Like most things in 2020, the current real estate market is nothing like the experts had predicted at the beginning of the year. The pandemic has affected the way the real estate market is operating, and for many homeowners around the country, it has created an ideal scenario to sell. Rates are at all-time historic lows, even lower than they already were, causing buyers to want to act now. Many areas of the country were already experiencing low inventory and the pandemic has exasperated that further. Here are some tips on how to navigate a seller's market and get the most out of your house.
Get Your House Ready to List
Although you are listing in a seller's market, properly preparing your home for the real estate market is paramount. This means thoroughly cleaning and decluttering home, applying a fresh coat of paint where needed, and staging the home tastefully.
Price It Right
A common mistake sellers make when they are selling in an advantageous market is pricing their house too high. Allow your REALTOR to perform a comparative market analysis and follow their guidance on pricing as they the market and what a buyer may be willing to pay for a home. Setting the price too high will lead to extended time on the market, which usually results in a lower net profit. Pricing at fair market value will create a buzz within potential buyers. They will know that your house is priced competitively and it will create an urgency for them to put in a competitive offer. This will lead to multiple offers, and ultimately a higher sales price.
Carefully Review Offers
It is not uncommon to receive multiple offers in a seller's market. Reviewing each offer and deciding which one to go under contract with can be stressful. It is a good problem to have and one that can be navigated with the guidance of your real estate agent. Here are some things to remember while looking at offers:
- The highest sales price does not always mean the highest net profit.
- Price isn't everything; consider which offer is the strongest with the least number of contingencies and with solid financing.
- You can still counteroffer. If you want to go with a buyer who is putting more money down and seems to have better financing offers, but they don't have the highest sales price, considering countering.
Selling your home when there is low inventory and a high buyer demand makes the process move along at a rapid pace. Make arrangements to be out of your home for numerous showings during those first few days on the market. Be prepared to spend time considering multiple reviews. Make sure you are ready to move in as little as four weeks from listing your house. Have your plans for where you are going next because although selling your house may not be a challenge, you'll need your next living arrangements lined up.
Selling your home in a hot market does not have to be tumultuous and chaotic. Rely on the guidance and expertise of your real estate professionals. Take advantage of this strong seller's market and achieve your real estate goals.