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Home sellers – or would be home sellers – often assume that if their home is located in what people are referring to as a “hot” market means they will be in for fast, easy money and a quick and easy sale for their home.
That, in some ways, makes sense. After all, a hot market means low inventory combined with lots of buyers looking for the perfect place. And indeed, often a hot real estate market does mean a faster sale at or a sale at above asking price. That’s the good news. The not such great news is that even in a hot market there are some potential There are pitfalls that a seller should be prepared for:
Yes, You Still Need to Stage
One upside of owning a home you want to sell in a hot market is that slightly outdated, unusual and/or quirky homes, homes that may have lingered on the market for a long time in the past are more likely to sell faster in a hot market. As would be home buyers become a little more desperate – as they often do – they are more willing to overlook cosmetic flaws and oddities and more willing to consider a place that may need a little ‘TLC’ when they move in.
Proper staging, on the other hand, is still recommended, even in a hot market. If you want to attract multiple offers on your property right after listing it, staging is probably the number one way to make that happen. In a hot market, buyers need to move quickly and are driven by first impressions and emotions. There is no better way to make someone fall in love with your house than to give it a bit of a “wow” factor.
Ensure That Your Paperwork In Order
Because a home in a hot market will tend to sell quickly and have shorter contract deadlines, as a homeowner you have to be prepared to present all the relevant and required documentation to potential buyers right away.
This means that you might want to consider getting an inspection completed prior to putting your home on the market so that you have an accurate picture of the home’s real condition to potential buyers, so that they can be more secure in a decision to make a quick offer.
Marketing Your House–Don’t Snub the Pros
If they are selling a home in a hot market many people do at least consider the idea of ‘saving’ money and selling the home FSBO (for sale by owner.) This is because their logic is that if homes are in such short supply, and buyers really are plentiful, why pay someone else to do what they can do themselves.
However, foregoing the assistance and guidance of a real estate agent is not something to be done lightly, even in the ‘hottest market’ in the world. If a home sells quickly the buyers will want to move quickly and if you have no real idea how to do that you could be in big trouble. And the fact is, do you know what you have to do to close a house? No, we didn’t think so.
Be Prepared to Review and Make a Decision on Purchase Offers
Time the placement of your home on the market wisely: Be sure that you will be around and have the time to review all offers within a short amount of time after the property is listed. Often it’s a good idea to actually have your real estate set a date and time by which all offers should be submitted. This will allow you to be prepared to set aside the time you need to consider all of them and still respond within the 24 to 48 hours that is held to be the norm.
Be Prepared to Move Quickly
Hot markets usually see more buyers purchasing a home with cash or minimal financing than other markets. In some cases your buyer may not need to be approved for a loan, which greatly reduces the amount of time your property is under contract. If you decide to accept an all-cash offer, you will need to be ready, willing and able to close quickly, and should be prepared, mentally at least, for that. It may mean a little more work on your part – having a rental lined up if you do not find another property to buy right away for example – so it’s an issue to discuss with your Realtor prior to your home going up for sale.