By Samson Weinberg
Rochester, New York is currently experiencing a housing boom and this is having an effect on those looking to sell their home. Although inventory is at a record low, prices are soaring to record highs, which bodes well for anyone looking to get the most from their property sales.
To help you understand this better, here is everything that you need to know.
Selling Fast At Competitive Prices
Due to the record shortage of houses in the Rochester area, potential buyers are entering a highly competitive market that looks to benefit home sellers. If a seller wants a home, they’re going to have to bid high and bid fast in order to secure it. This means that sellers are able to sell their homes for higher than average prices, as sellers are willing to pay more for their properties.
Closed sales in February of 2021 jumped 24% when compared to the same time in 2020. However, the inventory of available houses has fallen with 31.5% fewer homes available. This has also increased the median sale prices by 22% from the same time last year.
Additionally, COVID-19 has also changed what home buyers are looking for, and many are now willing to pay more for additional space. This phenomenon most likely stems from the lockdown situations, where many families found themselves cooped up together in a small residence.
The competitive market and fast sales also mean that sellers are more eager to purchase a property without the usual inspections or waiting periods. Many are willing to purchase a property over asking prices and without contingencies just to ensure that they can beat other bidders.
What This Means for Home Sellers
If you are selling your home in the Rochester, New York Area, you can expect your home to go fast and most likely for over your asking price. This can give you the opportunity to recoup previous costs such as community association fees and money spent on home improvements. In 2016, homeowners in the U.S. spent approximately $88 billion on community associations, and the yearly fees and dues can stack up for homeowners. However, by being able to sell your home for more, you can get some of this cost back, and put it into your new home.
Similarly, the costs that you put into any home improvement venture, can increase your home price and make it even more desirable. For instance, if you have remodeled your kitchen recently or added any smart technology to your home, buyers are going to be even more willing to spend more to secure your home. If two bidders are eager to purchase your home, this back and forth bidding can drive up the price and garner you a healthy final sum.
What Does This Mean For Buyers?
If you are looking to buy a home in Rochester, you’ll want to poise yourself to be as competitive as possible. This can even mean taking out loans in order to afford a greater downpayment to beat out other bidders.
Typically, hard money loans require a downpayment of 30-40% of the total loan cost, and while this may seem like a lot. It can be one way to help secure the amount you need to purchase a home in this competitive market.
Similarly, if you’re going to be taking out a loan, you’ll want to keep in mind that many lenders follow a 60-80% loan-to-value ratio. This is the method that institutions use to weigh the risk of lending before approving a loan. If the LTV is considered high-risk, the interest rate will be higher.
It’s worth scoping out lending institutions and getting familiar with their rates before taking the plunge, no matter how much you want a specific home.
Getting More For Your Property
If you are a home seller in Rochester, the market has never been better for you. When selling your home, you can expect it to go quite quickly, and for a higher asking price, due to the competitive state of the market. Work with your real estate agent to learn more about how you can take advantage of this state, and capitalize further on your property investments.
Tags: house, housing, real-estate, Rochester, Rochester apartments, Rochester NY
This entry was posted on Tuesday, August 10th, 2021 at 2:35 pm and is filed under Rochester News. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.