Check out the next podcast in our series on changes in real estate!
Today Marcia and I discuss why owners of residential properties selling.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Legislative Changes in Real Estate – Part 8
René Nelson: Marcia, let’s talk about the top five reasons that you see someone that would want to sell this year.
Marcia Edwards: Well, the same five reasons that the National Association of Realtors survey reflected, is where I would go. First, your home is no longer meeting your needs, and your needs may have shifted.
So not just life happening, divorces, marriage, births, deaths, but also there’s an element of using the space for home work, work at home, that is to say 60% of the worker force is still working from home, and some of that may not shift back. So you find that you’re among the youngsters in your house, they’re going back to school but you want a separate space for your office, and you don’t have that given the current floor plan, you’ve got other needs that you gotta look at for your adjustment.
René Nelson: You know, I definitely think that shifting back to the office, especially locally in Lane County, I think a lot of people have figured out how to work from home and be productive. So I’m with you, I don’t see a big shift necessarily with everybody migrating back to the office, especially with the summer coming. I think a lot of people are going to try to figure out how to work from home to enjoy time with their kids.
Marcia Edwards: So remodels, ADUs, Auxiliary Dwelling Units, and purchase of properties that fit better is going to be common. Another reason that people plan to sell this year, is a profit that they can make, they can actually make on average 26% more than they made two years ago on their home.
René Nelson: Wow, 26%. I know a lot of people think, “Well, I’ll wait till next year.” But I think that could be a bad bet. What are your thoughts?
Marcia Edwards: Well, I think the heat in this market and the demand that’s there, will not be there next year. I think that the demand will soften. I do not think your prices will take a dive, but if you want to ride the market so to speak, and optimize your return, now would be good, especially if you don’t have to replace that property. If you’re moving into senior living, community living, moving to be closer to family, things like that.
René Nelson: Excellent. Okay. What other reasons?
Marcia Edwards: Well, a smaller house is less work, so some people are getting tired of their space, and that’s not just right now, but this year, it is one of the top five reasons people are choosing to sell, is because they’ve decided they don’t want to put their time and their weekend into the yard, for example.
René Nelson: Wow. That makes sense.
Marcia Edwards: We also want to live closer to friends and family. With COVID that’s been a thing, where you couldn’t travel to go see your parents, it was painful. It’s become painfully obvious that that’s a priority you have to do, execute on when you can take closer to them. The fifth reason is they want different features and amenities, maybe they have put off getting a separate theater room or another room for the TV or things like that that have changed. It’s a great time to decide whether you’re going to make a change for any of these reasons, in the market like this.
If you’d like help understanding the true income value of a property that you’re interested in investing in, schedule a 15-minute discovery call with expert René Nelson today.