A hot market might be interpreted as easy money and quick sales for real estate sellers. A hot market is one that has low inventory and lots of buyers searching for the perfect home. A hot market can often result in a quicker sale and a higher asking price. There also are some downfalls falls that house sellers in hot markets need to be aware of before the money starts rolling in.
Stage Your Home and Property
A hot market means that homes with quirky or outdated features sell faster than usual. Buyers become more desperate to buy a home and are more open to overlooking cosmetic flaws and may even be willing to pay more for repairs such as a roof or windows that are old.
Sellers in hot markets have a greater chance of selling their home “as is” without needing to make major renovations. You, the seller, should discuss with your agent whether you make significant repairs to the property before it is listed.
Even in a hot market, home staging is a good idea. Staging is the best way to get multiple offers for your property immediately after it has been listed. Buyers are motivated by emotions and first impressions in a hot market and need to act quickly. Staging your home is a great way to get someone to fall in love. It will make it stand out from other houses and offer it an advantage over others that may be on the market.
You don’t have to stage if you are unable to. However, it is a good idea to de-clutter and clean the property thoroughly before showing it.
Place your disclosure and other paperwork in order
Hot market properties tend to sell faster and have shorter deadlines in the contract. You need to be ready to present all information regarding your home to potential buyers immediately. To ensure that buyers get a complete picture of your property, you should have it inspected before listing it.
Before the house goes on sale, make sure you have all your disclosure documents ready. A buyer will be more comfortable making an offer if you, the seller, are fully prepared to sell.
You or your agent may also want to set up a title company depending on the market. While many contracts allow buyers to choose the title company, it is helpful to have a reliable, efficient title company “on hold” for them so that the process can move faster towards closing. While a buyer may still wish to change the title company they choose, most buyers will simply go with the seller’s preferred title company.
Marketing your House: Don’t Forget the Professionals
In a hot market, many sellers will be open to selling by owner. Although there may be many buyers for the house, it is important that sellers don’t give up on professional expertise. Find a Myrtle Beach real estate agent for help with your contracts.
Buyers are more inclined to hire an agent to find homes to sell if there is a shortage of inventory. This can be either immediately after listing or before the property goes on the market. Agents are usually looking for new listings through their portal or speaking with other agents to locate them. Although some agents may search Craigslist or want ads, they are usually the exception to the rule. To get maximum exposure for your sale you should hire an agent to market your property to the many buyers who are looking.
Take the time to make a decision on all purchase offers
Place your home on the market carefully. You should ensure that you are available to review all offers within a reasonable time when the property has been listed. Advertise a deadline for all offers. This will let you know when you must be available to review all offers and make a decision. It can be time-consuming so don’t get caught unprepared! ).
You should respond to all offers within 24 hours. If you are certain that you will not accept certain offers, inform the buyers as soon as you can so they can continue their search. You must promptly counter-offer if you intend to do so. The negotiation process can take up to 24 hours.
Be wary of the “perfect offer”. Sometimes, pressure buyers will make promises that they won’t be able to keep in order to “capture” your home and place it under contract. It sounds too good to be true? The buyer may have unexpected difficulties keeping the contract.
Open communication between agents is the best way to avoid this. Talking with the buyer’s agent is a good way for a seller’s agent to gauge the buyer’s ability and stability. A lender can also pre-approved and vet the buyer. Sellers in hot markets may require that buyers are pre-approved by the lender they choose, even if they end up working with another lender.
You should be ready to move quickly
Buyers in hot markets are more likely to purchase with cash. Your buyer may not require a loan approval. This would significantly reduce the time that your property is under contract. You will close quickly if you accept an all cash offer.
Before you put your property up for sale, get mentally prepared. If you don’t find another property that suits your needs, it might be a good idea to rent.
Appraisal problems can be tricky.
It is not uncommon for hot markets to happen quickly. Appraisers may compare your property with properties that were sold less than a year ago. An appraiser may need to search many years back to locate comparable sales, even if no properties have recently sold in your area. These sales will most likely be for much less than your current offer.
This can be a problem for sellers. A property that doesn’t appraise at the asking price will not be eligible for a loan. It is possible to reduce your sale price or find buyers who will pay cash and don’t need an appraisal to close the deal. If a property fails to appraise or the seller refuses to lower its price, it is likely that the deal is over. The buyer will have no other options than traditional lenders to pay the purchase price.
Profit from the Hot Market
You should use the hot market to your advantage if you have exceptional circumstances. When inventory is low, buyers are more willing to make concessions for sellers. You have more bargaining power once offers are made on your property. This will allow you to make special arrangements for moving. Do not be afraid to negotiate. You are just as aware of the limitations of the market as your buyer.
Do not let your hopes get too high!
The market may be hot, but that does not mean there will be multiple offers.
You’ve probably heard of the house that sold in just three days for more than the asking price. You don’t know everything about the sale. Maybe there was something very special about that property that allowed it to sell quickly and for such a high price.
There are many factors that can affect the house prices in different areas. There are many factors that can make a property more desirable than others. For example, a well-designed home, plenty of light, decorator colors or mature fruit trees could all lead to buyers making multiple offers and high prices.
These might not be available in your home. You might not be able to offer these features if you sell in an up-market. Your home is more likely to sell at the asking price than if you were selling in a down-market. If you are one of the fortunate ones who receives more than you could have ever imagined from the sale, you can toast to that at closing with your selling agent!
If you need help selling or finding a home, Call Full potential Real Estate LLC Today!
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577