Will April Bring Showers of Sales?
Mark your calendar: Mid-April could offer the perfect mix of market conditions for home sellers, according to a new study that analyzed home sale trends.
Results of the study found that sellers could earn as much as an additional $34,000 for their home if they list them during the week of April 14 to 20. These dates are the result of analysis of week-to-week listing metrics, including home prices, days on market and number of listings, from 2018 to 2019 and 2021 to 2023. (The study excluded 2020 due to the COVID-19 pandemic's outsized impact on the housing market.)
Past housing sales data contributed to the April 14-20 sales prediction, including these:
- Home prices during April are typically 10.4% higher than at the start of the year.
- This week also tends to record 18.4% more online views per listing than other weeks. Last year, listing views surged to 22.8% during this week.
- Homes tend to sell about nine days faster during mid-April.
- There are nearly 14% fewer homes on the market during the week of April 14 compared to other weekly averages.1
Preparing New Buyers for the Costs of Home Ownership
Higher home prices are old news these days, but not all buyers are totally prepared for the post-closing expenses. Recent surveys of new homeowners found that the majority (88%!) had discovered that the true cost of owning a home was higher than they had expected. Unfortunately, these and other factors have resulted in a depressing fact: many new homeowners regret their purchase, and over 20% are considering selling and returning to the renter lifestyle.
Furthermore, since many buyers decimate their savings to produce a large down payment, this often results in cash flow problems after move-in. For example, the average new homeowner will spend almost $4,000 on renovations and improvements, around $4,300 on maintenance and repairs, and $5,362 on utility bills each year.
While we're unable to reduce the costs of home ownership for our buyer clients, you may want to spend time going over their potential expenses before assisting them with a purchase contract—especially if they're attempting to decide between two properties. As always, feel free to contact me for details of the latest types of down payment assistance and mortgage programs that may help first-time buyers realize their dreams without regrets.2
What To Learn from a Failed Transaction
No matter how careful we are, a sales contract that appears to be a done deal may not make it to closing. While it can be impossible to salvage a sale, an agent can learn how to help prevent them in the future. Here are some strategies for identifying potential problems before they kill a deal.
Always read the preliminary title report. This applies to buyer's and seller's agents alike. Look carefully for unpaid liens, as the seller will probably be required to pay them off at closing. If they're not prepared to settle the liens or unaware of them, a deal can fail at the closing table.
Never oversell your services. Don't promise your client that a property will sell quickly, that you can get top dollar for their home, or that you can help them prevent foreclosure. When agents can't deliver, clients get angry. This can result in bad reviews, no referrals, and a cancelled contract.
Always confirm investors' proof of funds. If the buyer is an investor buying on behalf of a corporation, LLC, trust, or partnership, make sure that the buyer's authority to sign is valid. If you have an ongoing relationship with a buyer/investor, it's a good idea to ask for monthly proof of funds.
Make sure your buyers' funding is in place. A mortgage pre-qualification is vital when inventory is low. If you have questions about these or any other loan-related subjects, feel free to contact me.3
Today's Renters. Tomorrow's Prospects.
Whether you're prospecting in an area where sales are slow or looking for new ways to build relationships, you may feel like you've run out of ideas. If you're feeling stuck, it could be an ideal time for you to communicate with area renters who plan to buy a home, but don't feel they're ready to take the plunge.
By marketing directly to renters and nurturing these relationships, you can prepare them to become your future buyer clients. Staying in touch and providing valuable information about the home buying process will encourage them to contact you when they're ready to take that next step.
There are plenty of other ways to make new friends, such as providing educational materials that tell renters how to prepare for home ownership. Another smart strategy: provide information about your county/state down payment assistance programs to these renters. (If renters have questions about home financing, simply refer them to me.)
Focusing on renters will help you build a pipeline of potential buyer leads, which can help you reduce your dependence on paid leads while expanding your network.4
Start Packing (Or Tune Into) One of These Summer Events
Sources: 1nar.realtor/magazine, 2nationalmortgageprofessional.com, 3theamericangenius.com, 4theclose.com, 5wavgroup.com
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