With the market and temperatures heating up moving into the spring months, chances are there will be even more activity and tight competition in the real estate market. Â Even in a highlyÂ competitiveÂ sellers market there are some major issues that can keep your home from selling. Â Read on to understand how you can avoid these pitfalls:
1) Â Over-Pricing and Being Reactive
Let's face it, when there is more demand, prices will go up. Â The only problem is these prices don't just go up over night. Â It takes months and usually years to see major price increases in a given area (if the market isn't artificially inflated of course). Â So assuming just because your neighbor sold his house for full asking price means that you can add a few percent on yours, won't pan out. Â Be realistic and review the comparables when setting list price. Â Also, if you get feedback from showings saying the home is great, but over priced, take that as a sign to adjust accordingly. Â Lack of showings might not mean it's overpriced, but a price reduction resets the listing in all agent and buyer saved searches, and gets more people interested in seeing your home.
2) Â Being Arrogant and Stubborn
Of course your home is the best on the block, and of course you've kept it beautiful, clean and pristine. Â Most sellers have an emotional attachment to their home, whether it's a sentimental attachment or perhaps an attachment based on all the work you've done over the years. Â My advice is to break that attachment and view it as just another house - have a Realtor's outside opinion on condition and value. Â You can't be over confident in this market because you'll only be setting your expectations higher than where they should be. Â Here are some common over-confident and arrogant assumptions to avoid:
3) Â Accepting The Wrong Offer
There are two separate problems you will face when accepting offers, what to accept, and when to accept.
Accepting Any Offer:Â Â A buyer comes to see your house and automatically offers 3% above asking price. Â You've got other offers but they don't compare to this one. Â You accept it. Â Three weeks later when your home appraises around your original list price (not the 3% inflated offer), the buyer refuses to go forward unless you drop the purchase price to match the appraised value. Â Some buyers and scheming Realtors will do this in order to get an offer accepted over others, knowing it won't appraise. Â This is where carefully knowing your comparables comes in.
Accepting the First Offer: Â If you're very well priced, you should receive a large amount of showings within the first week. Â If you have a slate full of showings and great feedback, only then can you expect to have multiple offers. Â If that is the case, don't just accept the first offer. Â Have your Realtor follow up with all buyers that have shown interest and understand how many other offers may be coming in. Â At that point, you'll have the opportunity to get buyers to compete with their highest and best offer. Â Having multiple offers allows you to pick the best terms, conditions and most qualified buyers, not just the best price. Â
It's always good to understand where you can go wrong even when the market is tilted in your favor. Â Avoiding these mistakes will help you keep your cool during this hot market.
Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado.Â Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans.Â For more information or to get in touch with Jared, please visit his website atÂ www.ReimerRE.comÂ or email him atÂ JaredReimer@ReimerRE.com