Tuesday, March 12, 2019 / by Pamela Glende
Today’s market is a strong seller’s market. What does this mean? We have far more people looking to purchase homes than we have homes available for sale. A balanced market is 5.5 months of inventory. Today we have just over a month of inventory. This means that if there is a 1.2 month inventory that if no new homes come on the market we would literally run out of homes to sell in 1.2 months.
What does this mean for sellers? If you are considering selling your home, there is not a better time than now. Most homes that are coming on the market if priced at market value are selling as fast as in one day. However, you should keep your home on the market at least 3-5 days before reviewing offers. Why would I say this? We want your home to be viewed by as many potential home buyers as possible before you accept an offer. If given enough time, multiple offers will come in. This gives me as the agent a chance to ask for the highest and best offer by a certain date and time. This will increase the purchase price of your home therefore, netting you more.
It’s good to put in the agent notes that all offers will be reviewed on a certain date and time. Once two offers come in then I can tell the buyer’s agents that we have multiple offers and ask them to submit their highest and best offer. The more offers that are submitted the better it is for you as the seller. The reason is that most times the offers will be higher than list price.
- Selling your home with a Team of agents verses a single agent.
- What does a realtor do for you? Don’t they just open doors?
Some offers will put extra incentives in their offers to make theirs more appealing to you so that their offer may be chosen. This could be a number of things like a shorter inspection time frame, a waived inspection, a rent back option to help give you more time to move or find a new home, among other incentives. Multiple offers will give you the opportunity to choose the offer that is the best for you and your circumstances.
If we list on a Thursday and don’t review the offers until Monday, it then gives plenty of time for your home to be viewed and for offers to come in. It also gives me time to call the lenders and talk to them about the buyers that have submitted offers. I can find out if they are truly pre-approved. Has the lender looked thoroughly at their employment history, debt to income ratio, have they pulled their credit history, have they reviewed their past 2 years of tax statements and have they looked at the buyer’s assets, etc?
Some lenders give out pre-qualification letters, before truly vetting the buyer. There is a difference between pre-qualified and pre-approved.
We do need to keep in mind that if the offer we accept is too high then we could run into appraisal issues. An appraiser is going to look at comparable homes just as we do when we research other homes that have sold in your neighborhood before coming up with market value.
If we choose an offer that is too high you need to be aware that you may have to lower the purchase price should the home not appraise at value of the offered amount. A bank will only lend on a what the home is valued at.
Sometimes the buyer and seller can meet in the middle especially if the buyer really wants and loves the home. They would need to bring the extra cash to the table above the appraised value. The deal could fall through if they can’t and you won’t lower the purchase price to the appraised value. A good agent will know which offer is the safest and the best.
I’m Pam with Haven Real Estate Group in Spokane. Thank you for reading and let me know if I can be of assistance.
Have an amazing day!!