Some people who are ready to sell their home may think that a hot market can mean quick and easy money. In many cases, this can mean a faster sale and it may be sold above its asking price. This said, it doesn’t mean there are no pitfalls to consider including timing the sale of your home.
Get your Property “Show Ready”
If your home falls in the outdated or quirky category, it still may sell faster than it normally would. Buyers in this climate can get desperate which means they could be willing to overlook some cosmetic flaws and in some cases, even pricy repairs.
If you’re selling in a hot housing market, you have a better chance at selling “as is” without making any major updates first. You should discuss if it’s worth it to do so with a REALTOR(r) to try to maximize the proceeds you’ll net for your home.
In spite of the market, home staging is still strongly recommended, not only to attract multiple offers after listing but also to get the most money you possibly can. Buyers move quickly and often times, use their first impression of a house to decide if they want to see it or not. Giving it a great “wow” factor will help to set it apart. Check out this article on the best selling feature of a home for more details.
Even if your home isn’t professionally staged, you still want to make sure you declutter, depersonalize and clean to prepare it in advance for listing photos and showings.
Make Sure You Get Your Disclosures and Paperwork Together
Since buyers will be moving quickly, if you’re selling in a hot housing market, you have to be prepared. This means getting all of your relevant documents in order, in advance. An inspection before you list the property is a great idea as you can provide this to potential buyers. The same goes for lining up a title company.
When a seller is completely prepared to sell, buyers will also feel more confident making a quick closing offer and in many cases, one with less or even no conditions.
Work with a REALTOR you can Depend On
The market is hot and you feel confident about selling in a hot housing market. With this in mind, you may think about selling for sale by owner, also known as FSBO. Just because you can, doesn’t necessarily mean that you should. You still need to market your home to sell. In addition, a REALTOR will negotiate on your behalf and help you avoid any costly mistakes throughout the process.
Reviewing and Deciding on Purchase Offers
When you’re selling in a hot housing market, timing the listing of your home may not matter quite as much as it normally would – but it doesn’t mean it’s not important at all. You still need to make sure that you’ll be present and available to review the offers when they are made.
It would be wise to advertise the date/time you’d like offers to be presented by so you can review them altogether. Usually, you’ll need to respond to them within 24 hours and it’s important to let any buyers know if you’re not accepting their offers. During negotiations, expect another 24-48 hours as well.
Don’t be fooled by the perfect offer. Sometimes buyers can make promises that they can’t keep such as foregoing a financing condition then they aren’t approved after the fact. Anticipate possible challenges when reviewing offers. Your REALTOR should ask the cooperating brokerage questions when something appears too good to be true.
Hot markets often arise quickly. Appraisers might be comparing your property to properties sold at least a year ago. If no properties in your neighborhood have sold recently, an appraiser might have to look back many years to find comparable sales; sales which will likely be for a lot less than your current offer.
Get Ready to Close Quickly
Selling in a hot housing market can lead to a short closing. You need to prepare for this especially if you haven’t bought your next home yet. If it’s an all-cash offer, more than likely the closing will be even quicker.
Don’t Get Your Hopes Up Too High!
Just because you’re selling in a hot housing market does not guarantee multiple offers for over-asking price. Sometimes the house up the street that sold for $250,000 over asking is just a fluke. Don’t expect this is exactly what will happen to you. Every home sale can be a bit different depending on timing, who is interested in buying and more.
If you’re planning on selling in a hot housing market, I hope you’ve found these tips to be helpful! You may also be interested in this article on what home buyers REALLY want.
Thinking about selling, let’s talk! For more about my services and what you can expect from me if we work together, click here. In the meantime, find out what your home is worth.
