Time To Sell?
Time to Sell?
If you own a property in the Hamptons, you’re no doubt receiving calls, postcards, emails and texts from agents you know and those who are hoping to know you. Demand for property is high, inventory almost depleted and agents are in need of listings. Right now, when agents call to say there is interest in your property, they really are working with customers who are eager to purchase a house — maybe even your house.
In some of those pitches you may hear prices that sound too good to be true. Before you sign up, please pause and give it careful consideration, however tempting. I’m not saying you have to discount the cold calls. Quite the contrary; take them seriously. Those agents very likely can sell your house for more than you imagined possible back in 2019. But, two things: The calls may not mean someone wants to buy your house (after all, they haven’t even seen it yet) and ... do you really want them to?
It’s a strong market … for the right house
Some of the stories about this red-hot market may be exaggerated (there are not long lines and bidding wars at every listing). But it is true that it’s a seller’s market. Many properties are going faster and for more than we’ve seen in years, and it’s understandable why, after so many calls from agents suggesting compelling prices, you might be convinced to list your home. Indeed, it is a good time to sell — but only if you want to.
The pandemic is likely responsible for this market run-up, but it also changed some other things. Almost suddenly, it seems the current demand is for large, ready-to-use homes, those with private spaces for offices and lots of bedrooms and baths. Supply chain shortages and over-stretched building personnel have delayed new construction and made everything connected with building, repairs and even routine maintenance more difficult and more expensive.
If you have an older and smaller home (by today’s needs, anyway) and are thinking of selling because of flashy headlines and dinner-table stories, you may be disappointed. Yes, a rising tide lifts all boats, but homes are not subject to that buoyant force.
Should you list your house for sale?
If you have a home in need of some updates, want to sell as-is, your certificate of occupancy is not up to date, you have a very ambitious price in mind and are aiming for a bidding war, you are probably going to be disappointed. But if you are keen on selling and willing to be both strategic and realistic, chances are you will get a way better deal than you would have two years ago. Will it be even better if you wait? Hmmmm, let me get back to you.
I have a few questions to help you figure out if you should list your home for sale right now:
Is this your last Hamptons home? Remember that if you’re planning to stay as a home owner in the area, you’ll be subject to this same seller’s market. If you’re planning to move out of the area, you may have a good amount of money to buy something elsewhere, but the way things are right now a newer, smaller house a few miles down the road might cost more than the older, larger house you have.
Are you willing to put in the work to get the best price? I see plenty of people who love the idea of making money from a sale, but who aren’t willing to do what it takes to make that sale. Are you willing to paint and declutter and update your CO? Are you willing to keep the house neat for showings over the summer when you have guests and family coming to stay? If you aren’t, you might be able to sell it — but you won’t be able to sell it at top price.
Are you willing to accept today’s market value? It’s a good idea to talk with a few different brokers, but if you do, be cautious of a price that’s too good to be true. Chances are that you’ll get one very high price and one very low price, and prices in the middle are probably the most realistic. An examination of recent past sales and current competition will determine real market value. We tend to cherry-pick information to suit our beliefs, but markets are efficient. Your absolutely beautiful 20-year-old home is not likely to be worth more than a brand-new house with similar specifications in the same location.
If you answered “no” to all of the above but still feel like you should consider selling just so you don’t miss the opportunity, I’d caution against it. One’s mindset is different if you decide to sell because it’s personally the right time for you to sell versus wanting to get in on a frothy market.
In response to agents offering dazzling prices, I’ve heard many homeowners say “Sure, if you can get me $X, I’ll sell. But know that I will be firm on that price. The house must be sold as-is. I am not leaving until after the season. Oh! And you cannot show the house on weekends.” A week or so into such engagements, the same sellers are surprised the once-enthusiastic agent is not entertaining multiple bids.
If you’re getting calls from several brokers, I’m not saying you can’t or shouldn’t meet with them. Just know that the brokers do a lot of work to prepare for this meeting, which is essentially a job interview. And that’s fine … if there’s actually a job to offer. Before moving beyond the phone, ask yourself if you really want to sell. If you don’t, you might as well stay out of the market.
Listing now, however seemingly rich the reward may be, could be expensive in the long run. But, if selling now is part of your long-range plan, you may have hit the jackpot.