For sellers, this accelerating market means faster and easier sales, but only if you prepare and plan accordingly. For buyers, this simply means you are stuck fighting is out with all the other buyers who are also looking for their dream home.
Seller: Plan, prepare and disclose
While it is nice to be in the position to hold all the cards and call all of the shots, the market won't be a forgiving if you miss a step. The last thing you want to do is go “Back On Market”. This can halt the dream deal you were initially looking for.
The safest thing to do is not lose your first buyer. If you know you have any issues with the property, the best rule of thumb is to determine what issues need to be addressed before you list the home. Beyond that, be sure to tell the buyer before they discover it on their own. The buyers have more leverage once there are items discovered during inspections.
It's very simple, if the roof is old, the basement is not permitted or leaky faucets...it is better to tell the buyer in advance in order for them to factor in the items. Buyers will be more forgiving of defects if they are competing with other buyers...not disclosing them can derail the deal.
Buyer: Just get ready
In general, buyers today are ready to go, motivated and fast to make an offer. You, yourself, must be ready if you are going to compete with other motivated buyers in a competitive market.
Working with your Realtor®, the minute a listing of interest hits the market, make a point to go see it that day if possible. If a home goes on the market during the week, there is no guarantee it will be available by the weekend. Make arrangements in your schedule to be able to scoot out of work or leave early that day to view the property.
Being aggressive and having a very strong desire from a buyer will make an offer within hours of the new listing and if the seller is motivated, they will be happy to work with that buyer and take the home off the market for a “win” “win” situation on both ends!
Seller: Have a plan for dealing with offers
With your Realtor®, create a plan in advance as to how you want to approach the review and response to the offers received. It may seem obvious to pick the first offer, consider if you are moving too fast, will there be others if you wait longer? There is no right answer because each town is different and has different inventory and market needs. This is important to discuss in advance and come up with a game plan prior to putting the home on the market.
With the amount of buyers in today’s market, you may actually appreciate losing on a few homes until the actual “right” one comes along. The process of buying a home can take many different turns and directions. Trust the process! Missing out on a couple will only motivate you more to make the right offer that wins you your new home. Learn from the missed opportunities.
Seller: Know your competition
A smart seller, with your Realtor®, will strategize on when to hit the market and after analyzing the comparables, choosing the right price to get the most buyers to your property versus the competition.
The deal is you can't compare the house down the street with a better kitchen or yard/lot, however you can strategically price it below and give buyers the chance to see the value in your property over the other. In theory, the well-priced homes that are move-in ready tend to grab the attention of the buyers quickly and sell for more money.
If you are buying or selling, the key ingredient is to be prepared! Real estate is one of the largest assets we have and the process can be stressful. Regardless of what kind of market whether buyers or sellers, you need to be ready to go.
As I have said before, please call a local REALTOR for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It's best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.
Lisa DiBiase is a Broker/Owner. She and her company represent buyers and sellers in the Greater Portland area. For all your real estate needs contact firstname.lastname@example.org.