Post by Daniel Maurer
The real estate market is always fluctuating, and in a seller's market, homeowners have the upper hand. With limited inventory and high demand, sellers can often command top dollar for their homes. However, even in a seller's market there are common mistakes that homeowners make that can sabotage their home sale. In this blog post, we'll explore the five biggest mistakes that homeowners make in a seller's market.
One of the most common mistakes that homeowners make in a seller's market is overpricing their home. When there is high demand for homes, sellers may be tempted to set an unreasonably high asking price, hoping to get top dollar. However, overpricing can lead to fewer showings and ultimately, a longer time on the market. There is a mountain of evidence that shows an overpriced house actually often sells for less, or at best, the same amount a sa well-priced home. In reality, if your home is valued at $1,000,000 and you list at $1,100,000, you may sit on the market for weeks, have a price reduction and a month later sell for $1,025,000. If you priced at its actual value in a market like ours, you would likely have multiple offers over asking price and end up at the same $1,025,000 (or higher) in a weekend, instead of a month. Time is valuable so it’s good to maximize value and sell as quickly as possible.
Another mistake that homeowners make in a seller's market is not staging their home. Staging is the process of arranging furniture and decor to showcase a home's best features and create an inviting atmosphere. I na hot market, it can be tempting to skip this step, assuming that the home will sell quickly regardless of how it looks. However, staging can make asignificant difference in the speed and price of a home sale.
ASSUMING THAT ALL REALTORS ARE THE SAME
When it comes to selling a home, not all real estate Brokers are created equal. There are many important areas your agent must be an expert, including deep industry and local market knowledge, marketing tactics, and exceptional communication skills. Most importantly however, it’s important to remember that selling a home can be a very emotional and stressful process. Often you're not just selling a house; you're selling a home that may hold years of memories and sentimental value. A good broker will understand this and will be able to guide you through the process with compassion and empathy. Buying and selling real estate is stressful and it’s a 24/7 career. Find someone that is fully dedicated to the industry and available when you need them.
TAKING CASH OVER WELL-FINANCED BETTER OFFERS
In a seller's market, it's not uncommon for buyers to make cash offers, hoping to entice sellers with a quick and easy transaction. While a cash offer can be appealing, it's important for homeowners to remember that a well-qualified buyers, using a well-known bank will likely have no problem closing on time, so if the financed offer is better than the cash offer, you would be wise to consider it. There are times however, when a cash offer has clear advantages, like if the sale price is beyond the homes actual value. Cash takes a bank appraisal out of the equation, and can be useful in situations like this.
NOT BEING FLEXIBLE WITH SHOWINGS
Finally, homeowners in a seller's market may be tempted to be rigid when it comes to scheduling showings. While it's understandable to want to keep disruptions to a minimum, it's important to be flexible and accommodate potential buyers as much as possible. In a hot market, buyers maybe juggling multiple properties and schedules, so making a home accessible for showings can increase the likelihood of a quick sale.
These are only a few important items to consider when selling in a hot seller’s market. To learn more or to discuss a possible move, please contact me. My door is always open!
If you are looking for some advice on a real estate transaction, my door is always open