You don’t have to look too far to know that the real estate market has been red hot for some time now. Although the early days of the pandemic had many people nervous and fearing the worst for the housing market, instead the market has taken off with insatiable home buyer demand. The current seller’s market has many homeowners considering listing their homes for sale. However, many first-time home sellers should proceed with caution and not set up false expectations. Below we discuss several of the most common mistakes made by home sellers in this market.
Common home seller mistakes
- For Sale by Owner (FSBO): Strong buyer demand combined with skyrocketing home prices has some sellers thinking that they may find success in selling their homes without a real estate agent. Although this is certainly an option, it is important to remember that hiring a real estate agent will provide the maximum exposure for your property. In fact, a recent survey from Keeping Current Matters found that homes listed for sale with a real estate agent sell for $46,000 more on average than FSBO homes. It is for this reason that 92% of sellers use a real estate agent to sell their house.
- Unrealistic price expectations: The limited inventory of homes for sale combined with strong buyer demand can certainly lead to unrealistic price expectations. It is important for sellers to remember that a listing price that is too high will lead to no interest or showings in any market. In the end, buyers have access to more sales analytics data than ever and will likely realize when a property is grossly overpriced. In the current seller’s market where homes sell extremely quickly, a listing can become stale in a short amount of time.
- Accepting the highest offer: In some cases, buyers may make an outrageously high offer to outbid the competition. Subsequently, some sellers may become enamored with these high offers. However, it is important to remember that offers may fall apart for a variety of reasons including appraisals, financing, and inspections. With prices rising so quickly in the market, it is difficult for appraisals to keep pace. Therefore, an offer that has a financing contingency may fall apart simply because the property does not appraise for the contract value.
Although the current housing market is a strong seller’s market, it is important for sellers to remain disciplined in their approach to listing their homes for sale. After all, pricing a listing is an art that seeks to find the balance of maximizing the return on the sale while also attracting activity. Ultimately, sellers want a situation where multiple offers are received. It is important to remember to review all terms of a contract. The contract with the highest purchase price is not always the strongest offer. A knowledgeable real estate agent will ensure that all offers are thoroughly vetted.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!