Move? In THIS market? Are you crazy?

Dated: March 15 2021

Views: 263

Yes! Move! Please move!

I'm actually quite serious, please move. 

The Raleigh-Durham-Chapel Hill market is one of the hottest markets in the country, and if you live here, then you know exactly why. To start, we are a hot bed of higher education with Duke, UNC, NC State, Shaw, NC Central, Peace College, Campbell, and Meredith, plus three seminary schools and a handful of satelite campuses. We are rich with entrepreneurs and start-up companies, and we're kept stable through our tech and pharmaceutical sectors. No matter what your jam is, you are sure to find it here, from live music to delicious food to breweries, the arts, and outdoor adventures. Plus, there's the people, all of us, who keep the area friendly, welcoming and diverse. We love our piece of America so much that everyone is moving here and no one is leaving.

But we need you to move. You don't have to get out, in fact, we really want you to stay, but it would be nice if there was a wee bit of reshuffling, because we have a wee bit of a housing shortage. Typically, we have about 8,200- 8,600 houses available every spring, but this year we have just over 2,000 houses, which makes for a ridiculously tight spring market. Folks just aren't moving around the way they normally do. The funny thing is that people actually want to move-- they're just nervous. You see, we're stuck in a bit of a self-fulfilling prophecy loop-- despite everyone's desire to move, too many people are scared to sell in case they can't find another house to move into, so everyone stays hunkered down in their current home, even though they are completely over where they live and are in desperate need a change of scenery, which, of course, leads to fewer homes on the market. If everyone just moved like they wanted to, then there would be plenty of home available.

I understand the fear, though, and it seems bleak: only 2100 homes on the market, houses going under contract before you even know they are available, multiple bid situations, and crazy high due diligence amounts. All of that only pertains to the sales of existing homes; it does not pertain to new construction. With new construction there isn't any bidding, the builder sets the deposit amount so you aren't risking tens of thousands in due diligence money, you get a new house that is under warranty, and in many cases you are buying into a delightful new part of the Triangle before the area gets hot. So let's reframe this conversation and see what a glorious opportunity this market has presented home owners with:

High resale values. While there are always a few exceptions to every situation, we are consistently seeing homes sell for thousands more than the list price. In a typical market buyers do their best to negotiate down, but they now want houses so badly that they are bidding well above the list price, which makes it the perfect time to sell. Maybe that nice new home you've been dreaming about is more within reach than you previously thought.

High due diligence. Due diligence is part of an offer to purcahse, and the money the buyer offers a seller to take their house off the market so they can inspect its condition. If the buyer continues with the purchase the payment is credited to the sale, but the seller keeps the money if they change their mind and decided not to buy it after all. DD money varies, but it has historically been low, maybe 1% of the home's price, but in this market, smart buyers are sweetening their offer with high due diligence amounts, like $15,000, $20,000, and up. Since the DD money belongs to the seller, no matter if the buyer closes the deal or not, it could be a nice deposit on a new house. 

Low interest rates. Super low interest rates. While there is no 'standard' interest rate for everyone, rates around 3.2% for a 30 year fixed and 2.8% for a 15 year fixed are not uncommon. 

Y'all, that's the trifecta for homeowners: you can sell your house for top dollar, pocket some nice DD cash, and get a mortgage with an extremely low interest rate on a fab new house. The question isn't, 'should I sell?' the question is 'why aren't you?' Plus, you can feel good about alleviating our current housing crunch by putting one more house on the market. A win-win for everyone. 

While it's a fabulous opportunity, it's also a big decision. Let's start by reviewing your home and assessing its value, then we'll tour some of the beautiful new home communities in our area to find something that's perfect for your next chapter. Our local builders are savvy and future-focused and know what buyers want in a new home, like gorgous kitchens, lots of closet space, tankless water heaters, a roof that will last 30 years, and a community center with a pool. Forget weekends of pesky home maintenance, you'll just need your sunscreen! Remember, buying new construction is like buying a resale-- you always want representation when dealing with a seller, especially when the seller is a huge corporation, and it is always at no cost to you. 

So whose excited to move? Call me!

Blog author image

Nicole Baxter

As a practicing Interior Designer with 25 years of residential design and construction experience, a licensed REALTOR, and certified Myers Briggs administrator, Nicole is a professional house whispere....

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