3 Key Traits of a Seller’s Market

For home sellers, a seller’s market is ideal. Ultimately, this type of housing market empowers home sellers to maximize the value of their residences, and for good reason.

Typically, a seller’s market is defined by several key traits, including:

1. Shortage of Quality Houses

A seller’s market often features a shortage of quality houses, which means many home sellers frequently are able to set higher initial asking prices for their residences that they would in a buyer’s market.

Although a seller’s market may enable home sellers to get more for their houses, a home seller still must find ways to generate interest from prospective homebuyers.

For example, a home seller who revamps his or her home’s exterior will be able to boost the residence’s curb appeal. As a result, this home may generate greater interest from homebuyers than other residences that are on the market, increasing the chance of a quick home sale.

2. Abundance of Homebuyers

A seller’s market may feature an abundance of homebuyers who are ready to make their homeownership dreams come true. As such, a home seller may receive offers as soon as his or her residence becomes available. And in some instances, a home seller might even get multiple offers that exceed his or her initial asking price.

Oftentimes, a seller’s market provides increased confidence to home sellers. Conversely, it is important to establish realistic home selling expectations, regardless of the market conditions.

For instance, a home seller who prices his or her residence too high from the get-go is unlikely to generate significant interest – even in a seller’s market. Thus, this home may remain on the market for many days, weeks or months, and a home seller might need to lower the price eventually.

On the other hand, offering a competitive price, i.e. a price that corresponds to the prices of similar houses in a particular area, is ideal. If you provide a competitive price on your home from day one, you should have no trouble receiving plenty of interest in it, especially in a seller’s market.

3. Consistent Supply of Dependable Real Estate Agents

Real estate agents are happy to help home sellers maximize the value of their residences in a seller’s market. These real estate professionals may possess many years of industry experience, which means that they likely understand the ups and downs of the real estate sector. Therefore, real estate agents can offer practical tips to ensure that you can stir up substantial interest in your home, get the most for your house and accelerate the home selling journey.

Perhaps best of all, your real estate agent will be happy to respond to any concerns or questions as you add your home to the housing market. This real estate professional works for you and will do everything possible to ensure you get the best results.

Ready to add your home to the real estate market? Employ a real estate professional, and you can move one step closer to optimizing the value of your house.

Home Seller Tips: 3 Reasons to Decline the First Offer on a House

As a home seller, receiving the first offer on your residence can be an exciting experience. However, the initial offer on your home may prove to be insufficient for a number of reasons, including:

1. The offer fails to meet your expectations.

Ideally, a home seller will allocate the necessary time and resources to fully analyze a house before adding it to the real estate market. This will enable a home seller to establish realistic expectations for his or her house and price it accordingly.

Conducting a home appraisal offers a great starting point for a home seller to determine the true value of a residence. This appraisal ensures a home inspector will examine a residence’s interior and exterior. Then, the inspector will provide a report that details a house’s strengths and weaknesses.

With a home appraisal report in hand, a home seller should have no trouble establishing a “fair” price for his or her residence. And if an initial offer falls short of this price, a home seller can politely decline the proposal and wait for additional offers.

2. The homebuyer has submitted a “lowball” proposal.

In some instances, a homebuyer may submit a “lowball” offer in the hopes of acquiring a terrific house at a budget-friendly price. If a home seller cannot differentiate between a reasonable offer and a lowball proposal, he or she risks missing out on an opportunity to optimize the value of a residence.

An informed home seller should examine the prices of available houses that are similar to his or her own. By doing so, this property seller can see how his or her residence stacks up against the competition and map out the home selling journey accordingly.

Moreover, an informed home seller will mow the front lawn, trim the hedges and do whatever it takes to enhance a house’s curb appeal. This home seller likely understands the importance of making a positive first impression on homebuyers, and as a result, will perform assorted home exterior improvements to help reduce the risk of receiving a lowball initial offer.

3. The offer does not correspond to the current state of the housing market.

For a home seller, it is essential to work with a real estate agent who can provide full details about the current state of the housing market.

A real estate agent can help a home seller differentiate between a buyer’s market and a seller’s market. Plus, this housing market professional can provide honest, unbiased recommendations about whether a home seller should decline an initial offer on a home.

Many real estate agents are available in cities and towns nationwide, and these housing market experts are happy to help home sellers in any way they can. If you employ a real estate agent before you list your home, you can reap the benefits of unparalleled guidance at each stage of the home selling journey.

There is no reason to settle for a subpar initial offer on your residence. Instead, consider a first offer closely, and you can make an informed decision about whether to decline or accept it.

What Is the Ideal Initial House Asking Price?

As you get ready to add your house to the real estate market, you likely will consider high and low initial asking prices. However, it is important to remember that no two residences are exactly alike. And much in the same vein, the initial asking price for your home may vary from that of a similar residence based on your house’s condition, age and other factors.

Ultimately, a diligent home seller will allocate the necessary time and resources to determine a competitive initial asking price for his or her residence. This seller will be able to establish an initial home asking price that hits the mark with buyers, and as a result, stir up plenty of interest in his or her house.

Determining the ideal initial home asking price may seem tough at first. Fortunately, we’re here to help you set a competitive price for your residence, regardless of the current housing market’s conditions.

Now, let’s take a look at three tips to help you establish the ideal initial asking price for your residence.

1. Assess Your Home

The present condition of your house may have a major impact on its value. Thus, you should perform a home inspection before you list your house to identify any underlying problems and address such issues.

A home inspection is generally requested by a buyer after a seller accepts an offer on a residence. Conversely, a seller who wants to go above and beyond the call of duty may perform an inspection to take a proactive approach to home improvement projects. This approach may help a seller mitigate potential home problems before they are discovered later in the home selling process.

Thanks to a home inspection, a seller can establish home improvement priorities. Then, this seller can perform myriad home improvements and move closer to maximizing the value of his or her residence.

2. Evaluate the Housing Market

Operating in a seller’s market is far different from selling a house in a buyer’s market. If you review the real estate market, you can gain the insights you need to establish a competitive price for your home.

Take a look at the prices of houses in your area that are similar to your own residence. This information will enable you to understand the price range for comparable houses in your city or town.

Also, evaluate the prices of recently sold residences in your area. This housing sector data will allow you to determine whether you are operating in a buyer’s or seller’s market.

3. Collaborate with a Real Estate Agent

A real estate agent knows the ins and outs of selling a home in any housing market. He or she can offer a wide assortment of housing market data. Perhaps most important, a real estate agent will make it simple for you to establish a competitive price for your residence and reap the benefits of a fast, profitable home selling experience.

Want to add your house to the real estate market? Use the aforementioned tips, and you should have no trouble setting a competitive initial asking price for your house.

When Should You Reduce The Price Of Your Home?

Once you put your home on the market for sale, you’ll have some decisions to make including the real estate agency that will list the home. One of the most important things about selling your home is finding the right price to sell the home at. You’d like to make  a return on your investment. On the other hand, if time is a factor in your move, you may need to be even more strategic about pricing. 

At some point, once the home has been on the market for a certain period of time, you’ll need to think of reducing the price of the home. 

Work With Your Realtor

You may not know the perfect time to reduce the price of your home, but your realtor does. As a seller, you may not be too happy about lowering the price of the home at all. Depending on the state of the real estate market, your realtor will make the right suggestions to do what they can in order to sell your home. Sometimes this includes a price reduction to make both buyers and sellers happy. 

Marketing Is Everything

Before the price is even reduced, you may need to take a look at how the home is being marketed. There’s so many pieces of the puzzle that come in when a home is being marketed. 

The home is listed in the MLS by your realtor, but is it getting hits? Have open houses been held to further advertise the home? Are the pictures of the home representative of the property and good quality? Is adequate “for sale” signage present? Is your realtor available for showing the home privately? 

These are all important things to think about when it comes to marketing the home. Your realtor is well-versed in all of these areas. The important thing for you as a seller is to be aware of just how many different avenues are available for you to get the word out about the home.

Can You Wait To Sell?

If you’re not moving due to a job change or a life transition that’s urgent, you may be better off waiting to sell the home. If the market is slow or happens to favor buyers heavily, you may want to wait and take your home off of the market for a bit. One of the most important things that you can do as a seller is to go with the flow of the market that you’re in.          

                  

Find The Right Number

When you price your home too high, you’ll need to keep lowering the price until you find the price that’s “just right.” When you use this approach, your house will sit on the market for a long time. This will be worse for you as a seller in the long run. Buyers will wonder why your home has been on the market for so long. Is there something wrong with the home? Will the price continue to drop? Really, interest will continue to wane from your home using this strategy. At this point you may just need to take the house off of the market.

In a perfect world, you only want to have to drop the price of your home once. Work with your realtor to find that sweet spot for pricing and you’ll be happy selling your home to satisfied buyers.