As the real estate market shifts from multiple offers, bidding wars, and contingency-free offers, sellers should prepare for the change from these glory days. With buyers having less borrowing power as mortgage rates rise, sellers may not always see the almost unbelievable offers they’ve heard about or saw their neighbors receive a year ago. If selling this fall, be sure you’re not setting yourself up for disappointment by knowing what to expect vs. fantasizing about the way it used to be.
1) Bidding Wars Should Not Be the Expectation
Over the past couple of years, a majority of homes listed often received multiple offers within the first day of hitting the market. However, there is no guarantee that today’s sellers will see a flurry of offers that spark a bidding war on their property. When inventory is low, multiple buyers compete over the few homes available. But, as inventory grows and buyers have more choices, it reduces the chances of buyers competing over a single home.
2) Receiving an Off for List Price Only or Less will Become the Norm
With the spurring of bidding wars, many buyers would offer over the asking price to help make their offer more favorable than other offers. While there’s still a chance of receiving above-asking price offers, it is less likely to be as prevalent as previously.
3) Your Home May Sell in Weeks or Months Instead of Days
It’s important to note that if a home is priced right, it is not likely to sit long on the market. However, in the past, it was as if any home (even if significantly overpriced) received a contract within days of hitting the market. Sellers should adjust their expectations and be more patient if an offer doesn’t roll in right away. Sellers should understand their home’s market value and listen to their REALTOR’s advice when pricing their property to help reduce the time the property sits on the market.
4) Don’t Expect Every Offer to Be Contingent-Free
When a property received multiple offers quickly, it was not uncommon to have a few offers without any contingencies, as some buyers opted to skip inspections or appraisals. However, it is likely to become rare for every seller to see contingent-free offers. Instead, sellers should ensure their property is in tip-top shape to receive the best offer and worry less about buyers asking for major repairs after a home inspection.
5) Ensure Your Home is ‘Showroom Ready’ Before Listing
Listing and selling a home as-is was much easier in the earlier real estate market. Today’s buyers are more selective and will not look past certain deficiencies or quirky features/layouts. The days of receiving a full price or above offer without making upgrades or necessary repairs are expected to end soon. To ensure you receive top-dollar for your home, make sure it’s showroom ready before opening your doors to potential buyers.
If you’ve been thinking about selling your home in Northeast Tennessee or Southwest Virginia, there is still an influx of buyers looking to move to Bristol, Abingdon, and Marion. Although the market may look a little different than a couple of years ago, if sellers set realistic expectations, they can still take advantage of cashing in on their home’s equity. Contact us if you have questions about selling in today’s market and help you decide if now is the right time to make your move.