Here’s the truth about what it means to be a seller in this red-hot market.
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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 way over asking price, and sellers are getting excellent terms and conditions. Things are a little crazy out there, but what does it actually mean to be in a hyper-seller’s market where demand greatly outweighs supply? Here are four widespread misconceptions about our seller’s market that you need to be aware of before you list your home:
1. You need a plan for your next home before listing your current one. I believe this notion is stopping many folks from putting their homes on the market. While it’s natural to be concerned about what comes next, it’s important to realize that sellers have the ability to set incredibly favorable terms right now that make transitioning to a new home much smoother. For example, they could opt for a long leaseback of up to 120 days rent-free.
"Overpriced homes tend to sit on the market for much longer than usual and often sell for less. "
2. Your home’s condition doesn’t matter. This may be true in certain price ranges, as condition always drives price. When I meet with clients to discuss listing their properties, I always walk through their homes and give them staging tips and advice on repairs. Sometimes it makes sense to sell as is, and other times it doesn’t. Make sure you speak with a Realtor who has their finger on the pulse of your local market before making a decision.
3. You can price your home above the market. Buyers are very concerned about overpaying for a home. If you set the list price too high, the more fatigued buyers who have been in the market for a while will be hesitant to make an offer. Overpriced homes tend to sit on the market for much longer than usual and often sell for less than they would have if they had just been priced correctly from the jump. Ask your Realtor to help you set up an appropriate pricing strategy.
4. You don’t need a Realtor to sell your home. There’s never been a greater temptation to sell FSBO and maximize profits. However, that doesn’t always work. If the property you put on our market isn’t priced, staged, or marketed correctly, you won’t get an outcome proportional to the time, money, and energy that you put into that transaction. The last few listings I’ve sold generated upwards of 50 offers in a single week; it’s very difficult to sort through those offers and navigate the transaction from contract all the way to closing and beyond if you’re doing it by yourself. There are so many hurdles to jump through, and it really helps to have an experienced professional by your side.
Hopefully, you have a better understanding of what it means to be a seller in this kind of market. If you have further questions about this or any other real estate topic, don’t hesitate to give me a call or send an email. I’d love to hear from you soon!
