Shane Bean with Bean Realty Group
WHY ARE MY NEIGHBORS MOVING? SHOULD I HAVE A DEEPER CONCERN OR DO THEY KNOW SOMETHING I DON’T?
Short answer: Why are my neighbors moving: Most reasons why people move are no different than why people moved 10 years ago or at any time in history. You shouldn’t have deeper concerns, but there is possibly something they know about that you don’t. The answer is at the bottom of the article.
- Better location
- Moving closer to family
COVID HIT THE HOUSING MARKET
The market took a turn when covid hit. The housing market went absolutely haywire. Interest rates were at record lows, the refi market was flooded, and millennials started purchasing in waves making up the largest share of home buyers; while boomers made up the largest share of home sellers. As material costs rose at a record pace, so did home prices.
Looking back I remember pushing people. Saying “buy, buy, buy….buy now.” The funny thing is I can’t tell you how many times I heard FEAR from potential home buyers. Granted, most of the time it was from first-time home buyers saying “I don’t know…are these interest rates good or should they be lower?” I wanted to literally shake them. Some purchased and others didn’t. The ones that did were rewarded substantially. Most of my home buyers that purchased just two years ago have around $200,000 or more in equity and if they purchased just one year ago have $100,000 in equity. These are from buyers that purchased around $200,000 homes, absolutely incredible.
THIS IS MY URGENT MESSAGE FOR HOMEOWNERS:
Now is the time to sell & buy. A lot of people are missing the best market now by waiting! If you’re in your forever home, I get it. Don’t sell and enjoy life, but more than likely if you’re in your forever home you have extra cash sitting around that isn’t making you much money. You should contact us to go over strategies to start adding investment properties to your portfolio.
Sellers call the shots, and the proof is in the pricing. For the first time in history, the median home price rose to over $400,000 in the Houston market just last month in April 2022.
Sounds like sellers have it easy? The fact is most don’t because they’re looking to buy, too. This is the number one FEAR right now why people don’t sell. But, there’re a couple of solutions.
Sellers have two escapes from the not-enough-homes-to-buy trap:
1. Buy first, then put up their home for sale.
If you can’t get approved for 2 loans, and most buyers can’t, then you can purchase a new construction home where you have an estimated closing time frame and close on your existing home first. At Bean Realty Group we specialize in new construction and it’s important that you have a savvy agent representing you that’s not going to sell your home too soon. We work out a leaseback option in your contract or sell it in time where you can close on your new home.
2. Accept an offer from a buyer who’s willing to wait while you find a place to buy.
Sellers can even negotiate a rent-back agreement, in which the buyer closes on the property, then lets the seller stay in the home for a few days, weeks, and even months at a daily rental rate. In many cases, Bean Realty Group has negotiated for our selling clients that the first month is at no cost to the seller. That’s right, the seller is living rent-free for a month after closing. That’s giving the seller 60 to 70 days to locate and close on a new home. We have found this takes a lot of pressure off the seller who is now a buyer themselves. Need more time? How about 90 to 100 days? If we negotiate a 2-month rent-back agreement sellers have more than enough time to locate their next home.
DO MY NEIGHBORS THAT ARE SELLING KNOW SOMETHING I DON’T?
It’s all about the money! If you have never been shown how to take your equity from your current home to then purchase two homes, chances are yes, they know something you don’t. It’s becoming more common in today’s market for individuals that have never owned rental property to become investors themselves, owning one primary resident and investment property.
Or have you ever been shown how to take equity from selling your current home and paying off all your debt? Not paying PMI and paying less in taxes! Then chances are yes they know something you don’t.
Then finally if you’re willing and/or ready to downsize. There will come a point in time when you have enough equity to sell your existing home and purchase your new home in cash.
Are you interested in speaking with me directly to discuss your options in purchasing and/or selling your residential property? Contact me now, don’t wait.
Founder and Team Leader
Bean Realty Group