Redfin Survey: Supply Shortage is Home Sellers Greatest Challenge This Year

SEATTLE--( )-- The greatest challenge for home sellers this year is
finding another home to buy, according to a survey by Redfin
(www.redfin.com), the next-generation real estate brokerage
In a March survey of more than 800 Redfin real estate agents, 65.6
percent said that low inventory was the greatest challenge for sellers
in their markets.
"It's a seller's market, but the catch is, most sellers need to buy as
well," said Eileen Lorway, a Redfin real estate agent in the Boston
area. "This is a conversation I have with many clients at our first
meeting. We discuss options like 'seller to find suitable housing'
contingencies for the sale contract, 'purchase contingent on sale of
current home' options for the buy offer, rental options,
stay-with-family options and bridge loans. Sellers who are buying need
to think outside the box a little bit. It's not easy, but we often do
end up closing on sale and purchase on the same day."
"I also encourage sellers who are also buyers to think about selling
first. They should consider temporary rental options, or moving in
with relatives after they sell. Then they will be able to take the
time they need to find their dream house, know exactly what they'll
have to work with financially, and won't end up adding unnecessary
contingencies to offers, which will give them a better chance to get
the home," said Lorway.
Most agents reported that homes were selling faster than this time
last year and that competition was more intense. Among respondents,
57.2 percent had already been involved in at least one instance of a
home receiving 10 or more offers this year. And only 1.8 percent of
agents had yet to be involved in a bidding war.
Despite Intense Competition, Buyers Are Having Success With Less than
20 Percent Down
Half of agents reported that the typical down payment for successful
buyers in their market was less than 20 percent, meaning there are
other ways to make an offer competitive, like working with a reputable
local lender who can guarantee to the seller's agent that the loan
will be approved quickly, and building a rapport with the seller.
"I recently had an FHA-backed offer with 3.5 percent down beat out
four other offers, each of which had conventional 20-percent down
loans," said Redfin real estate agent Tim Zielonka of Chicago. "The
sellers were at the showing. I introduced them to the buyers and
pointed out that both were huge enthusiasts of both vintage bicycles
and classic cars, which put them at ease with one another and enabled
them to form a natural connection. Had they not discovered this shared
interest, my clients may not have gotten the property."
To read the full report, complete with more analysis, charts, detailed
survey results and methodology, please visit:
https://www.redfin.com/blog/2017/03/lack-of-homes-for-sale-is-a-problem-for-sellers-too.html
About Redfin
Redfin (www.redfin.com ) is the next-generation real estate brokerage,
combining its own full-service agents with modern technology to
redefine real estate in the consumer's favor. Founded by software
engineers, Redfin has the country's #1 brokerage website and offers a
host of online tools to consumers, including the Redfin Estimate , the
automated home-value estimate with the industry's lowest published
error rate. Homebuyers and sellers enjoy a full-service,
technology-powered experience from Redfin real estate agents, while
saving thousands in commissions. Redfin serves more than 80 major
metro areas across the U.S. The company has closed more than $40
billion in home sales through 2016