Seller: Prepare, Inspect, Disclose and Plan Ahead
While sellers hold the cards and call all the shots, the market is less forgiving if you make a mistake. Going “back on market” can mean that you might not ever see the dream deal you had with the first buyer again.
The best technique is not to lose the first buyer. If you know of any issues, get in front of them. It’s better for you to tell the buyer before they discover the issue on their own, because once you have a deal, the buyer takes control.
For example, if the roof is old, you have a room that’s not permitted or you have a small plumbing issue, it’s ideal for you to discuss this with the buyer in advance, so they can factor that into their offer. Buyers are more likely to be forgiving of defects if they are competing with other buyers, but withholding any issues from them could kill your deal.
Buyer: Be Ready to Move
In today’s real estate market, buyers can be aggressive, motivated and quick to act. You must compete with these people if you are serious about becoming a homeowner in a competitive sellers’ market.
The second you notice a desirable new listing, whether it be via phone alerts or emails, it is crucial to make a point to see it. If a home goes on the market on a Tuesday, you can’t expect it to still be available by that weekend.
The competition among buyers and a strong desire for homeownership will propel a serious buyer to get into a house and make an offer within hours of it listing. If the seller of the house is serious and motivated as well, they will work with the buyer and take it off the market.
Seller: Have a Strategy for Handling Offers
It may seem obvious to take the offer you get two days after going on the market, but it is important to make sure you’re not moving too fast. If you know there will be other offers if you wait, then it may be best to hold off on the current offer. This is something you should discuss with your agent so you know what you’re going to expect from the market.
There is no universal approach to dealing with offers because each town, county and a market are different. In some cases, it might make more sense to wait a week to 10 days, have more showings and review any and all offers at once; while in others, you may want to act on the offers as they come.
Taking the wrong approach may result in you missing out on a better offer to come, or losing the excitement and momentum of your hot-to-trot buyer.
Buyer: Expect to Miss Out a Few Times
The process of buying a home takes buyers in many directions, and is organic in nature. It is best to go with it. You might not offer enough or not act fast enough on one or two homes early on, but this should not deter you. This should ultimately motivate you to keep in the market and up the ante. Additionally, the more you see homes, the more comfortable you will be with the market and how it works.
Learn from each missed opportunity. Knowing that you lost out once before should motivate you to make the best offer the next time. You don’t know what you don’t know, so you should be willing to chalk up a loss or two to experience. In addition, you may look back and realize that a home you thought was perfect wouldn’t have been so great after all.
Seller: Know the Competition — and Compete
As a smart seller, you will hit the open house circuit weeks before going on the market. Once these sellers are ready to go, they will analyze the “comps” again. The strategic seller will price their home to get the attention and activity of buyers.
While you may not be able to compete with the similar home down the block with the killer kitchen, pricing your home well below it will allow a buyer to see value and room for improvement in your kitchen.
Buyers today like the herd mentality. If someone else wants your home, it must be desirable and valuable, so they want it, too. Homes that are well-priced and show well will grab the immediate attention of the buyers, and sell faster and for more money.
Buyers and Sellers: Be Prepared
Whether you are buying or selling a home, it is important to be prepared, as real estate is expensive, and the process can be stressful. In markets that are active, both sellers and buyers need to be on their game if they want to successfully buy and sell.
Because they can plan in advance of going on the market, sellers have the advantage. They have the luxury of being proactive, and they should use that to their advantage.
On the other hand, buyers need to be reactive and, as such, need to be prepared to move on a dime. When it is all said and done, life goes back to normal. But prepare for a wild ride in the meantime.
For more information on buying or selling your home, contact one of our real estate agents here at DBL Real Estate with the link below!