In this episode of “The Russell Real Team Minute Podcast,” Evan Russell, owner of the Russell Realty Group, gives a real estate answer to, “Why is now a good time to sell your home?”
“That’s really what it’s all about; The number one thing is that you get the highest maximum value; the second thing is to get you the greatest return on your investment; and the third thing is, out of all of the offers, you’ll get the best possible terms.” – Evan Russell [03:08]
What You Will Learn:
[00:11] Selling your home: three ways low inventory is a win for sellers
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Ep. 93: Never Been a Better Time to Sell
Intro: Welcome to another episode of Russell Realty Minute with your host, Evan Russell, where Evan shares his real-world real estate experience with you. If you like what you hear, please be sure to give him a quick review right here in iTunes. Thank you for listening.
So, you constantly hear, “Never been a better time to sell. Oh, now’s the time to sell. Thinking about buying or selling? Now’s the time to sell. Rates are low, blah, blah, blah, blah.” Well, here’s three quick ways that the low inventory is actually a win for the seller. Without the traditional can, “Oh, there’s never been a better time to sell,” which is kind of a non-educated version of somebody marketing. “Oh, there’s never been a better time to sell. Give me your listing. I want your money.” Here’s some of the real educated answers as to why it is a good time to sell and why the low inventory in and around your town – especially here in the greater Boston area – why the low inventory in and around your town is a win for you, the seller, right?
The first obvious answer is higher prices, right? Less inventory, higher demand, prices go up. Same thing with the pandemic. There’s a shortage on toilet paper, there’s a shortage on some electronics, there’s a shortage on paper towels. So, what happens? Amazon raises the prices of toilet paper, and printers, and whatever other things that are having trouble getting produced based on the COVID outbreak to COVID pandemic. Well, same thing with real estate. There’s a smaller amount or low number of houses in and around your area. So, what’s that going to do? It’s the old supply and demand. Now, I know everybody’s kind of beat that in your head over the years, “Oh, there’s never been a better time. Sell today Sell today.”
Well, the fact is, it is true, right. The prices are higher, and they’re consistent. Now, how much higher they’ll go? I don’t know. Interest rates are pretty low. The interest rates obviously are the driving force. The lower the interest rate the more people can afford, the higher monthly payment is, the more they can pay for your house. I’m not sure how much higher the price will go. But at this particular point with the interest rates where they are, the higher price and a high price is number one, right?
Number two is you have an investment property or you’ve had your house for a substantial amount of time, you’re going to get a greater return on your investment. The home you bought, you know, way back when for 200 is not worth six, seven, eight, 900, maybe. That’s a gigantic return on your investment. Maybe it’s time to cash out on that investment, go buy something else, and put some money in your pocket.
The return on your investment, the return on the sweat equity in the mortgage that you’ve paid over the years is what’s going to help you solidify your financial future by cashing out. It’s just like a stock, right? The stock prices have gone up, you got in at five, now it’s worth 20, 30, 40 you’re going to cash out. Your real estate’s the same thing, especially if you have an investment property. If you have an investment property or rental income or something like that, now’s the time to unload that because it’s never been higher.
And the third reason to kind of fill in the gap of it’s never been a better time to sell is you’re going to get better terms with more offers, higher numbers, waived home inspection, better money down, flexible closing date. You’re going to get better terms on the offer. You’re going to get the highest maximum price, you’re going to pay the least amount of commission. You’re going to get buyers who are willing to forget any inspection issues, they’re going to waive mortgage contingencies, they’re going to buy cash. They’re really going to compete to purchase your house. That’s really what it’s all about, right?
The number one thing is to get the highest maximum value. The second thing is to get your greatest return on your investment. And the third thing is, of the offers, you’re going to get the best possible terms. So, yes, someone may offer you max value, but if they want nine inspections on top of it, then they’re just going to turn around and beat you up on a home inspection and bring the price back down. So, by getting better terms, you may get a deal that’s maximum value without any inspections. Which means you take the money and run. That to me is the definition of it’s never been a better time to sell.
Outro: This has been another Russell Realty Minute brought to you by Evan Russell.