The Top 7 Buying and Selling House Challenges Most Homeowners Face
Did you know that more than 5.5 million homes were sold in the U.S. in 2017?
The number of homes sold in the U.S. changes every year. However, many of the challenges which face people buying and selling houses stay the same.
Let’s go through the common buying and selling house challenges which torment and frustrate people in the real estate business. Here we go!
1. Supply and Demand of Homes
The real estate market is always in flux!
As supply outweighs rises, demand falls. When demand reaches its peak, supply is can be unable to keep up. This affects buyers and sellers in the market in different ways.
For sellers, it’s a challenge to sell your house if the market is already saturated. If there are already plenty of existing houses and new developments underway, it’s a real challenge to attract buyers.
You just have to drop the price of the house to entice buyers or hold out until the market picks up.
Meanwhile, the crowded market allows buyers to buy a house at a discount rate because sellers are so desperate. Plus, with so much choice, buyers enjoy the luxury of selecting from a huge inventory.
By contrast, when demand is high, sellers have the advantage. In these circumstances, sellers can charge higher prices because buyers are willing to pay more for the same property.
2. Renovations and Repairs
Renovations and repairs are a typical part of buying and selling homes.
Many house sellers become frustrated with the number of home improvements required before they can sell the property. This can include minor improvements, such as paintwork and a replacement carpet, to large renovations, such as an extension or gutting of the shabby kitchen.
It can be extremely tempting for many home sellers to put the home on the market at a discount price for a quicker sale.
On the other hand, buyers don’t want to visit a property viewing if the house still requires so much work. Many real estate agents recommend that home improvements are completed before the marketing efforts begin.
Click here to learn more about how to sell a house which has code violations and requires home improvements.
3. Asking Prices
Asking prices are always a problem for both buyers and sellers in real estate. You can spend hours and hours researching online and consulting real estate experts about how much the property is worth.
Sellers need to set the price of the property at approximately the same price as other similar properties in the same location.
Too much lower and you’ll lose money. Too much higher and you’ll struggle to make a sale.
If buyers spot a particularly high asking price, they’re going to dismiss your price as unrealistic. While if the price is too low, buyers are also going to wonder – what’s wrong with the house?
You need to make sure you work with an expert real estate agent to ensure you set the price of your property at a fair price.
4. Finding a Good Real Estate Agent
The growth in the number of real estate jobs is expected to continue by 6% by the year 2026. Therefore, buyers and sellers are both competing for the best real estate agents around.
It can make a significant difference to your fortunes if you pick an experienced and skilled agent who knows the market.
5. Delays in the Property Chain
Buyers and sellers are both affected by delays in the property chain.
This is the process in which the seller of the property is buying another property at the same time as selling.
When there are hold-ups in the chain, this can result in huge delays before the home buyer can move into the property.
Usually, the longer the property chain, the more likely there are going to be problems along the way. Plus, sometimes significant delays can cause deals to collapse altogether as buyers or sellers look elsewhere.
6. Cold Feet
Over 25% of American households move once per 5 years.
And yet, for some sellers and buyers moving home is a big deal. After all, for most people, your property is the biggest asset you’ve got.
For buyers who change their minds, it’s called “buyer’s remorse.” This is quite common since you can’t try out a home before you buy like other purchases.
For sellers, this is a cause of deep frustration. Now you’re back at square one and need to go out and look for another buyer willing to make the same offer.
When sellers pull out of the deal, there’s simply nothing the buyer can do. You just have to look elsewhere for another property.
This could be because the seller has accepted your offer but then taken another higher offer from someone else. This is called “gazumped.”
7. Chaos on Completion Day
Just when you think the deal between the two parties is completed, it can still fall in at the final moment.
You’ve already exchanged contracts. The date in which you receive the keys for your new home is known as the completion day.
Even something breaks down in the property chain somewhere, you could have the completion day delayed by quite some time.
Therefore, as you approach the completion day, ensure that you arrange for a plan-B if you temporarily left homeless. This is when your family and friends can save the day.
This can extremely stressful buyers and sellers alike. But, it’s a challenge which can be handled if you prepare for it in advance.
Buying and Selling House Challenges
Now you know the top buying and selling house challenges which await you.
It’s important to know that many of these problems can be handled if you prepare for them in advance. Sometimes, you just need to accept that other things are simply out of your hands.
Are you looking to buy a property? Check out the property listings on our website.