Of the top four answers in a recent survey, “Low inventory: Sellers are worried they won’t find another home to buy” ranked as the number-one worry, with 65.6% of respondents citing it, followed by ‘unrealistic expectations’ of sellers about the real value of their home with 47.5%. In third place were appraisals with 37.4% and ‘no major challenges’ with 20.5%.
“It’s a seller’s market, but the catch is, most sellers need to buy as well,” said Redfin real estate agent Eileen Lorway. “This is a conversation I have with many clients at our first meeting. We discuss options like ‘seller to find suitable housing’ contingencies for the sale contract, ‘purchase contingent on sale of current home’ options for the buy offer, rental options, stay-with-family options and bridge loans. Sellers who are buying need to think outside the box a little bit. It’s not easy, but we often do end up closing on sale and purchase on the same day.”
Lorway, who works in the Boston area, added that sellers who are also buyers should seriously deliberate about selling and consider relocating options such as temporary rent or moving in with relatives, so they can have more time to “find their dream house.”
Despite a shortage of supply, many buyers were still successful in purchasing a home with just 20% or less down – 35.7% of agents said so; 21% reported a successful typical down payment of 10-19% and 24.2% said a 3-5% down payment was enough.
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The number-one worry of home sellers is that continued low inventory will mean they can’t find another home to buy, according to new data from Redfin.