Our Silver Lake Real Estate Agents say much of the United States is now in a seller’s market — which spells potential for major profits. Additionally, our Silver Lake Realtors say some sellers may observe this as a chance to set the bar higher, maybe too high, when it has to do with their list price. Others may choose a lower asking price, in hopes of generating a bidding war.
So which strategy works well at a seller’s market? Our Silver Lake Los Angeles Real Estate Agents say every approach has its pros and cons, so here’s just how exactly to determine the optimal one for you personally.
Assess The Landscape
Before you move about establishing your list price, our Silver Lake Realtors suggest you examine your area to find out whether you are truly in a seller’s market.
For a profound look at your market, you will have to analyze a few critical variables:
Average Days On Market (DOM)
This measurement indicates the median age of Silver Lake Real Estate listings in your area. When houses are available in your neighborhood at less than 10 days, this is a strong sellers market.
Asking VS Final Home Price
Our Silver Lake Real Estate Agents say in seller’s markets, bidding wars can frequently erupt among buyers, which means that sellers may enjoy a final sales price equal with their asking price or longer.
For example, if a home is listed at $550,000 and retails for $550,000 or higher, that’s a seller’s market. In a strong seller’s market, the final sales price is typically at least 10% higher than the asking price. Our Silver Lake Realtors say rising home prices over the years are a sure indication of a seller’s market.
Listing At Market Value
To hone that range further, our Silver Lake Realtors suggest you assess what comparable homes recently sold for in your area. Very good agents can help you synthesize this info in an asking price that you can justify and stand alone, which is important when the negotiations to a home begin rolling. If you are dealing together with a real estate agent who understands the market, you have to trust their comps.
In a seller’s market, our Silver Lake Real Estate Agents urge that sellers list their house at market value. You have to forget the noise, especially in the event you are looking to sell in a reasonable period of time. For some sellers, it’s always the best strategy, regardless of the status of the market. By listing at market value, you’ll take an exceptional position to acquire a full-price offer relatively fast.
If you’re not on a limited timetable to promote, you could price your home above market value — generally 5% to 10% more — to determine whether you can nab a great offer. But that approach has its flaws.
For starters, our Silver Lake Real Estate Agents say the last thing that you want to do is price your home too high and then have it just lay on the market. When that happens, your house can become stigmatized in the eyes of home buyers, which can make it even more difficult to market.
You might also have difficulty shutting the sale in case a lender’s appraisal of one’s home’s price will not come in at that same high number. Even in the event that you locate a buyer that’s willing to pay you $400,000 for a $300,000 house, a lender may not loan that much money, Unless you have an all-cash buyer, it’d be near impossible to close the sale”
Overall, by listing above market value, your home could sell at a premium–but there’s a greater risk that it doesn’t promote, especially if you should be unwilling to cut back the price.
Our Silver Lake Real Estate Agents say one way to get your property far much more vulnerability is to put the list price below market value — generally 5% to 10% underneath — at an effort to attract additional buyers and potentially ignite a bidding war.
A bidding war is a very good problem to have if you are a seller, however”the longer offers you receive the additional options you have, which can make deciding on the optimal offer challenging.
For some sellers, our Silver Lake Real Estate Agents say the most appealing offer is the person using the fewest contingencies; for others, the optimal offer is the maximum bid. It depends on your own priorities.
Ultimately, our Silver Lake Realtors say this strategy can backfire if you obtain only one offer for the asking price. That’s not as inclined to happen in a seller’s market, but it’s always a possibility. There’s also much less wiggle room for you personally to negotiate if you are given a lowball offer.