If you are planning to sell your DeLand home, there is no better time than right now! Currently, we are in what is known as a seller’s market. This means that, as a seller, you are at a greater advantage for quickly selling a home and getting top dollar for it. Here are a few things you need to know about selling a home in a seller’s market.
What Makes a Seller’s Market?
After years of being trapped in a buyer’s market, most of the country has switched to a seller’s market. One reason for the switch to the seller’s side is the COVID-19 pandemic. Many people, especially those in more urban areas, saw this as an opportunity to get out of the city, especially if their work arrangements were expected to shift to remote work permanently.
Another strong reason for the market shifting in the seller’s favor is the low-interest rates that are currently available on mortgages. COVID-19 also had a hand in pushing rates to historic lows. A recent report by Genworth, a provider of mortgage insurance, found an increase of 14% in the number of first-time homebuyers compared to the number from 2019. Lower mortgage rates bring more buyers into the market, and these buyers are hungry because they are now able to afford more than they could previously.
Limited Inventory Leading to Bidding Wars
With more potential buyers and low-interest rates, the demand for homes to purchase is higher than typical. However, there are fewer homes for sale at the moment, thus creating an inventory shortage of homes. Homes are selling quickly and often prompting bidding wars when there are multiple interested buyers.
Once a bidding war ensues, the asking sales price can quickly rise before a seller accepts an offer. A bidding war is usually great for some home sellers and not so great for buyers. But there are some caveats to keep in mind. One issue is that if you price your home too low in hopes of triggering a bidding war and it does not happen, you may be stuck with accepting less than what you might have received if you priced it higher. Fetching a price higher than your asking price is wonderful, but you need to keep in mind that if your home does not appraise for that price, it could be a deal killer.
Your realtor can advise you on the best selling price for your home and how to contend with offers that may go above what your home may be actually appraised at. While this may not be an issue when your home is a cash sale, it could be an issue if your buyer purchases your home with a mortgage. You may need to make a price adjustment to sell your home. But the good news is that because it being a seller’s market, some buyers are willing to waive the difference between the purchase price and appraised price and pay the difference out-of-pocket to secure the sale.
Tips for Selling a Home
As quickly as homes are being sold, new homes are being put on the market. Unfortunately, some need work and are often marketed as unique, meaning they would be difficult to sell regardless of if it were a buyer or seller’s market. While these homes may sell because of a lack of options, it is the nicest homes that will attract the most attention from buyers first.
If you want to quickly attract multiple offers from buyers, you need a stronger strategy than putting a “For Sale” sign up in your front yard and hoping market magic will strike. Here are a few tips that will attract the most buyers and reduce your days on the market.
Staging your home is still one of the best ways to get it noticed and sell it quickly at a premium price. Neutral colors are still in, as well as decluttering in your home and putting away personal items. Staged homes typically sell 73% faster than an empty home.
If you have been watching home listings lately, you might have noticed a trend where many homes are going live with their listings on a Wednesday or Thursday with an open house on that weekend. The reason for this is so that buyers can tour homes over the weekend and make an offer. The hottest homes now will typically have an open house, have 30-50 potential buyers come through, and out of that, you will receive a dozen or more potential offers.
Your realtor will help you compare offers to weed out the best ones. It is important not to look only at a price being offered. There are other factors to consider to determine if the offer is solid and in your best interest. Factors to consider in a potential offer include:
- Whether it is an all-cash offer or if the buyer will need a mortgage and what type
- Whether the buyer is prequalified for a mortgage
- The amount of the buyer’s earnest money deposit
- What the proposed down payment is
- Your seller costs, including whether the buyer proposes you pay some of their closing costs
- Waivers of contingencies (like the sale of the buyer’s current home), appraisal deficiency, or standard buyer inspections
- Unusual allowances or requests
After reviewing all this information with your realtor, you have several options:
- If you received an offer you like, you would accept it
- You can issue a counteroffer to one or more buyers to seek a better price
- Request that all buyers resubmit their best offer
- Increase or decrease your sales price and look for more offers
Be Prepared to Move Fast
Homes are selling so fast that you need to be ready to move. Depending on the strength of an offer, you may need to move out of your home in 30 days. If you haven’t purchased a home already or are waiting for your closing, you need to be prepared with a plan to store your belongings and have a place to live until you can get into your new home.
If you are considering selling your home in DeLand, now is the time to act while the market is hot. Contact Palmetto Realty to get started on your next big move.