Selling Your Home In A Low Inventory Market

Selling your home in a hot real estate market when inventory is low and buyers are plentiful could mean a faster sale and/or receiving more than your asking price. When demand exceeds supply, homeowners looking to sell have a distinct advantage over buyers when it comes to price negotiations. Since prices naturally rise when inventory is down, it's a great time to get a premium price for your property, but there are still some pitfalls to avoid. Trust the expertise of an experienced real estate agent to help you navigate the sale and provide valuable advice for selling your home.

Price Your Home To Sell

Take care not to set the bar too high when it comes to your listing price. Even with stiff competition, if your home is priced far over even what competitive bids might bring, it could linger on the market and become stigmatized. Furthermore, if the home doesn't appraise for your asking price, a lender won't approve a mortgage for the full amount and a buyer unwilling to make up the difference in cash may lose interest.

Starting at a slightly lower asking price may also present an unexpected advantage. Homes priced slightly below market value often spark competitive bidding. When you have multiple buyers interested in your property, you could ultimately net more for your home than if you'd started at a higher price initially.

Compare Offers Carefully

Once you've received several offers, it’s time to analyze how much each buyer offered for your home and other critical factors that could make a slightly lower offer more attractive than others. Important components to compare include:

  • Earnest money deposit amounts
  • Cash versus financed offers
  • Proposed type of financing
  • Down payment amounts
  • Inspections and other contingencies waived
  • Unusual requests or allowances
  • Closing costs and proposals to self-pay

Consider Your Options

After comparing offers, you can accept the offer you find most attractive, issue a counteroffer to one or more buyers, ask all buyers to resubmit their offers, or adjust your sales price and await further offers. Your real estate agent can help you with your decision, and in those situations it’s critical to work with an agent who has a complete understanding of up to the minute market conditions.

Be Prepared To Sell

Just because homes are selling quickly doesn't mean you don’t need to prepare your home for sale. A home that isn’t move-in ready may still be unappealing even in a seller's market. Take the time to clean and declutter, make small repairs, and improve your curb appeal to make your home market ready.

Homes in a hot market do tend to sell quickly and often have shorter contract deadlines, so you should also be prepared to quickly present all relevant documentation to potential buyers. Before listing your home for sale, prepare your disclosure documents and consider getting an inspection done. This allows you to present an accurate picture to potential buyers from the start. It also sets you up to close the sale faster, which is an added perk if you've already purchased a new home.

Hire A Real Estate Pro

Even in a seller's market, working with an experienced real estate agent is important in order to maximize your opportunity and make sure the process goes smoothly. With over 30 years of experience, Matt Dejanovich at Real Estate One in Ann Arbor, MI, knows how to get you the best result possible whatever the market conditions when you sell. Put his knowledge of the local real estate market to work for you. Contact Matt at 734-476-7100 to schedule an appointment today.

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