What Realtors Should Expect in Today’s Hot Selling Market
There’s no doubt about it: we’re in the midst of what is termed a “seller’s market” in the real estate world. The pandemic has shaken up the way we live and work. In response, home buyers are flocking to the market.
Demand currently exceeds the supply of homes. We know that when these conditions occur, buyers must compete with one another, prices typically rise, homes sell more quickly, and bidding wars can erupt. While this situation can work out well for those selling homes in sought-after areas, a hot market can bring with it certain challenges.
Buyer’s agents know that their clients are at a disadvantage right now. Time is a primary challenge, as desirable homes often sell as soon as they hit the market. In order to compete in a timely fashion, agents might urge clients to take these steps:
- Get pre-approved for a loan, not merely pre-qualified – not only to arrive at a maximum offer amount, but to appeal to sellers who want to make a quick sale
- Examine priorities, and focus accordingly. Now more than ever, buyers must know exactly what they want, so that they can jump on the right opportunity when it presents itself
- Be prepared for a roller coaster ride. Multiple “perfect ones” might come and go before a buyer finally makes an offer that sticks
- Get your clients emotionally prepared to move fast. Delaying even an hour or two can mean a great home slips away
- Watch out for Fear of Missing Out, which can trigger overbidding and severe regret, or worse, later
- Be flexible. With low inventory on the market, consider all options such as buying land and waiting to build, alternative housing options, and more
- Consider location carefully. Even just a few miles can equal a much hotter market and higher prices
Seller’s agents have found themselves in a terrific position. Even so, selling a home for top dollar and with preferred terms is always a priority. Seller’s agents can help clients make the most of a hot market by taking these steps:
- Spruce up the property. Even minor repairs and a full cleaning will make the home show much nicer, making it far more alluring to frenzied buyers
- Attract more attention to a listing by pricing it fairly, even if you expect a bidding war to erupt
- Consider more than just the dollar amounts of bids. Sellers want to reap the most profit possible, but weighing other factors is important, too. This might include a buyer’s pre-approval status, financial capability, and timeline for closing. These factors can help ensure that a contract proceeds to closing day
- Watch out for contingencies in contracts. Sometimes it can be easier to accept a slightly lower bid than to deal with expensive contingencies and frustrating delays
- Harness the power of social media
A hot real estate market brings benefits and drawbacks, depending upon whom you ask. Frustrated clients should be reminded that this situation will pass. Market conditions are cyclical, and these current trends won’t last indefinitely.
In fact, lowering case rates and reopening of the economy could be expected to stabilize things a bit in the future. Those who are eager to sell might be motivated to get it done now, while those feeling discouraged might be better served by waiting for conditions to change.
If complications do occur, contact our real estate attorneys at Larson and Solecki for guidance.