Selling a Home in a Seller’s Market
In a seller’s market, there are more buyers shopping for homes than homes for sale. This generally means that sellers have more negotiating power and can receive the best offer possible. As you might have guessed, it’s best to sell your home when inventory is low and eager buyers are driving prices up, but there are also some things you’ll want to prepare for.
Selling Your Home Quickly
In a seller’s market, the home selling process can move extremely quickly, especially if your home is well-priced. Because of the increased competition, buyers want to move quickly to put in an offer on the homes they like. Waiting to put in an offer could mean that the home they love is snatched up by another buyer, so they make decisions about homes quickly.
Multiple Offers are Possible
The strong competition amongst home buyers means that if multiple buyers are looking at homes in your area, you may receive multiple offers. Multiple offers can drive up the sale price of your home as well as concessions from the buyer that meet your needs and goals, like an extended move-out period.
Issues with Appraisals
In a hot seller’s market, appraisers may not be able to complete an appraisal that properly represents what your home is worth in the current market. Appraisers might be comparing your property to properties sold a year ago or more — sales which will likely be for a lot less than your current offer. If a property doesn’t appraise for the offer price, the buyer will have a lot of difficulty getting a loan for the current offer price. You might be forced to lower your sales price or seek out buyers who are paying cash and do not need the approval of an appraiser to complete the deal.
Often in a strong market, a buyer may try to expedite the loan process. Promising things the lender cannot deliver due to other factors such as appraisal delays, three-day TRID rule, survey delays, and delays getting title work back. Be patient and understand the buyer wants to close on your house as quickly as possible but is usually at the mercy of the loan and title company.
If you have questions about buying or selling a home or you simply need help understanding the current real estate market, contact the David Morris Group. We’re happy to be your guide. Give us a call at (775) 828-3292.