Leveraging the 2022 Market to Sell your Main Line Home is not a seller takes all scenario. So 2022 is the year of the Tiger according to Chinese Astrology, will it also be another year of the Main Line Seller? We are all in shock with how much home prices increased in 2021, in some areas up to 19%, and while experts agree that the price increases will slow, due to more inventory coming to market, we want to bring sellers down to earth with just how much leverage they have.
Here are some scenarios where sellers do and do not have the upper hand in 2022.
Contingencies. Home prices are expected, using the most optimistic forecasts, to increase between 7-13%, and this is a lot, but I do see with more homes on the market, that we will stop seeing waiving all contingencies. I always advise my sellers to get inspections prior and to have pricing locked in to get the best offers anyway, but I think we will see contingencies come back.
Cash Offers. If you have cash, should you use cash to invest in real estate? With mortgage rates as low as they are, it does make sense to borrow for many. The savviest and wealthiest buyers borrow over buying in cash, and I think we will see more sellers consider financed sales and not cash in 2022. This is not an example of leverage that we will see.
Home Prices. Most experts agree that pricing will go up. As pricing goes up and mortgage rates inch up, sellers do have the advantage. Mortgage rates are still really low and even with an incremental increase to 4%, this is well below rates prior to the crash. Pricing could be a repeat, to a lesser degree in 2021. If your friends friends dogs sister thinks you can list your home for a crazy amount more than what your local real estate expert thinks, chances are, they are inflating information. There are a lot of ways sellers can win, but over pricing a home is never one of them.
If you are interested in learning ways you, in particular, can take advantage of what will be another seller’s market in 2022, please reach out. I have a seller seminar, an Ebook, that is specific to The Main Line PA, and access to the latest information on the market. Let’s take advantage of this market together, whether you are looking to list your home or to buy an investment property. Kimmy Rolph sells The Main Line and local areas.
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