The demand is high; the supply is not. In a seller’s market, there are more people looking for homes than there are sellers which causes the home buying process to move faster than usual. Potential homebuyers are eager to get their offers in, and even more eager to avoid having their offer countered or competing with others. So, this puts selling agents in the power seat. However, that doesn’t mean the selling process will be foolproof. In order to prevail in today’s seller’s market, it’s imperative to avoid making these five common mistakes.
Listing A Home Too High
Listing a home at the appropriate price is key to the sale of any property. However, this is even more crucial when it’s a seller’s market. While this is true to some extent, pricing too high can jeopardize the sale.
In order to accurately price a home in a seller’s market, you must do research on local real estate. The price trends in one community will not reflect the price trends in another, let alone in another state. So, always conduct thorough research of homes for sale in the same area and analyze the real estate prior to choosing a listing price.
Acting too Quickly
As a seller in a seller’s market, you have the most power. An abundance of offers are coming in and your clients have the luxury of waiting for the right one. However, a common mistake people make during a seller’s market is acting too quickly once they receive a decent offer. While it’s imperative to avoid hesitation when making a decision, it’s just as important for the sellers to give their home time to receive more quality offers.
The best way to prevent this from occurring is to inform your clients of the pros and cons of a seller’s market, and how they can maximize their ROI.
Waiting Too Long
On the opposite side of the spectrum, it’s important to avoid waiting too long. Although there may be a long list of interested homebuyers placing offers on the home for sale, waiting too long could result in a loss of sale. The longer you wait to accept an offer, the more time potential homebuyers have to explore other opportunities. So, create a strategic plan to evaluate the situation, the seller’s market for the area, and the offers coming in to formulate a proper waiting time.
Rejecting a Good Early Offer
Rejecting a good early offer is a common mistake real estate agents see during a seller’s market. Many sellers reject early offers with the assumption that they’ll get bigger and better offers down the road. This is not always the case. Rejecting a good early offer can result in no future offers. So, it’s imperative to evaluate every offer as is and not in comparison with how long the home has been listed.
Not Being Ready to Show the Home
In a seller’s market, people are eager to get their home listing on the market. However, what many of them don’t realize is that, if the listing price is appropriate, potential homebuyers may want to see the house immediately. This is great news until the homeowners realize repairs need to be done, curb appeal needs to be perfected, walls need to be painted, and ultimately, the house is not ready to be shown.
In order to capitalize on a seller’s market, a home should only be listed once it’s ready to show. Home repairs need to be completed, the interior needs to be cleaned and staged, and the yard needs to be pristine. Otherwise, you run the risk of turning down potential homebuyers simply because the home wasn’t ready to show.
Capitalize on a seller’s market by avoiding these five common mistakes. A high demand with low supply doesn’t confirm a sale.