2020 was a year filled with a lot of uncertainty for the entire world. From batting a global pandemic to adjusting to new normals of work from home positions to virtual learning, everything seemed to take on a new trend. The same is true for the real estate industry. Home prices went from hitting record lows to now trending in a way that may hit marks of record highs for many states across the country. Coupling the trend in pricing with a shift in mindset for many, people are seeking to purchase homes more than ever before. We are in the middle of a seller’s market and it will be that way for the foreseeable future.
A seller’s market, in simplest terms, is when there are more people seeking to purchase a home versus the amount of homes available for sale on the market. This is the ideal situation for those looking to sell their homes this year.
What makes a seller’s market different?
In a seller’s market, buyers will experience higher home prices, bidding wars due to increased purchase competition, and a quicker than average turnaround on home purchases. Buyers may find themselves scrambling to home viewings and open houses in order to secure their spot in line on the offer train for a home that they love. In some situations, especially in hot cities and neighborhoods, homes could sell within a matter of days (or even hours!) and exceed the asking price by upwards of $50,000. Talk about getting the most bang for your buck as a seller, right? If you’re in the process of selling your home or on the fence on whether or not you should list, now is the time to leap.
As a seller, how do I make top dollar in the current market?
A seller’s market is the best time to sell your home and that time is now. Putting your house on the market this year will ensure you get top dollar for your piece of property, no matter previous value or prior negotiations. Although it’s much easier to sell your home in a seller’s market it takes some expert tips to make sure you get the most of what you have to offer.
Reigning in top dollar is possible if you follow my favorite advice as a seller. Focus on these factors to cash out on top:
- Work with a realtor who is experienced in your specific neighborhood. This may sound like a no-brainer, but the right realtor will help you navigate your market better than anyone else. Choose a realtor who knows the ins and outs of your neighborhood while also understanding who you target buying audience will be and how to attract them to your property. A realtor can make all the difference between you receiving asking price and your hitting top dollar on your property. Do your research, ask friends and family for referrals and interview top contenders before choosing the realtor for you. A strong relationship between you and your realtor makes a world of difference.
- Get your home ready to sell. Again, this may feel like another obvious choice, but showcasing the best of what your home has to offer makes all the difference. Buyers will not bat an eye at minor defects or basic wear and tear, but if there are major discrepancies between the listing and actual home it will raise huge red flags. If you’ve already moved out of your home, consider home staging to set the mood you hope to achieve. This helps buyers visualize themselves in your home more easily. If you are currently residing in the home, clean it from top to bottom, repaint walls and trim that may be subpar and replace flooring, rugs or appliances that have seen better days. Simple and budget friendly fixes can have a huge impact on final profit.
- Aim for Friday. Friday is the best day of the week for many reasons, but, as a home seller, it’s the best day of the week for your listing to hit the market. Plan to hit the market late night Thursday or early morning on Friday so that your home is at the top of buyer’s search listings. Take advantage of home selling sites and social media shares. Include vibrant images of your home along with a virtual tour to really get the most of your search feed location.
- Control the number of showings you allow. People tend to vibrate to things that feel exclusive and out of reach for them. Controlling the number of showings on your home will make buyers feel like it is in high demand and a diamond in the market. It’s okay to tap into some friendly competition by allowing multiple buyers to tour the home at the same time. When you’re more in control of who tours your home and when you are more apt to receive higher quality buyers and offers.
- Aim low to win high. When considering the listing price of your home, aim a little bit below market value to attract more buyers. This tactic will also leave some extra wiggle room for buyers to send in offers above asking price without feeling out of their buying limits. This tactic often brings in offers far above asking as it conditions buyers to believe they are receiving the best deal for your home, even if it’s more than original pricing. If the offers are below your target goal amount you can always counter back with a more reasonable figure for you. Most buyers won’t squawk at a counter offer within sensible limits.
How do I decide what offer to select?
It’s important to sit down with all offers and review them in one fell swoop. Aside from considering just the offering price also review things like:
- Down payment amount
- Percentage of earnest money deposit
- Seller cost requests (HOA fees, closing costs or other)
- Waivers of inspection or contingencies
- Type of offer (full cash, financed or a mix of both)
- Buyer letters
After a full review pick out a couple that hit the mark for you. From there you can decide which buyer you want to purchase your home. Because there are so many factors to consider, you don’t always have to choose the one with the highest bid. If you don’t agree with any of the offers it is completely fair game to counter any part of their offer, including any seller cost requests.
As a home seller in 2021 the market is in your hands in Massachusetts. If you’re considering selling your home, enlist an expert like me to help guide you through every step of the process. I would love to help you get your home ready for selling and achieve top dollar status on your property today. Let’s chat and check off selling your home as part of your 2021 big picture goals.