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The decision to sell your home involves a variety of factors, but perhaps the most important is timing. One of the best times to receive a rewarding offer is during a seller’s market.
With the help of an expert REALTOR®, you can assess your current situation, consider the benefits of selling your home in a promising market, and position your listing to maximize its value.
A seller’s market occurs when there are more buyers than homes for sale. The resulting competition by buyers, if sustained over time, increases the sales prices and resulting home values. This may be advantageous to sellers because it may give them more power to negotiate with potential buyers. Owners who list a home in a seller’s market increase the likelihood of attractive offers or possibly multiple offers at or above list price.
Consider these housing market metrics within the Memphis-metro area:
Memphis’ home sale prices have increased by 33% in the last five years (Federal Housing Finance Agency).
The average home price in Memphis has jumped from $168,000 to $178,000 year-over-year (Commercial Appeal).
Nationally, purchases of existing homes have increased by 9% compared to one year ago (Associated Press). That, compared with record-low mortgage rates, means sellers are looking to purchase.
The market currently favors the seller. Should you take advantage of it?
Experienced REALTORS® can help you sift through the pros and cons of selling your home during a seller’s market. While many homeowners hesitate to sell during market uncertainty, homeowners may lean toward selling when their home is a hot commodity. Consider these advantages as you weigh your options.
If there is a higher demand for homes than actual listings on the market, chances are you may receive multiple offers from interested buyers. Unlike in a buyer’s market, in a sellers’ market, some individuals will be willing to outbid other buyers, helping you sell your home for more than its list price.
In a seller’s market, you typically face less of a sense of urgency than the buyer.. Buyers in a seller’s market have to move quickly if they are interested in a home. Along with help from an expert real estate agent, listing your home in a seller’s market can give you peace of mind that you’re selling your home at the right time in an effort to get the best offer.
When you are selling your home in a seller’s market, the ball is in your court. You don’t have to settle with the first offer on your house because you may receive competing offers in a short period of time. This gives you the freedom to negotiate a better deal with those interested in buying your home, maximizing the home’s value and your bottom line.
While your house is on the market, continuously showing your home and keeping your space spotless for new visitors can be daunting. Listing during a seller’s market may help you sell your home more quickly, thereby alleviating stress.
READ MORE: How Professional Home Photography Can Help Sell Your Home Quickly
Determining the right listing price for your home can set the stage for a successful selling process. REALTORS® understand the complexities of pricing your home in a seller’s market and will consider strategies such as the ones below when working alongside you to determine the appropriate list price for your specific home.
This may sound counterproductive, considering seller’s markets give you the opportunity to sell your home above market value. However, listing below market value is a strategy some use as it may prompt several buyers to present competing offers.
Though there are some financial risks involved with this strategy, you may have the benefit of choosing from a multitude of options due to bidders who are trying to push away the competition.
Some homeowners choose to aim high when it comes to listing in a seller’s market. If you are interested in listing your home above market value, a seller’s market is certainly the time to do so. With this strategy, you may expect offers for less than list price and you may receive fewer offers. However, this still gives you the opportunity to sell your home for a higher price than in a buyer’s market.
However, aiming too high may cause your house to be ignored if the price is significantly higher than your home’s true worth. However, you can always lower your price over time.
How can I update my home on a budget before selling?
One common strategy you may use in a seller’s market is to list your home at the current market value. Many homebuyers will realize your home is priced to sell, making them less likely to offer you an unrealistic or low bid. Oftentimes, homes listed at market value will receive a variety of interested buyers who are willing to pay more.
We want to be here for you every step of the way. If you are interested in selling your home, our experienced agents at Marx-Bensdorf, REALTORSⓇ would be glad to assist you throughout the process. Contact us today to be paired with one of our agents for a personalized and streamlined process.
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