sellers market 2021 | David Morris Group

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.

Closing Delays

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.

The real estate market continues to change, but the last year has brought unforeseen highs and lows to the Reno market. The current seller’s market may add new challenges and obstacles for buyers and new opportunities for sellers. Let’s take a look at the current market and how to navigate it.

Record Low Supply

Inventory levels normally hover at a couple of months, but these days, inventory levels are hovering at a few weeks. Fewer homes are on the market has highlighted the shortage of homes in Northern Nevada and the nation. The recession brought the home building industry close to a stand-still, limiting the houses on the market.

High Demand

That low supply level is being matched by a high demand. With more people working from home, the pandemic highlighting new wants and needs in a home, and low interest rates, more buyers are searching for homes. We’re seeing more people looking to relocate to Nevada to take advantage of the tax benefits, beautiful weather, great employment opportunities, and variety of amenities that Reno has to offer.

More Refinancing

Record low interest rates have incentivized potential sellers to stay in their current homes and refinance their mortgages to capitalize on those low interest rates.

Navigating the Market

The hot market means that it’s more important for buyers to be prepared. Buyers should:

Get prequalified. You need to know how much house you can afford to buy before you start looking.
Make a strong offer. If you come in with an offer below asking price, it’s likely you’ll be outbid, and your offer won’t be considered.
Have extra cash ready. Homes are going above asking price and above appraisal values. Having the money to cover the difference is imperative to getting to the closing.
Hire a real estate professional who has the necessary experience and negotiation skills to advocate on your behalf in a challenging market. You must have someone who knows this market and knows how to structure an attractive offer that has the best chance of being accepted by a seller in a multiple offer situation.

The hot market also means that it’s a great time for sellers to capitalize on the market. Sellers should:

Be prepared for multiple offers. It’s likely that your home will create a bidding war amongst buyers.
Review each bid with your agent to determine which one is the best fit.
Move quickly. Some buyers prefer a quick closing, so be prepared for things to move quickly after accepting an offer and closing on a home.

The seller’s market is moving quickly, and if you need help navigating the hot Reno market, contact the David Morris Group. We’re here to offer our expertise, and we’ll be by your side every step of the way–give us a call at 775.828.3292.

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Selling a Home in a Seller’s Market