Diablo Gazette April 2021
WHERE is everyone going?
Everyone has heard there is a shortage of inventory in real estate. In many cases, this is causing overbidding of not just thousands over asking price, but sometimes hundreds of thousands. I am serious about this. There are sales happening right in your neighborhood with similar stories. But before you put the For Sale sign up, understand that while selling your home is going to be easy right now, it’s where do you go that is the dilemma.
Once your house sells, the buyer will want you to move. Having had this conversation with a number of clients recently who aren’t planning to move out of the area, they quickly realize they have to pay more to get something “better”, “larger”, “different” than what they have. Whether it is a lateral move, a move up, move down or move into a specific school district or closer to the freeway, it is important to be realistic about giving up what you have for what you want.
If you are moving out of the area or state, you might find this graphic interesting. We sometimes think we in California and the Bay Area are in a bubble. This shows that the situation in some states is the same or worse than it is here. Of course, their prices are different, but the overbidding and fighting for homes is present and you may end up paying more than you intended, even in Idaho, Montana, Georgia or Arizona. But you don’t have to leave the state to get your next home. You just have to have the help of an astute Realtor and be diligent and ready for what the market conditions are. (Hand raised!)
What is driving those who leave or move? Covid consequences play a large part causing people to want and need more space as they home school, provide childcare and the kitchen table or corner of the bedroom no longer cut it. In the cases of some of our retirees, they say the state income tax is a driving factor and they pick areas with lower or no state income tax to move to. If they are on a fixed income, they chose areas based on cost of living. Some folks young and old move back to their states of origin, nearer to family and friends. These are circumstances, wants and needs, we were maybe too busy to think about until Covid lockdowns changed our realities and our ability to visit our out of area relatives and friends. Buyers, their move is your opportunity!
So what are buyers looking for? I see a lot of people looking for the home like the one they grew up in. Maybe they want to move from an apartment to a condo. OR, they are looking to move from condo to house, starter house to larger house. There is an expanded need for home school and work from home spaces as many companies are allowing flex time these days even as we resume going back to work. People are combining households and doubling up and want accessory dwelling units or room to put a separate office.
As prices continue to climb, your home will sell to buyers just like those mentioned, and you will find the home that fits your future needs. It takes some coordinating, but for all of those homes for sale, there is a buyer. Maybe your next home is right around the corner.
