YES, we are in a sellers’ market! The question is, for how long? As a seller, you obviously want to get the most for your home with the least hassle. We all do. So, When should you sell? Procrastinating home sellers who don’t list their home soon after they catch wind of record-level sales, multiple offers and offers well over asking price could be losing out and leaving money on the table.
In a matter of months, the market can turn from a sellers market to a buyers market and vice versa. The problem is consumers are typically 6 months behind the transition. Not only from one market to the next, but from a inclining market to a declining market. By the time the market starts to shift and start the decline, it is too late. In a market like we have now, sellers are pricing their homes above the last comparable “sold” properties and getting offers. When the market shifts, the offers start comoing in below asking and the trends starts moving the opposite way.
A huge mistake sellers make is waiting too long to sell. More times than not, sellers trying to time the market to get the highest price typically get less. Keep a a close relationship with your Realtor and make sure he keeps you in the loop as to what is happening in your area. When you see homes receiving multiple offers and selling over asking price, it’s time to start considering putting your home on the market.
With the inventories so low and demand so high, the average price of homes start to increase. Some parts of the country are talking about homes sitting on the market for months, in San Diego it’s days even sometimes hours. Ask your Realtor about the current absortion rate. This is the number of months, weeks, or days it would take for all the current inventory to sell if no other homes were put on the market. In San Diego, a typical market may be 3-6 months of inventory. We are currently under 30 days with homes under $300,000. This also seems to be the average priced home selling in San Diego. The absorbtion rate gets higher as you move up in price. When it gets below 60 days, start preparing to put your home on the market.
There is a frenzy of buyers right now in San Diego. As a seller, something to take advantage of. When in a seller’s market, not only will you get the most for your home, you will most likely have to do little to no repairs. This alone could save you a significant amount of money and add to your bottom line.
Another common mistake I see in this “sellers'” market is seller’s not preparing their homes to sell for top dollar. Ask your Realtor about simple and cost effective ways to spruce up your home to make it more desirable. This alone can create a buzz and generate a multiple offer situation which would in turn drive up the price of your home. Declutter, paint, clean, new flooring, and landscaping could dramatically increase your homes value. Your dollar to dollar return on these simple items could come back as much as 10:1. Meaning every dollar spent will bring you back ten.
I wrote this blog based on the current market we are seeing here in San Diego. These are the tips I give seller’s when they are considering listing their homes. They are also tips I have seen my buyers recognize while out looking. Please call me, Jeff Discher, with any other questions or if you are considering selling your home. I get homes sold FAST and for TOP DOLLAR!