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Do you know four common misconceptions about a strong sellers market? We’re in a sellers market. What does that mean? It means that we have low inventory and high demand, less homes available, more demand for those homes, so that creates a massive pressure on the market. Buyers are all fighting over those homes that are available. Now, even though homes are selling quickly and sellers are demanding higher prices, as a result of that, there are some things to be aware of. If you’re a home seller, or somebody that is a home owner thinking of selling your home in this market in 2021, pay attention to these four common misconceptions. They will lead you down the path of selling for more money and doing it more smoothly if you can get these things straight.
Number one misconception. You need a plan for the next home before you sell your current one. We have provisions now, we’ve adapted to this market. We figured out a way to help our sellers out and here’s how we do it. We can delay your closing. Typically, back in the day, we could close in 15 to 20 days. That would be a pretty normal timeline for a lender to close out a loan. Now, we’re negotiating to have that put out a little bit further, to have that delayed closing to say 40 days instead of 20 days.
In addition to that, we can build in an occupancy period. What that means is the seller can stay in the home for sometimes up to two months or more after the closing. You combine those two things together, a delayed close plus an occupancy period, and we’re getting our sellers up to one hundred days in the home after the accepted offer. That allows you to go out and find that next home with confidence because you have a lot of time.
The second misconception is that your home’s condition doesn’t matter. It doesn’t matter as much as it used to matter, but remember this, condition always drives price. This is why we always give our sellers home staging tips and advice designed to help you sell your home for the most money in the shortest amount of time and the least amount of hassle. If you don’t intend to sell it quickly, we can also have those delayed provisions in place so you can have time to navigate. Sometimes it makes sense to sell your home as is, and sometimes it simply does not. Hire a professional that can guide you through making the right decision on how to get the home prepared. Is it a home that needs to have a few things done prior to listing? Hire the right professional that can help guide you in that area, and that’s somebody that is selling a lot of homes.
Third misconception. You can price your home above the market. There is definitely a sweet spot when pricing your home. Don’t list it too high. Don’t list it too low. List it just right. Like Goldilocks and the porridge. Your home price has to be just right. Why is that? It’s because we can’t afford to be shop worn. There is a misconception here that the longer the home stays on the market, the more money you’ll make. It’s actually, statistically proven, regardless of market conditions, an inverse relationship between days on the market and price. The longer you’re on the market, you become shop worn. You become stale bread. Buyers begin to make note of your home.
Hire a professional who is active in the market, who can study the numbers, and let you know what that sweet spot is, and nail it. How does a rocket ship take off the launching pad? With massive velocity. We want to get a lot of activity. We can drum up a lot of activity in the beginning if the home is priced right. Then we can get people to bid against each other in order to drive the price north.
The final misconception. You don’t need a realtor to sell your home. Going for sale by owner is extremely tempting right now. Follow the numbers. This is super important that when you have a home that is properly priced, staged, marketed correctly, all of these things are working for it. We get more showings. For example, we’ll have upwards of a hundred showings and 50 offers on a weekend. The typical for sale by owner might get a dozen showings and they might have two offers. You see the difference there? Two people fighting against each other to get that price up is not the same as 50. When you do this thing right, you hire an agent with a massive marketing budget, someone who is an expert negotiator. We can work that leverage against each other. The buyers will begin to bid that price up, and you’re going to get more money.
Not only are you going to offset your commission, you’re going to walk away at the closing table with thousands of dollars more. Not only that, but you’ll save yourself the time, energy, the headache, the safety concerns, and potential legal challenges. As that as the old saying goes, I can proudly rip out my molar with a rusty pair of pliers to save the money, but I choose not to. Why? Because the dentist will get it done a lot less painfully and probably a lot cleaner. Hopefully these four misconceptions that helped you understand the market and how you can win. If you want to go deeper on any of these four, reach out to us here at Yoder Real Estate. We are here to help you get your home sold for the most amount of money, in the shortest amount of time, and the least amount of hassle. That’s what we do best regardless of market conditions.