This market high has caused some sellers (and agents) to bank on every home selling fast and for more than asking price. And who can blame them? In many cases, they’ll realize success—but some sellers have pushed the limits. Even with home prices up and the market still hot, pairing your home sale hopes with solid market intel will give you realistic expectations when the sign goes in the yard.
1. One Weekend Wonder
Consistent home shortages across the nation have resulted in quick sales in almost every market. While days on market used to reach weeks or months, the expectation now is that a home should be sold in a matter of days. While my personal under contract record is five hours, I always caution my sellers that average time on market for comparable homes in their area is the best guide. The truth is only homes in great locations, in exceptional condition, and at the area's median price point are (hopefully!) going to be under contract in a matter of days. Houses that require extensive renovation or repairs, are listed above the median price point, where competition is less fierce, or have niche features (like historic homes) may linger on the market. Don't panic; it's normal!
2. Seeing Dollar Signs
The old adage "It's only worth what someone is willing to pay for it" springs to mind. Your home may be your perfect oasis but that doesn't determine it's value. Assuming your home is worth far more than the market value is a surefire way to lose out on potential buyers. Buyers, even those that have been looking endlessly, must see value in your home in order to pay top dollar. Try to assess your home from a buyer's perspective in relation to comparable area homes. While over-asking offers seem like they are all but guaranteed, the only way to truly find those offers is by being realistic from the outset.
3. You Get What You Get
If you are selling to an investor, at below market value, you might be able to avoid repairs. But most buyers want a home that they can happily and easily move into next month. Think about the small (or large) items that would make your home seem more put together. Do you door trims need touch up paint? Is your landscaping neat and tidy? Are their scuff marks on the wall? Sometimes, a good deep clean and touchups can be the difference between waiting for an offer and being inundated by them. Buyers that pay a premium to purchase the house won't also want to spend a premium on renovating it, so consider how you can make your house move-in ready before it hits the market.
4. As-Is or Bust
Selling your home as-is can seem like an attractive option, especially if you are on a deadline to get your home sold. When a home is as-is, the buyer agrees that they will not ask the seller for repairs, potentially saving the seller time and money, and eliminating a potential negotiation pitfall. The truth: as-is homes are often an immediate red flag to buyers. They assume (often rightly so) that the house has some serious issues that the seller won't address. Even in a competitive market, buyers still want to know they are purchasing a solid home and a wise investment. Starting off with major repairs can be a deal breaker. Though selling as-is has potential perks, for homes without major concerns, it often is not in the seller's best interest to list their home as-is.
TIP: If you want to eliminate the unknown of repair costs after inspections, ask your agent to negotiate a inspection repair cap before accepting the offer. The buyer agrees to ask for no more than a preset dollar amount in repairs, so you know exactly what to expect.
5. How Hard Can It Be?
Perhaps you might have experience flipping homes, or your law degree gives you the assurance to handle such a major transaction on your own (I get it; I'm a lawyer!). As a lawyer and a Realtor, I understand the unique advantages that each bring to the table. Though avoiding paying a commission to a listing agent may seem ideal, the truth is selling homes is not as simple as posting online and watching buyers stream in. For starters, most buyers are working with an agent. Those agents provide access to the professional multiple listing service to conduct home searches. Further, those agents are actively scrubbing those results to ensure they find the best options for their client. Without that visibility, your home is likely to sit for a while, even if you have amazing pictures posted online. You’ll probably end up selling your home for less because fewer people will see it. Those that do may not want the hassle of trying to work with a homeowner rather than another agent who knows the ropes. Commissions are a small price to pay to ensure your home sells.
TIP: It's never to late to start working with an agent. If you have tried listing your home on your own, and haven't gained any traction, don't wait. Working with an agent now will get you moving sooner.
6. Finding a New House Will Be Easy
No one wants to buy a house just because they need one, especially if they've just sold their house. I've been there. Looking for a house on a time crunch, especially in a competitive market, is so stressful. Many sellers want to take the profit from the sale of their home and roll it into their next purchase. Remember all those buyers who were clamoring for your beautiful, well-priced home? Now, you're one of them. You'll have to thoughtfully consider your needs and wants, and what you'll offer to get them, as you start your house hunt. Working with an experienced agent can help you develop a strategic plan for tackling the home buying process, even when you're in a hurry.
If you're looking for a strategic plan to maximize your selling and purchasing power, I would love to chat!