The real estate market is dependent upon supply and demand. High inventory and low buyer demand create a buyer’s market, while low inventory and high buyer demand lead to a seller’s market. Understanding the local market conditions prepares you for how to market to achieve your sales goal.
What’s Happening in Today’s Market
The greater Huntsville area is experiencing a great seller’s market due to the demand for living in one of the top midsize cities in the U.S.
With a surge of out-of-state buyers more offers are being extended without the buyer seeing the home in-person due to the competition. Buyers are making their decision solely on virtual tours, photography, and property descriptions.
Additionally, the high demand means sellers are experiencing multiple offers on homes across all price points.
To win their bid, we’re seeing more buyers adding escalation clauses to their offers. An escalation clause indicates the homebuyers are willing to increase their offered purchase price if the home seller receives another bid higher than theirs.
First Steps When Selling Your Home in a Seller’s Market
Knowing that your property is more likely to receive multiple offers and competitive bids shortly after the home lists makes it tempting to consider selling by owner.
While Huntsville still has an influx of buyers, we advise that you should take advantage of professional real estate expertise. Many home buyers utilize a real estate agent when house hunting and while they might take a buyer to look at a for sale by owner property, having your home listed in the MLS will greatly increase the amount of times your home is shown to potential buyers.
Hiring a real estate agent to assist with your home’s sale helps you market to this target audience, ensuring you have highly interested and qualified buyers viewing your home.
A real estate agent will also help you optimize your home’s marketing appeal to make it even more enticing to the searching buyers.
If you are thinking about making any upgrades to your home, talk to a real estate agent first. We offer complementary home evaluations, when you contact one of our agents. Our listing partners will give you all the information you need to sell your home for the best price possible. It may not be necessary to get maximum value from your home, as many buyers will make renovations to suit their tastes. Your listing agent will help you decide the best investment of your time and money.
As you do prepare to list your home, keep in mind that buyers know they have to decide quickly on what they’re seeing. It’s essential to stage the home so it resonates emotionally with the buyers.
When using a listing agent they continually network and interact with buyers agents who know exactly what their clients want to see in a home. This helps the listing agent make your home more appealing to as many buyers as possible and even sell your home before it hits the market. This can lead to a multiple offer situation where they can negotiate the best terms for you.
Ready, Set, Sell!
Once your home is ready to be listed on the market, gather all the necessary documentation about the home so that you can quickly answer any buyer questions and show you are prepared to move forward with the sale.
Work with your real estate listing agent to price your home to sell. You’ll get more interest in your home if you can match the market value. Our free home evaluation tool will estimate what your home is currently worth. For an even more accurate estimate based on your home’s unique features, consult in person with one of our listing experts.
Have a Lot of Offers?
A multiple offer situation is an advantage for the home seller, but it also leads to some decision-making on your part. Take the time to analyze all the offers. Evaluate each one’s advantages and disadvantages individually.
First, verify the buyer hasn’t overextended themselves and can afford to follow-through on their offered purchase price. If the home buyer plans to finance some of the purchase, check for a pre-approval letter with their financing amount.
Next, pay close attention to the contingencies that come with the offer, such as a home sale contingency or an escalation clause. Some contingencies, like a home inspection, are still standard, but perhaps one buyer will waive their right to negotiate for repairs. Look at the contract details–when do they want to close? Does that make sense for your timeline?
Gain an Advantage Listing in a Seller’s Market
It’s helpful to know where the real estate market stands as you prepare to list your home. Our area is currently in a strong seller’s market. Hiring a real estate agent is your best chance of navigating this kind of market. The Amanda Howard Sotheby’s International Realty team has the knowledge and skills to ensure your home is marketed to the maximum number of buyers, providing the best result from your sale.