Friday, November 22, 2019 / by Jo Skipper
Selling Your Home in a Hot Market
If you are in the market to buy or sell a home in the Spokane area or anywhere in the (Inland) Pacific Northwest then you are aware that we are in a seller’s market. Most people are under the impression that they can list their home for top dollar without making any repairs. We have all heard the stories about homes have offers 40k above asking the first day it was listed. While that may be true for some homes, it can lead to headaches for buyers and sellers alike. As a seller you need to be realistic with your sales goals and protect against the downside of a seller’s market.
Let the professionals do their work. Many sellers think that in this hot market the home will sell itself. Why do you need to pay a commission if the house will sell anyway? Do you really know how to navigate the home sale process? Can you arrange professional photography and market a home properly to get in front of any many buyers and arrange the showings? This is difficult to navigate and you aren’t even to the contract yet. Don’t shy away from the professionals to do what they know best.
Be prepared for a low appraisal. This is felt like a punch to the gut for most sellers. When the appraisal comes back in low you are faced with a hard decision. Do you lower your price or put it back on the market? Most buyers will not have the cash to pay the difference between the appraisal value and the listing price. When prices increase in a hot market the appraisal values have a hard time keeping up with this value.
Do not be unrealistic with your goals. We all know the stories of people who have made an insane amount of money on their home sale. Every situation is different. If you list your home for an escalated amount of money you do run the risk of turning away most buyers. Those in the market for a new home can view listings and make comparisons online. If your home does not match the price then you can do more harm than good. Your real estate professional can help guide you with a price that will help you achieve your goals in the home sale.
A fast moving seller’s market can have negative consequences for both buyers and sellers alike. A seller’s market can be appealing for some in the market to list their homes at unreasonable prices or be unprepared for the upcoming negotiations. A trusted Realtor can help guide you through this process to keep your stress to a minimum and still achieve your goals.