How to sell your home in a hot sellers’ market.
What are the characteristics of a Sellers’ Market?
A “Sellers’ Market” trend is driven by
* a lack of supply of available homes for sale
* strong buyer demand for homes
* low home loan interest rates
The supply metric is 3 months or less of available homes for sale
based on closed sales activity. As an example, you divide the number of homes for sale by the number of homes sold in one month to determine the number of months of supply.
Another characteristic is the average Days on Market metric. If the average Days on Market is less than 30 days, this is another indicator of a Sellers’ market.
The List Price to Sold Price ratio is another indicator of a Seller’s Market.
Homes consistently sell quickly and above the List Price in a Seller’s Market.
How long will this trend last?
Most likely through the first half of this year
and possibly through the remainder of 2021. Beyond then requires a crystal ball.
What is the formula for selling a home above the list price?
Preparation, Presentation and Pricing.
Obtain property inspection reports. Complete recommended repairs related to systems operation such as appliances, mechanical components, and safety hazards.
All Sellers want an AS-IS sale and most Sellers would love to avoid making repairs or repair concessions.
When you are selling in a Sellers’ Market, provide buyers with a Disclosure Package in advance of accepting an offer.
The Disclosure Package includes property inspection reports and the required property disclosures completed by the Seller. The Disclosure Package creates transparency and provides useful information for a buyer to confirm the existing condition of the property.
In many cases, the Buyer is more willing to accept a home in AS-IS condition
if the Seller has provided accurate and qualified information about the condition of the home.
Include this provision with a purchase agreement:
“Any inspections performed by the Buyer are for information purposes only. There shall be no Seller repair concessions”
This provision emphasizes your intent and confirms the AS-IS nature of the purchase agreement with the buyer.
Obtain a proposal from a professional home staging company.
The proposal should include recommendations for interior and exterior paint colors, landscaping, light fixtures, flooring, plumbing fixtures, and cabinet hardware.
Beware of Realtors who “self-stage” homes. Hire a professional with liability and workman’s comp insurance and controls their own inventory of staging furniture and accessories.
Follow the recommendations of the staging proposal to update your home.
Then have your home professionally cleaned including windows and tune up your landscaping.
Enhance the Presentation of the home for sale.
Hire a professional photographer and videographer to capture the essence of your home. Home buyers scan for homes online and your home must present well
with a high level of emotional appeal or most buyers will not make the effort to visit your home.
No showings equal no sale.
Price your home strategically.
Review recent Sold Properties that are nearby and “like-kind” in size, location, and condition characteristics. This data will set the current “fair market value” of your home.
Review Pending Properties of similar homes that recently went into escrow.
Focus on the List Price of these properties to provide insight of the price point that attracted buyers to make an offer.
Review Active Properties currently for sale in your targeted price range.
Determine how well your home will compete with homes priced 10 percent above and 10 percent below your target List Price.
Buyers base their decision to buy a home driven by its emotional appeal and supported by a perception of fair market value of the List Price when compared to other available homes for sale with similar qualities.
Create a condition for buyer competition to get the highest possible sales price.
Set an Offer Date to review purchase offers 7 to 10 days from your MLS debut date. The offer date strategy ensures that all buyers currently in the market will have a chance to view and bid to purchase your home. It sets the stage for multiple offers with offer prices above your List Price.
One of the best tools to use when you have more than one offer is the Seller Multiple Counter Offer.
If the Seller receives more than one offer, the Seller has the option of responding to more than one offer using a Seller Multiple Counteroffer.
The Multiple Counter Offer has a provision that requires the Seller to sign the Counteroffer one more time after the Seller receives the Counter Offer signed by a Buyer.
This allow a Seller to negotiate with more than one Buyer at the same time without being obligated to sell until one of the multiple counter offers is signed one more time after it is signed and accepted by a Buyer
The most important items to be included from a buyer with an offer:
Some must have items in a loan pre-approval letter:
The most valuable attribute to look for when hiring a Realtor to represent you: Hire a skilled negotiator. Your Realtor should have a proven track record.
We have been selling homes in your area since 1985 with over 1000 successful sales. There is no substitute for contract negotiation experience.
Hire us to win with us!
Leslie Whitney & Pete Sabine.
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