Seller Mistakes to Avoid in a Hot Market
Selling during a hot market is a seller's dream! High home prices, possible bidding wars, and quick sales are more common during a seller's market. However, some sellers make critical mistakes and fail to take advantage of this market. Below are 5 seller mistakes to avoid in a hot market.
1. Pricing Too High
Home prices are high,...well higher than they were before. However, this doesn't mean that you can select any price point. Sellers still need to consider the competition and look at what homes are selling for in the area. Outpricing the market will result in less buyer interest, longer marketing time, and ultimately a lower selling price.
2. Ignoring Offers
There's a saying in real estate that "your first offer is always your best offer." This does tend to hold true much of the time. Never flat out reject an offer based on hopes that better offers will be received in the future. For one reason or another, those better offers may never come in. Unless multiple offers are definitely expected, sellers should negotiate with any buyer that submits a reasonable offer.
3. Taking a Hard Stance
It's wonderful to receive multiple offers, but ultimately, you can only move forward with accepting just one. After the initial offer negotiation, there will be other negotiation points throughout the transaction, such as inspection and appraisal. Taking a hard stance with a buyer and refusing to negotiate (because you may have other buyers lined up) is one of the major seller mistakes to avoid in a hot market.
Those other buyers may no longer be interested or they may end up trying to negotiate similar terms. Starting over with a new buyer does not guarantee a better deal as a seller and may waste valuable time. If possible, sellers should work through issues with existing buyers.
4. Not Heeding Agent Advice
There will be many friends or family members who may have bought or sold a home recently and will share their advice with you. Sometimes that advice will conflict with that of your agent. Keep in mind that friends/family may have been involved in only a few transactions whereas your agent will have dealt with hundreds. Additionally, your agent has every motivation to get you the best price and terms possible. Be sure to listen to your agent's advice,...after all, that's what you hired him/her for!
Summary of Seller Mistakes to Avoid in a Hot Market
It's a seller's market and sellers do have more leverage than buyers, however, taking the right approach to selling is still extremely important. Sellers must price a home right to attract the most buyers and prevent price reductions. They should treat every offer seriously and negotiate in good faith. They should never take a buyer for granted and assume that starting over with a new buyer will yield better results. Lastly, among the most important seller mistakes to avoid in a hot market,... they should always consult with their agent on important decisions throughout the selling process. Only by avoiding these critical mistakes, can sellers sell quickly and for maximum value.