Navigating a seller's market as a home seller

Real Estate

In a seller's market you are faced as a home seller with a quandary.  Do we list our home at close to market price and start a bidding war with multiple offers, or do we swing for the fences and really go for  it with our asking price and hope to get offers?  It's a good problem to have, either way the average home is  selling in this market within 30 days on the market and for an average of 100% to listing price.  So which strategy is best for you as a home seller? Well, that  depends.  

If you overprice your  home, you may very well not get any offers on it.  Most buyers know it's a seller's market today and may very well feel that an offer below asking price may not be enough to get the home and will not take the time  to submit an offer.  Additionally, the longer a home is on the market, the less interest there is and the listing becomes "stale".   This can further lower the perceived value in a potential buyer's mind.

If you price your home too low, you may get a lot of offers, but at what cost?  Recently there was an agent in my office that had received 22 offers on a home they had listed.  Not only did the agent need to wade through 22 different offers, the home seller needs to also be available to have each offer presented to them as well.  How many counter offers do you want to prepare and sign?  What if several counter offers accept, you will need to have criteria for what constitutes the winning offer.  

The best  advice I can give is for you to have your Real Estate agent carefully prepare a comparative market analysis and take into account as many details as possible to best represent what your  home is worth.  Don't accept a cookie cutter approach to determining your  homes value.  Ensure your agent does their homework and the price they suggest is truly a fair estimate of market value.

Sean