If you’ve been listening to the news, you’ll have heard that we’re in a red-hot seller’s market. Homes are selling for way over asking price, sellers are getting excellent terms and conditions, and things are getting a little crazy. But if you’re a seller, what does being in a hyper-seller’s market where demand greatly outweighs supply actually mean? Today I’ll share four common misconceptions about a strong seller’s market that you need to know before you list your home.
1. You need a plan for your next home before listing your current one. This misconception, I believe, is what’s stopping many people from putting their homes on the market. They’re concerned about what comes next. One great thing about being in a hyper-seller’s market is that many sellers have the ability to set very favorable terms that make transitioning to their next home much smoother, like a short closing date or a long leaseback. Many of my clients have been able to close on their current homes very quickly and then stay in them for up to 60 days, sometimes even rent-free, which gives them time to find a new home and make a move on it.
2. Your home’s condition doesn’t matter. Many think that in a market like ours, a home’s condition doesn’t matter and that no matter what it looks like, it will sell if you put it on the market. While that may be true in certain price ranges, the condition always drives the price. When I meet with my clients about listing their homes, I always take them through the house room by room and give them staging tips and advice about repairs and updates so they can get the absolute most money for their home in the shortest amount of time. Sometimes it makes sense to sell a home as is, and sometimes it doesn’t. Before you start doing home improvements on your own, speak with a Realtor who is knowledgeable about the current market and what things are important to buyers.
3. You can price your home above the market. In our market, it’s very important to set the asking price appropriately. Buyers are very concerned about overpaying for a home. If you set the list price too high in the beginning, buyers who are fatigued from being in the market for a while will be hesitant to make an offer on your home. Overpriced homes tend to sit on the market for much longer than usual and often sell for less than they would have if they’d just been priced correctly in the first place. Go through the numbers with your Realtor and ask them to help you set up an appropriate starting price.
4. You don’t need a Realtor to sell your home. There is a temptation to sell a home For Sale By Owner in order to save money and maximize profits. However, that doesn’t always work. In our market, homes will sell when you put them on the market, but if they’re not priced, staged, or marketed correctly, you won’t get an outcome proportional to all the time, money, and energy you put into the transaction. The last few listings I’ve sold had upwards of 50 showings in a single weekend, and they’ve received multiple offers. It’s very difficult to navigate all those offers and take a transaction from contract to close if you don’t know what you’re doing. There are so many hurdles to jump in a transaction that it really helps to have an experienced professional at your side.
If you have any questions about our hyper-seller’s market or selling your home, don’t hesitate to reach out to us. We’d love to chat with you.