Putting your home up for sale during a seller's market is optimal, as it will generally result in the completion of the sale with the greatest returns and the least amount of hassle.
However, there’s a bit more nuance involved in negotiating the best price during this ideal time.
To help you out, we’ve come up with some tips to ensure you get the most out of your home sale during this beneficial time.
What is a Seller’s Market?
A seller’s market is created when there aren’t enough houses on the local market to keep up with its demands.
Those lucky enough to sell their house in a seller's market will typically enjoy the ability to list the house at a higher asking price, and the house will spend less time on the market — typical of any sale where there's low supply and high demand.
This is in contrast to a buyer’s market, in which the market sees an increase in available properties, with not enough demand to warrant it — high supply, low demand.
A seller’s market is usually created by one or more of the following three factors:
Lower than usual interest rates
An influx of those looking to buy in the area
Less houses available on the market
Usually, selling in a seller’s market means there will be an increase in bids, as there will be more potential buyers looking for this desirable property.
How to Take Advantage of a Seller’s Market
While you’re certainly already at an advantage when listing your home during a seller’s market, there are certain steps you can take to make your property look even more attractive to prospective buyers during this lucrative time.
List the Property on a Friday During Spring
While you can’t choose when the market becomes a seller’s market, you can choose when you list your house. Research has shown that houses tend to sell faster during spring months, so if you're lucky enough to be selling your house during a seller's market in May, list fast!
Buyers also tend to use the weekend to view home listings, so putting your home up as early as possible on Friday morning with an eye-catching presentation means it'll have a better chance of being seen above the competition. Make sure to include pictures that really stand out and capture the uniqueness of your house.
Spend Time Creating a Welcoming Open House
The more time you spend ensuring your house is spotless and setting it up to be as warm and inviting as possible, the more open house visitors will be able to picture themselves living in it. Spending a little money on upgrades can mean seeing that investment pay for itself with higher bids for your desirable property.
And since those few other houses on the market will also be taking advantage of the fact that they're selling during a seller's market, it's important to make your home stand out against the other listings.
Lower the Sale Price to Encourage Bids
A great strategy for encouraging bidding wars with potential buyers during a seller's market is to set your sales price to just below its appraised market value.
Potential buyers will see the value during a seller's market and act quickly to place bids on the property, resulting in a bidding war which can raise the price higher than it would’ve been had the property entered the market with a higher asking price.
These are just a few strategies that can have your home sold faster and at a higher price, allowing you to make the most out of the advantageous seller’s market.
For more tips and real estate advice that will help you get the most value for your home, contact Geoffrey Moore today!