Seller's FAQ's in a Seller's Market

The Real Estate Market is just that. A marketplace is an arena of competitive or commercial dealings, and it changes with economic, political and societal impacts. 

We have heard the term Seller’s Market over the last while now, and it is not looking like it is going away anytime soon. If you are thinking about selling your home, a seller’s market is a fabulous time to do it, but it can also be nerve-wracking and confusing as to the best strategy to navigate the process and get you the best money for your investment. 

Here are the most common questions we get during a Seller’s Market:

What does a Seller’s Market really mean? 

A Seller’s market doesn’t mean that you should be a seller right now, although you may do better with your investment during one. When there are more potential buyers than homes or a shortage in housing, a seller’s market is the result. The advantage for sellers is that their homes are more likely to sell quicker and for higher amounts, potentially with multiple offers that give sellers negotiating power and a more seamless process likely to meet their specific goals. 

Does pricing your home lower to create a bidding war work?

Often, a seller will list their home significantly lower than what it is appraised to be worth to create a bidding war. Listing a house lower sparks more interest in the place and can increase the odds of more interest. This can be tricky and risky to a seller because you want to be on the winning side and get as much money as possible. You want to work with a trusted realtor to help you find the sweet spot for pricing your home, and it is dependent on many factors such as the desirability of your location, the staging of your home and the condition of your home. A slightly lower price will increase interest and naturally increase competition and attention. 

Do we have to strategically plan for a bidding war in a seller’s market? 

NO, bidding wars are not for everyone. Some sellers want to avoid the bidding war strategy and price their homes at a fair market value to avoid the risk of not getting enough money. Discuss with your realtor about your fears and hesitations, and make a plan accordingly that will help you feel comfortable and achieve your goals at the same time. 

Can a bidding war backfire?

YES, It certainly can! If you work too hard to ignite a bidding war, potential buyers may opt out without even trying to place an offer. Bidding war situations can be discouraging and frustrating for potential buyers. After losing multiple bids and the time invested, many people are tired of it and sometimes walk away simply because that is the strategy. You don’t want to come across as too greedy, so you turn people away, regardless of how they feel about your home. You do not want to alienate any potential buyer that could be interested in your home by a negative first impression. 

Navigating a seller’s market as a potential seller is exciting but can also be precarious and perplexing. It is essential to trust an experienced realtor to help you with decisions to help you reap the benefits of a seller’s market and exceed your goals in a stress-free way. We would love to help you if you have more questions about a seller’s market.