Some Homeowners Will Benefit from Other Sellers Going on a So-Called “Strike” This Spring (Are You in a Position to Take Advantage?)
The Lighter Side of Real Estate • April 16, 2023
The spring real estate market isn’t necessarily the best time to sell your house; you can get your house sold quickly and for top dollar at almost any time of year if you price it appropriately and it’s marketed correctly. But spring is definitely a time of the year many homeowners opt to sell their house.
It’s not a bad choice, since there are typically more buyers active in the market looking to buy a home. Plus, there’s a certain energy to the seasonally-driven market which just makes it feel like the perfect time of year to get your house sold quickly and for as much money as possible.
Then again, there are usually also more sellers to compete with in the spring as well, which can take away a bit of the edge you might have when selling during a time of year with less competition. But not this spring…
According to this Yahoo article, many sellers have gone on “strike” this spring, opting to not put their house up for sale.
It’s not that prospective sellers have all colluded as a group to do so; it’s that there’s a good amount of homeowners who have incredibly low mortgage rates on the house they currently own. This is causing some people to hold onto their current house because buying another one would mean taking on a higher mortgage rate.
That’s a fair reason for certain people not to sell this spring, but it’s also the exact reason it makes sense for other people to sell their house now!
Who Should Consider Selling This Spring?
Whether you have a low mortgage rate on your current house or not, there are still some reasons you might want to consider selling now, such as:
- You’ve been considering moving to a lower cost area. If you live in a high-priced area and have been thinking about moving to an area with lower priced homes or living costs, now is a great time to sell and reap the benefits of selling high and buying low somewhere else.
- Moving out-of-area for work. While moving for a job isn’t something you can always time, now is a great time to do so if you have any say in the matter. So if there’s been any hint of having to move for your career, you might want to put that into motion now.
- Moving closer to family. Whether you have aging parents, kids, or grandkids you need (or just want) to be closer to, selling this spring could be the perfect timing.
- Divorce. Deciding when (or even if) you’re going to sell a house due to divorce isn’t always an easy decision. But if you’re in the process of divorcing and it looks like you’ll have to sell your house within the next year, it might make sense to do it during this spring market if all parties can agree to do so.
- Downsizing. Whether you’ve had too much space for quite some time, or are a recent empty-nester and just know you should eventually downsize, you should think about putting your bigger house on the market to capitalize on a pool of buyers hungry for a large home. (This is especially true for anyone who’s been living in their house for decades and has no current mortgage, has a second home to move into, or is planning on moving into a retirement home or assisted living facility.)
- You simply don’t like where you live. Life is too short to live somewhere you don’t love.
Why Should You Consider Selling This Spring?
If you fit into any of those categories, you might want to seriously consider putting your house on the market this spring and take advantage of the current market conditions, such as:
- House prices are still historically high. While there is data showing that prices have come down a bit in certain areas, they are still higher than they were just a few years ago. In fact, according to Robert Shiller — a Yale University professor of economics and co-founder of the Case-Shiller Index — “Home prices are very high by historical standards…”
- Prices could come down in the near future. There’s been a lot of talk about home prices coming down, yet it just never seems to happen on any catastrophic level. Hopefully it won’t happen to that degree. But while there’s no way to predict when or how much they’ll come down, historically the market eventually takes a dip every so often, and we’re probably due for one sooner than later.
- Less competition from other sellers. There hasn’t been enough houses for sale to satisfy the number of buyers looking to buy a home for the past few years, but the number of listings is down even more this year. CNBC reported that listings are down 20% from this time last year, and that it’s half the amount of homes available at this time of year in 2019, before the pandemic-driven real estate market took off.
- Eventually more Baby Boomers will decide to sell…and there are a lot of them. Economists and real estate experts have been predicting for years that there would be a lot of Boomers selling their houses at the same time. But every year it seems that the majority of them continue to hold onto their homes. At some point there will likely be a wave of their homes hitting the market, which could possibly impact how quickly you could sell your house, and the price you could get if the amount of listing exceeds buyer demand at that time.
The Takeaway:
Many homeowners have a low mortgage rate, which makes them hesitant to sell their house. This creates an opportunity for other sellers to capitalize on less competition and historically high home prices during this spring market.
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For a while now, buyers were waiving their inspection contingency just to stay competitive in bidding wars in many markets. But that’s starting to shift. While waiving inspections still happens in some areas and price points, it’s no longer the default move for every buyer. More and more, we’re seeing offers that include the right to inspect—especially in markets where things are cooling just a bit or buyers feel they have some leverage. If you’re planning to sell, it’s time to expect that your buyer may want a home inspection. And honestly? That’s completely normal. In fact, doing a home inspection is far more common than skipping one. So don’t take it personally or assume something’s wrong when a buyer wants to have a closer look at the property. Is there a chance your buyer will discover an issue with your house? Of course. Could they come back with a list of things they want you to fix or credit—some of which might feel a little over the top? Yup. Will any of it be a deal breaker? Maybe… According to a recent article from the National Association of REALTORS®, the number of home sales falling out of contract has been on the rise. Around 6% of contracts were canceled in recent months—and in May alone, nearly 15% of homes under contract didn’t make it to closing. Deals can fall apart for all kinds of reasons, but one of the biggest culprits behind many of those cancellations is likely issues uncovered during the home inspection. Which is why the article suggests getting ahead of potential problems by doing a “pre-inspection” before listing. It’s not a bad idea in some situations—but it’s not the right move for everyone. So before you schedule that pre-listing inspection, here are a few things to consider. 3 Things to Consider Before Getting a Pre-inspection on Your Home With the growing number of deals falling apart, it’s no surprise that some sellers are being advised to get a pre-listing inspection—essentially hiring a home inspector before the house even hits the market. On the surface, it sounds like a smart strategy: find out what’s wrong before the buyer does, fix what needs fixing, and reduce the risk of surprises that could derail the deal later. And in some cases, it really can help. But before you add it to your to-do list, it’s worth looking at the bigger picture. A pre-inspection isn’t a one-size-fits-all solution—and it may come with a few unintended consequences sellers don’t always consider. Once you know about it, you have to disclose it. Let’s say you already know there’s a water stain on your ceiling. You’ll need to disclose or fix that anyway. But maybe you haven’t been up in the attic in a while, or ever. If your inspector finds signs of a roof leak up there, that’s something you now know about. Which means it’s something you now legally need to disclose to buyers, even if it wasn’t visible before. This isn’t about hiding things (that’s never the goal), but it’s worth understanding: a pre-inspection can expand your disclosure obligations. The buyer will probably still get their own inspection. Just because you’ve had one done doesn’t mean the buyer will accept it and move on. In many cases, they’ll still bring in their own inspector. And guess what? Their inspector might see something yours didn’t. Or interpret the same issue differently. So while a pre-inspection can help reduce surprises, it’s not a magic shield against inspection negotiations later on. You might feel pressure to fix more than you need to. With a pre-inspection, there’s a temptation to fix every single issue before going to market. That might not be necessary—or even wise. Some buyers are perfectly fine with small cosmetic flaws or outdated systems, especially if they’re reflected in the price. Fixing things just because they showed up in your report could cost you time and money without adding much return. You may be better off just letting the buyer do their own inspection and letting you know what they found and what they feel needs to be addressed. Lean on Your Agent’s Advice There’s no one-size-fits-all answer to whether you should do a pre-inspection or not. It really depends upon your particular home, the local market conditions, and even the price range your house falls within. So before you schedule any inspections—or skip them altogether—have a candid conversation with your agent about what makes the most sense for your situation. Your agent can help you weigh the pros and cons based on your home’s condition, your local market, and the type of buyer you’re likely to attract. They can also refer you to trusted home inspectors—ones who provide thorough, honest reports at a fair price. (Not all inspectors are created equal, and your agent likely has experience working with the good ones.) The Takeaway: More buyers are doing inspections again. That’s not a bad thing. It’s just a return to normal—and a chance for buyers to feel confident about the home they’re purchasing. As a seller, that means being prepared for the possibility of inspection negotiations and knowing how to navigate them without letting the deal fall apart. While a pre-inspection can be helpful, it’s not a one-size-fits-all solution. It may prevent surprises, but it could also open up new ones. Before deciding, talk to your real estate agent. They’ll help you understand what makes sense in today’s market—and how to move forward with confidence.
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Why a Newly Built Home Might Be the Move Right Now Are you looking for better home prices, or even a lower mortgage rate? You might find both in one place: a newly built home. While many buyers are overlooking new construction, it could be your best opportunity in today’s market. Here’s why. There are more brand-new homes available right now than there were even just a few months ago. According to the most recent data from the Census and the National Association of Realtors (NAR), roughly 1 in 5 homes for sale right now is new construction. So, if you’re not looking at newly built homes, you’re missing out on a big portion of what’s available. And with more new homes on the market, builders are motivated to sell their current inventory. As a result, many are taking steps to draw in buyers. Builders Are Cutting Prices According to Buddy Hughes, Chairman of the National Association of Home Builders (NAHB): “Almost 40% of home builders reduced sales prices in the last month . . .” That means builders are being realistic about today’s market and adjusting to what buyers can afford. It’s their way to keep their inventory moving. So, builders may be more willing to negotiate price than you’d expect – and that means your dollar may go further if you buy a newly built home. Lean on your agent to see what’s available and what incentives builders are offering in and around your area. Builders Are Offering Lower Mortgage Rates Here’s something most people don’t know. Right now, buyers of brand-new homes often get better mortgage rates than buyers of existing homes. That’s because many builders are also offering rate buydowns to make their homes more attractive and keep sales moving. Basically, they’re willing to chip in to lower your rate, so you’re more likely to buy one of their homes. Data from Realtor.com shows, in 2023 and 2024, buyers of newly built homes got a mortgage rate around half a percent lower compared to those who bought existing homes (see graph below): That kind of savings adds up and makes a big difference when you’re figuring out your monthly budget. So, if you haven’t found something you love yet, it’s time to add newly built homes to your search. You may find that what you’ve been looking for is already out there, it’s just in a new home community. Bottom Line More choices, the potential to negotiate on the price, and maybe even better mortgage rates make these options a bright spot in today’s housing market. If you haven’t considered a newly built home yet, what’s holding you back? Let’s talk about it and see if it’s worth checking out new builds in and around our area.
