The market is hot. It’s a extreme sellers market. As a matter of fact Seattle is tied with Denver with the lowest inventory in the nation. Homes are selling quickly and for top dollar. However with the market conditions highly favorable for sellers, I still see mistakes that are costing sellers thousands. Here are 5 mistakes sellers make in a hot market:
- Hire any real estate professional or agency.
- Accept an offer on day one.
- Don’t pre-inspect the home.
- Don’t make the home compelling
- They overprice the home.
Think Carefully about who you hire to help you sell. Sure perhaps you’re wanting to give the family member or friend that’s new to the business a shot, and that seems noble, but is it in your best interest? Interview several agents, find someone that listens, has a strategy and a proven track record of success. If you do go with a newer agent (I was new once) make sure they have an experienced agent backing them up.
Don’t take the first offer on day one. When I see a home in this market sell in one day, the first thing that comes to mind is they left money on the table. The average days on market in King County right now are 7 days. It could be much lower but many agents are advising their sellers to review offers on a future date. This allows syndication of a listing out to internet marketing sources and ample time for buyers to “kick the tires” before putting together an offer. We have seen offers come in early, however by waiting we always get the best price and terms and conditions.
You don’t know what you got until you’ve looked under the hood. I can honestly tell you that I have not been in my crawlspace in years. We have saved our sellers tens of thousands of dollars by pre-inspecting the home. This allow us two advantages. First, we now have a “honey-do” list of differed maintenance that we didn’t know needed to be addressed and can be completed before the listing date. The second advantage is that it allows more buyers to come to the bidding table. They can inspect on their own if they like or use the sellers inspection as a sort of extended sellers disclosure.
Staging a home simply gets you more for your home. Just like a car dealership, a seller needs to primp and prep before selling a home. Buyers need to be guided through what is possible. It’s not just cleaning the house, the windows and some touch up painting, it also means having a professional stager that can help emote a feeling when someone walks through the door. According to NAR 77% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.
Would you like a Dutch Auction? In this market it’s hard to overprice a property and I have to say I have seen it happen. With rapid appreciation many sellers are getting a tad overconfident with their pricing strategy. What happens when you overprice in any market is you end up with what is called a Dutch Auction. This is where a seller lists a property at a high price and lowers it until some buyer determines that the price lowered to is acceptable. In a market where homes are selling in 7 days, overpricing a property then lowering the price week after week, reeks of desperation. Furthermore negotiating with just one buyer gives the seller a disadvantage.
Conclusion, not all homes are selling in 7 days, and not all homes are getting multiple offers. Taking a proven approach to selling your largest asset is what you owe yourself in any market. If your curious about our Premiere Listing Service contact me.