Why sell to an Investor in 2021?

A year of high demand and rising home prices is predicted by housing market experts heading into 2021. Home buying and selling rebounded quickly after an initial drop in housing market activity last spring coinciding with stay-at-home orders and closed businesses. Buyers are still willing to move, but in many areas of the U.S., the decreased availability of homes on the market leads to a rise in home prices. As a result, it is the seller’s market that favors homeowners who are now deciding to sell. 

If you’re on the sales fence, you have a few options: you can put your house up for sale soon to take advantage of the current demand, you can wait for the pandemic (as long as it takes) to get a more vivid picture of the economy’s future, or you can choose to stay in your current home for the future.

Here are three reasons why in 2021 you should sell your house.

It is a great time to sell. Houses are flying off the market with multiple bids and offers. There is limited supply. So why sell to an investor? There are several reasons why homeowners sell to investors. For staters, investors can close in as little as 7-14 days, pay cash, no commissions, closing costs, we buy “as-is.” Head over to our Benefits of Selling to Us website. Take advantage of this Seller’s market and make the best decision for you and your family.

Interest rates are expected to remain low.

Even before the first reported cases of coronavirus in the U.S., mortgage interest rates were expected by economists and real estate practitioners to stay below 4 percent on average for much of 2020. The pandemic’s impact has further decreased interest rates and drawn the projection into 2021 as well to incredibly low rates.

According to Freddie Mac, the median interest rate as of Dec. 10 was a record low of 2.71 percent on a 30-year, fixed-rate mortgage. This is not the first time mortgage rates have set a high since the beginning of the pandemic-the first time was on March 5, when Freddie Mac announced that the average rate was 3.29 percent, a 50-year low for mortgage interest rates.

Although low rates are promising for an affordable mortgage, relative to the number of shoppers, there are not enough properties on the market. Expect rising house prices, at least in part, to balance out the low rates. “Unfortunately, combined with high demand, the record low supply means that home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” Sam Khater, Freddie Mac’s chief economist, said in a press release discussing the decline in mortgage rates.

Interest rates are projected to increase as 2021 wears on. Realtor.com expects that by the end of the year mortgage interest rates will hit 3.4 percent, but they should still stay low relative to historical averages.

You Have a Starter Home

Homes at entry-level rates, mostly bought by first-time homebuyers, are likely to see plenty of buyer activity over the rest of the year, particularly if you live in a location where home prices are climbing quickly and bidding wars are normal.

The price range considered to be the entry level depends on where you live, which is generally considered the lower third of the area’s home sales rates.

Danielle Hale, realtor.com’s chief economist, states that the absence of available homes on the market generates opportunities for sellers to benefit from interested buyers, numerous potential buying offers and rising costs.

You Need to Move

It’s still possible to sell your home and find a new one if you decide to move for some reason. The need to shift, however, isn’t always optimistic. You will be concerned about your ability to continue to pay your mortgage if you have lost your work. If that’s the case, a valid choice might be to sell.

If you’re in a market seeing fast home sales, the lack of inventory can help your home sell. By realtor.com’s predictions, a well-priced home, or one that establishes an asking price on par with its market value, will sell quickly while inventory remains low.