You’ve heard the claims: less than one month’s inventory, homes selling after zero days on the market, homes selling for over 100% of the asking price, an average of five bids on each home, and so on.
However, just because the real estate market is now skewed in favor of sellers does not guarantee that your home will sell as easily and quickly as others. Setting yourself up for success and making your property stand out against the competition requires good planning and a smart approach. Let’s break down what sellers need to do to succeed in this market. I recently talked about tools buyers may use to thrive in this market; now let’s break down what sellers need to do to succeed in this market.
Choose the Right Group
When it comes to selling your property, a good real estate agent is usually the most valuable asset, but it’s much more so in a hot, fast-paced market. They’re the ones who make it possible for you to get the correct information at the right time and steer your house sale in the right direction, whether you want to sell quickly or for a specified price. Don’t be scared to ask questions during an interview. A good agent will act in the same manner.
Knowing your sub market is important since it allows your agent to keep an eye on market activity and affect your home sale approach. They can also advise you on what (if any) changes you should make before putting your product on the market.
Strong local agents may even be able to negotiate an off-market deal. For example, due to coronavirus concerns, my clients and I agreed to pull a home off the market in March of 2020. Del Mar real estate, on the other hand, is still in high demand. I ended up off-market selling the property this spring for 32% more than the offer we received in 2020.
Find Out Everything There Is to Know About the Deal
One of the first things I do with new clients is hosts an offer workshop where we go over the purchase agreement in depth. This is for buyers to rapidly draft an offer with the best terms, but for sellers, it’s more about establishing their aims and priorities as well as their negotiation style. The strategy, time frame, and marketing plan will all be based on this information. Sellers who are prepared and knowledgeable, as well as those who have a specific strategic approach, will feel more organized and, as a result, will naturally attract more purchasers.
Before Putting Your House on the Market, Inspect It
Most house inspections take place when the property is already in escrow, which may seem contradictory. Pre-inspections, on the other hand, can help sellers in a variety of ways. To begin with, it eliminates the element of surprise later on. Once the buyer begins their inquiries, no seller wants a scary or expensive-to-fix problem with the home since it provides them another chance to negotiate for a price adjustment or credit. Knowing about — and perhaps resolving — those concerns ahead of time provides sellers an advantage in negotiations.
When selling a home, the ability to provide inspection reports to potential buyers can also build transparency and camaraderie. They have all of the details upfront, so they know exactly what they’re getting and can expect a seamless escrow. Buyers appreciate any effort made by the sellers since it shows that they care about the property as well.
With Staging, You Can Set Yourself Up for Success
Staging a property may not seem necessary to some sellers, but it makes a tremendous difference when it comes to attracting buyers and making them feel like your home might be theirs. According to a 2017 poll, 62 percent of seller’s agents stated staging shortened the time on the market and 49 percent said it increased the sold price by up to 20%.
Simple changes like removing personal photos can help buyers envision themselves living there, and staging, combined with professional photography, can help your listing shine online, where the majority of buyers will begin their search. It can also help a buyer’s agent get on board with the property because they understand what goes into staging, will appreciate the effort put in, and may even persuade their buyer to choose your home over their competitor’s.
Set a Price for Your Home That Is in Line With Your Objectives
The pricing triangle, as I like to call it, is made up of three main strategies: pricing at, above, or below market value. You’ll be at the lowest, widest section of the triangle, where the percentage of purchasers is highest if you price below market value. The pool of buyers gets less as you proceed up the triangle. You’ll be at the top of the triangle, where the quantity of buyers interested in your home diminishes if you price far over the market.
The best way to establish market worth is to look at comparable properties and market trends, and pricing right around that number is the most typical strategy. This will get you near to fair market value, but there’s always the risk that you’ll need to make a price modification.
While pricing is crucial, timing is just as important, if not more so, and the two are inextricably linked. I don’t recommend pricing beyond market value for people who have a set deadline — moving to start a new job or school, for example — but for sellers who aren’t in a rush, it can be a terrific alternative, especially with prices on the increase in a quickly increasing market.
While pricing below market value may not appeal to many homeowners, it is an excellent method to sell quickly and leverage strong buyer demand to create a bidding battle and drive the price back up. All you need is a real estate professional who knows how to handle many offers.
Having a strong negotiator and experienced agent on your side will always get you closer to your goals and help you take advantage of a market like the one we’re witnessing now, regardless of where you chose to position yourself and your house sale plan.
click here to read 6 key advantages to staging a home for sale.