Selling Your Home in a Seller Market: How to Capitalize on The Sale

by Richard Morrison
August 11, 2016
Sellers
0

If you’re looking to sell your home in today’s market, chances are high that you’re in luck. Much of the country is experiencing a major seller’s market right now, meaning high buyer demand and low housing inventory. For homeowners, this spells an opportunity for top dollar on the sale.

But don’t get too trigger happy just yet. A seller’s market takes some finesse to fully capitalize on. You’ll need a pricing strategy, smart updates, and an experienced agent in your corner.

Here’s your guide to making the most of selling your home in this hot, competitive market.

Table of Contents show

Assess Whether You’re Truly in a Seller’s Market

Before diving in, confirm that your area qualifies as a seller’s market. The signs include:

Low inventory of homes for sale
Homes selling above asking price
Bidding wars breaking out over listings
High demand from buyers

Look at real estate sites to see if local homes are selling within days or weeks, rather than months. Rising prices over time in your area also suggest a seller’s market.

Pick The Right Pricing Strategy & Price Your Home

This is where strategy comes into play. You have a few options:

List at Market Value

Research comps to pinpoint your home’s fair market value based on size, location, condition, and recent sales. Listing at market value positions you to get a solid offer at your home’s true value.

List Slightly Above Market

Some sellers test the waters 5-10% above fair market value, hoping to nab a premium. This works best if you’re not in a rush. Beware of turning off informed buyers or not appraising for your high ask.

List Below Market

List 5-10% under market value to attract buyers fast. This sparks bidding wars in many cases. Just don’t lowball too much or you leave money on the table.

An experienced real estate agent can help determine the sweet spot list price.

Prep & Stage Your Home for Sale

Buyers have high expectations in a seller’s market since options are limited. Make these updates to impress:

Paint walls a neutral color
Do minor kitchen or bath refresh
Replace old carpets
Curb appeal updates like new welcome mat, potted plants, etc.

Also thoroughly clean, declutter, and stage your home. You want buyers to envision themselves living there.

Time Your Listing Strategically

Listing your home at just the right time can lead to a fast, profitable sale:

Avoid holidays and summer vacation season when buyers are distracted.
List on a Thursday or Friday so it’s fresh for the weekend rush.
List first thing in the morning so it’s at the top of searches that day.

Expect Multiple Offers

In a seller’s market, bidding wars are par for the course as buyers compete for limited options. Your agent will help you navigate this process.

Pro tips for fielding multiple offers:

Don’t accept the first offer, wait for more to roll in
Inform buyers of competing offers to encourage higher bids before a deadline
Counter one offer to see if they’ll increase before accepting another offer

Look beyond price when choosing the best offer. Consider:

Cash offer vs financed offer
Downpayment amount
Contingencies that could derail the deal
Flexibility of closing date

Don’t Overlook Appraisal Issues

If you accept an above-market offer contingent on financing, beware of appraisal issues. The home must appraise at purchase price or higher for the buyer to secure a loan.

If the appraisal comes in low, you may need to:

Lower your price to match
Cancel the sale
Challenge the appraisal

Lean on your agent to navigate any appraisal gaps.

Keep in mind that the highest offer is not always the best

When it comes to buying a home, the highest offer is not always the best. While it may seem tempting to offer more than the asking price in a competitive market, there are several factors to consider. Firstly, if you require a mortgage, the lender will only approve a loan up to a certain amount, which could limit your ability to secure the necessary funds.

Additionally, the days on the market and recently sold prices of comparable homes can give you an indication of the property’s value. With prices rising, overpaying for a home may not be a wise financial decision.

Furthermore, cash buyers have an advantage in negotiations and often present a more appealing offer. It’s important to also consider the inspection contingency and do your due diligence to ensure there are no hidden issues with the property.

Partner With a Top Real Estate Agent Who Understands The Market

A seasoned real estate pro is instrumental for selling at top dollar in this market. Don’t just choose any agent – you need one in the top 5% for experience and sales volume.

Top agents have the insider knowledge and negotiating skills to win bidding wars and overcome obstacles like low appraisals. Their expertise can mean tens of thousands more in your pocket at closing.

Be Flexible and Move Quickly

Once you get an acceptable offer, be prepared to move fast. It’s not uncommon for homes to sell within a week or two in a seller’s market.

Have a plan lined up for your next move and be flexible on closing dates. Buyers will prioritize sellers who can close quickly and accommodate their ideal timeline.

Frequently Asked Questions

Q: What is a seller’s market?

A: A seller’s market is a real estate market condition where there’s high demand for housing but a limited supply of available homes for sale. In this market, sellers have the advantage as they typically receive multiple offers and can often sell their homes quickly.

Q: How does market value affect selling in a seller’s market?

A: Market value plays a crucial role in selling a home in a seller’s market. In this competitive market, buyers are willing to pay more for a property, so accurately pricing your home according to its market value can help attract more buyers and potentially result in multiple offers and a higher sale price.

Q: Should I hire a real estate agent when selling in a seller’s market?

A: Yes, hiring a real estate agent who understands the dynamics of a seller’s market can be extremely beneficial. An experienced agent can help you navigate the competitive landscape, determine the best pricing strategy for your home, and negotiate with buyers to secure the highest offer.

Q: How do bidding wars happen in a seller’s market?

A: Bidding wars occur when multiple buyers are interested in a property and submit competing offers, driving up the price. In a seller’s market, where demand exceeds supply, bidding wars are more common as buyers compete to secure their desired home.

Q: What are closing costs and do sellers have to pay them?

A: Closing costs are expenses incurred during the home buying or selling process, such as fees for title search, appraisal, attorney, and taxes. While closing costs are typically the responsibility of the buyer, sellers may also have to pay some closing costs, such as real estate agent commissions.

Q: Is it always the best time to sell in a seller’s market?

A: While a seller’s market generally favors sellers, it’s still important to consider your individual circumstances and market conditions. Factors such as the need for a new home, your financial goals, and the overall real estate market should be taken into account when deciding whether it’s the right time to sell.

Q: Can I rent back my home after selling it in a seller’s market?

A: Yes, it’s possible to negotiate a rent-back arrangement with the buyer after selling your home in a seller’s market. This allows you to stay in the home you just sold for a specified period of time while renting it from the new owner.

Q: How do I determine the best offer in a seller’s market?

A: Evaluating multiple offers in a seller’s market can be challenging. It’s important to consider factors such as the offered price, financing terms, contingencies, and the buyer’s ability to close the deal. Working with an experienced real estate agent can help you determine which offer is the most favorable for your situation.

Q: Is it difficult to sell a home in a seller’s market?

A: Selling a home in a seller’s market can be easier compared to a buyer’s market due to the high demand for properties. However, it’s still important to price your home correctly, present it well, and work with an experienced real estate agent to ensure a successful sale.

Q: How can I attract more buyers in a seller’s market?

A: To attract more buyers in a seller’s market, it’s essential to showcase your home’s best features, stage it to appeal to potential buyers, and have professional photos taken for marketing purposes. Additionally, working with a knowledgeable real estate agent who understands the market can help you implement effective marketing strategies.

Ready to Sell Your Home?

As you can see, a seller’s market presents huge potential for homeowners looking to sell and move on. But you need to play your cards right to walk away with top dollar.

The tips above will set you up for success. If you’re ready to get your home on the market, connect with a top agent in your area to discuss your goals and timeline.

They have the insider knowledge and resources to make your sale smooth and profitable. So what are you waiting for? This seller’s market won’t last forever.

Did you know that according to a survey by Richard Morrison, 89% of homeowners who sell with an experienced agent get a sale price 10% higher than average? Partnering with the right pro pays off big time.

https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/175_2022

https://www.bcrea.bc.ca/advocacy/bcs-home-buyer-rescission-period-your-questions-answered/

Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.

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