The seller’s market in real estate isn’t something new to the home buying and selling experience, but if you haven’t been through it before, you might not know exactly what to expect when making your decision about whether or not to list your house on the market.
According to new data from realtor.com, a recent CNBC article reported that the supply of homes for sale is finally showing signs of improvement but the number of active listings is still down 67% from pre-pandemic levels. The US Existing Homes months supply was last recorded at a rate of 2.20 – the monthly supply of existing homes measures how many months the current inventory of houses for sale would last. By this measurement we only have about two and half months supply at the existing rate of sale. That still puts us knee deep in seller’s market waters.
Fortunately, we’re here to give you some great tips on how to make the most of this seller’s market and get the best deal possible out of your home sale!
The best time to start thinking about your asking price is before you put your house on the market. If you want a bidding war, it’s not going to happen if you’re already asking for a discount from what your home is worth. Be honest with yourself about how much profit you’re willing and able to leave on the table.
That way, when offers start rolling in, there won’t be any hard feelings over low-ball offers. (And yes, sellers also get rejected and insulted.) Letting buyers understand up front that your bottom line isn’t negotiable will save everyone a lot of time—and keep them from being hurt by disappointment and disillusionment at finding out that their offer was too low.
And if you do decide to accept an offer below your asking price, don’t feel bad about it. You’re still getting more than your property is worth! And even though listing prices are always negotiable, no one should ever feel like they have to give away their property just because they’re desperate to sell. Remember: It’s always better to wait for a fair deal than rush into something that feels unfair.
Title Companies, Lenders, and Closing Attorneys
While many homeowners think title companies, lenders, and closing attorneys are only needed when a person is buying a home, they’re actually also required when a person sells their home. All three professionals play an important role throughout every step of the sale (and purchase) process.
They’re all equally responsible for verifying that there aren’t any outstanding debts attached to your home (e.g., back taxes or outstanding liens). Because these transactions involve large sums of money, it’s critical that each party involved understand their role in each stage of the process and ensure they have proper documentation before moving forward with anything.
Can I rent out my property while it’s on the market?
Yes, you can rent out your property while it’s on the market. If you’re using a traditional real estate agent, make sure they’re OK with that before you sign up. And don’t forget to factor in agency fees, which vary from one percent of sale price for agents charging by commission and three percent for agents charging a flat fee.
How do you know if you’re selling at the right time?
If you’re wondering whether it’s a good time to sell your home, there are a few things you can do. First, understand that there are two markets – seller’s and buyer’s. When we say seller’s market, it doesn’t necessarily mean everyone can raise their prices; it just means sellers don’t have to worry about not finding a buyer. The easiest way to determine if you’re in a seller’s market is through an appraisal. A Realtor or appraiser will evaluate your property and tell you whether it’s worth more than other properties like yours have sold for recently.