A seller’s market with low inventory and a plethora of buyers is a great time to sell your home. But keep in mind – while homes tend to sell quicker during a seller’s market, it’s still just as important to get your home market-ready and price it right.
Here is some insight from a few Long & Foster real estate agents about selling your home in a seller’s market.
Taking Advantage of a Seller’s Market
There are many advantages of selling your home in a seller’s market. “Homes that are in good condition typically go fast,” said Lisa Leven Kahn, a real estate agent in Long & Foster’s Haverford, Pennsylvania, office. Because of limited inventory, buyers are much more motivated, which can result in less negotiating and a simpler transaction. Often times, buyers will even waive contingencies and sellers do not need to offer additional perks, such as paying for the closing costs or a home warranty. There are fewer homes for sale, giving buyers less options. A buyer knows that if they don’t buy your home, someone else will, explains Leven Kahn.
Preparing Your Home to Sell
Even in a seller’s market, it is important to prepare your home to sell. Don’t assume your home will sell as is. Instead, get it market-ready by decluttering, cleaning and making any necessary repairs. You should also consider staging your home and obtaining professional photography. “Make a great first impression, rather than having to make an adjustment later because your home isn’t selling,” suggests Margaret Wade, an agent in Long & Foster’s Grove office in Richmond, Virginia. No matter the market, buyers want to make sure they are getting a good home and everything is well taken care of before committing to such a large investment.
Pricing Your Home Right
Don’t make the mistake of pricing too aggressively, recommends Leven Kahn. In a seller’s market, many homeowners want to increase the price of their home, but it is very important to price your home based on its actual value. “Trust the market,” said Wade. “If your home is overpriced, it will sit.” Consider working with a professional real estate agent to evaluate your local market and help determine your home value. “Buyers are much more knowledgeable about the real estate market today, so they might not be willing to pay more than your home is worth,” said Leven Kahn.
Receiving Multiple Offers
While not every home receives multiple offers, even in a seller’s market, be prepared to review and compare bids, so you can make a decision. It is important to look at price, contingencies and timeline. What are the terms? What is the closing date? Is it an all cash offer? What can the buyer do for you as the seller? Frequently, in a seller’s market, buyers are both motivated and flexible, giving sellers the closing date they want, waiving inspection items and increasing the earnest money, explains Wade.
Homes sell based on their condition, price and location. While it may be a seller’s market with low inventory and plenty of buyers in some areas, the market varies per state, city and even neighborhood. If you’re interested in selling your home, consider reaching out to your local real estate agent for assistance.