Sellers take an upper hand in home dealings

It’s been almost 6 years that the housing market of USA collapsed. But there can be seen a definite hint of recovery in it at the moment, with sellers taking the last calls on the deals. So much so that housing finally seems to be ready to arrive yet again with a bang on the country’s portal. Such stimulation, as Century 21CEO Rick Davidson accounts, “has transformed the mindset” of not only the purchasers, but the sellers also, who had in effect adapted to the market that the buyers had lined up for them in the last few years.

In a drastic turn of events therefore, it’s the buyers now who are desperately hunting for homes, ready to compromise on the type and location of them if need be to clinch the deals….and sellers, having the last say. In a recent survey of above 2000 American nationals it was observed that while 365 of them were on the lookout for their ‘dream homes’, 33% of this crowd was doing that for over a year; 42% quoted offers over the last 6 months; and only 11% of the proposals went through.

40% of American nationals feel that the sun is shining on the real estate market of USA right at this moment and it’s time to make ‘hay’. In other words, it’s a good time for selling houses. Sellers naturally are more confident at this moment, and to add to their buoyancy, demands for homes are also growing stronger by the day.

At present 2.16 million houses are up in the market for ‘sale’, which is 13.6% less than what it was a year back. Trigger? Less homes on the sale front; increasing number of buyers; and sellers unwilling to bargain on home prices like they used to do in the recent past.

A natural effect has been a change in the buyer mentality. Here’s an observation –

  • 85% of the lot were ready to give and take a few criterions to clinch deals
  • A little more than 50% were not-too-rigid about closing dates
  • 31%  had no qualms in buying homes in ‘existing’ condition
  • 29% were ready to shell out more than they had originally budgeted

As for the dream wish list that every home buyer seems to hold close to his heart, there are changes visible here also-

  • Above 50% are ready to sacrifice their dream of an in-community swimming pool in the  society
  • 49% are ready to let go of their desire for a sophisticated basement
  • 37% seems to be ready to give slip to their dreams of a modern kitchen and/or walk-in cabinets

What matters most is that a significant number of homebuyers are now game to look further than their favored home locations and even live far away from shopping and dining centers, not to mention family and work too, for buying homes that fit their bills.

Kevin Hartmann