We’re experiencing an inventory crunch in the Cape Ann real estate market. There are imited homes and many buyers ready and waiting to buy. We’re finding ourselves in a hot seller's market.
Following are some tips to for both sellers and buyers to make the most of the current market conditions
Just because people like your house doesn’t mean you don’t have to try to sell it.
Many new sellers make the mistake of pricing their home way above market level hoping the sellers market will allow them to turn a hefty profit on their home.
Just because this is a seller's market does not mean that you don’t still have to competitively price your home. The same rules that have always applied still apply.
The standard rules such as staging, valuing the home against similar homes in the area, making it attractive to buyers visually as they approach the home and ensuring that you have the proper representation to get multiple buyers at once looking at your home. This creates demand allowing the buyers to drive the price up organically.
Buyers will flock to well priced home which show well. The rest is human nature.
Making the most of multiple offers to buy.
Now that you have multiple buyers making bids on the home you need to ensure that you choose the right buyer. Well who is the right buyer you ask?
The best buyer is the one who has been searching similar homes in the area, is knowledgeable about the market, is working with a local agent and has already gotten their loan pre-approved for an amount higher than your selling price.
This allows them to be more aggressive when bidding on your home, they know what they want, and they know what they can spend.
Most importantly make sure to keep one or two backup offers available in case the first one has issues securing a loan or other issues in closing. Putting a home back on the market after it was quickly picked up shows that there may be something with the home and will make new buyers wary of the home and may lower the market value.
Being a buyer in this market may at times be frustrating. There is less inventory on the market and often this leads to bidding wars that only one buyer can win. Better offers will win out.
Here are some tips to make sure that when you find the perfect house that you have the best chances of being chosen by the seller.
This goes without saying but the most prepared buyer is usually the one who wins the home.
Having your financing lined up, knowing as much as you can about the home you want, location, schools, amenities etc will ensure that when you make an offer it is one the seller wants to see.
When you see a home don’t spend a week mulling it over, you are prepared, you know you want to buy, submit an offer and get in there. Once a good home hits the market the seller will likely be inundated with offers to purchase, by getting your offer in first you will stand the largest chance of having the seller give your offer serious consideration.
Make sure the seller remembers you.
Having your ducks in a row and being ready to purchase within days of making the offer instead of months shows the buyer you are serious. When submitting your offer set the time frames to days instead of weeks. Get a home inspector out to the house as fast as possible. Inspections are the number one cause of a contract cancellation. Getting the home inspected and signed off on swiftly will make sure that your name is remembered by the seller.