 months and how does that compare to the average Realtor?"
Buyers:
Properly Prepare to Win - It's true, the current market is highly competitive and most homes will receive multiple offers. While many buyers lament on the challenges of the current market, buyers are winning each and every day. In order to win, you must prepare to win. Not only is it critical to get your financing in order in advance, step ahead of the competition by getting your financing fully underwritten.
Hire a Professional - while many Realtors may struggle to get offers accepted in this market, others are able to achieve strong success consistently. When interviewing agents, consider asking the following questions:
1. What is your strategy for getting offers successfully accepted in the current market?
2. What is the average number of offers you are writing before acceptance?
3. How many offers have you had accepted over the last 12 months?
4. How does that compare to the average Realtor?
Just remember, it is important to remain patient in your home buying or selling journey.
About the Authors:
Torey Carrick and Jeff Anderson are clients of Arise Private Wealth and currently own Anderson Real Estate Group. The couple started the company 12 years ago and have grown it to a team of 25 dedicated professionals. Located in Long Beach, CA, the group serves Los Angeles, Orange County and surrounding communities. The Anderson Real Estate Group is listed in the prestigious REAL Trends™ "THE THOUSAND" rankings. Ranked #170 out of more than 1.25 million Realtors® nationwide. For more information about Anderson Real Estate Group, visit www.andersonreg.com.
