4 Ways to Sell Your Home in a Strong Market
The process of selling a home is often both lengthy and stressful, however, with a proper understanding of the market, how to value your home, and how to negotiate effectively, you will be able to make a deal that you are satisfied with. There are many elements that affect how your home performs on the market, such as its location or if it requires any major repairs for example. Buyers are searching for a home that is worth their money and that will provide a decent return on their investment in the long-term.
Know Your Market
Depending upon your specific market, home prices will fluctuate. In a “buyers’ market,” prices are set much lower. This is due to the fact that there are more homes available than there is a demand for. On the other hand, a “sellers’ market” is a term used to describe when there are more buyers and not as many properties available. Prices can be set higher at this time because of the high demand. Your ideal market is going to be the latter. If you are unsure of how to establish which market you are in, you can do some research into the DOM (Days on Market) statistics and appreciation rates in your area for more clarity. Say for example the homes that fit into the same category as yours are not selling very well. This could be a strong indicator that there is not much of a demand. Looking into these statistics will benefit you immensely when it comes to placing a value on your home and increase your negotiating power.
Timing Is Everything
It is very important to note that if you wish to sell your home at the best price possible, high equity is your friend. While the demand for homes does in fact change as the weather does (homes are purchased less in colder months), this should not be the sole piece of information that you use to decide when to sell your home. Home equity is the current market value of your home after subtracting what you still owe. Ideally, this number would be a positive one. Home equity can go toward moving expenses, selling costs, and any remaining mortgage balance. If your home equity is in the negative, you would benefit from remaining in your home longer to accrue more if possible, unless you are willing to pay for any associated costs out of pocket.
You should carefully consider the price of your home before setting it as it is costly to make an error here. Take note of the market and what is deemed reasonable to come up with an attractive price for your home. If you set the price too high, and later have to lower it due to a lack of interest, the home will likely stay on the market longer. This is because price drops tend to raise suspicion. Potential buyers might assume that the home has a flaw or that it isn’t worth much at all, which could lead to the buyer having more leverage during negotiations. Not to mention, the longer your house stays on the market, the more you might have to spend. If you need to move quickly, you could end up paying a double mortgage, high storage fees for your belongings while you wait for your house to be sold, or even be prevented from closing on a new place.
How Are You Selling?
When it comes to the actual selling process, there are ways to make more from your listing. Typically, sellers will acquire a real estate agent to take care of the selling process for them, however, many sellers opt to list their home as FSBO (for-sale-by-owner). If you decide not to bring on an agent, you will have to do their job yourself. This means more work, but it also means that you will be able to keep more of your money since you won’t have to pay them any commission. However, if the person buying your home has their own agent, you will most likely have to pay their commission. It is very important to carefully consider your options on ways to sell and do plenty of research. Listing your home as FSBO without much experience in this field could cause an immense amount of stress. Home selling is a complex endeavor, but if you educate yourself on the process and utilize the resources available, you will have a much smoother time selling your home in any market.