Real estate is hot in many areas of the nation. The demand for homes in urban and suburban areas has created seller’s markets throughout the country. A seller’s market means it’s easier to sell a house than to purchase one due to conditions such as property scarcity, gentrification, inflated pricing or rampant foreign investment.
In Michigan, the hottest real estate markets are in places as diverse as Detroit and Grand Rapids. While it may seem like a prime time to list your home in the state, be aware that you may still face struggles when offering your home for sale in a seller’s market. Consider the three situations listed below, and plan your real estate sale to protect yourself from each one.
1. Solid Buyers Reject Your Home
Even in a seller’s market, you must present and price your home to maintain the interest of eager lookers. Many sellers make the mistake of thinking a hot real estate market negates the need to perform necessary repairs and maintenance on their homes. No matter how rare homes are in your area, if mold is growing in the tub or the yard is cluttered, serious buyers will wonder how lazy you were about other home tasks.
Stage your home before showings by opening window treatments and freshening up the surfaces and floors. Landscape and maintain the yard. Be ready to offer discounts for serious home faults.
You must also establish an introductory price that’s realistic if you want serious offers. Don’t make the mistake of thinking you can trick buyers into paying a premium for your property and then just lower the price if it doesn’t work. Your real estate agent is your best adviser when it comes to setting your property’s selling price. He or she will carefully analyze recent sales of similar properties to establish a fair and competitive price.
2. A Rapid Sale Leaves You Homeless
If your property is well-maintained and competitively priced, it can sell as soon as you put a sign in the yard. You may be flooded with offers you can’t refuse before you’ve even chosen a new place to live.
Before listing your home in a seller’s market, prepare a list of all of the tasks you’ll need to do to move out of the home. Begin packing your belongings and storing the boxes neatly in the home or in a temporary rental unit. Clearing away your personal belongings in advance helps stage your home and get some of the moving tasks out of the way.
Decide if you want to purchase a new home right away or rent an apartment for a few months. Some areas have waiting lists and lengthy application processes for apartments. Speak with a few leasing agents and property management companies in advance to see if you can be pre-qualified for a rental unit in the area where you plan to move.
In a seller’s market, it’s OK to negotiate a longer move-out period after closing if you need more time to gather children, pets and household furnishings. Tell your real estate agent in advance how much time you’ll need so the details are included in your sales contract. You may be able to negotiate a temporary rental agreement with the buyers to give you more time to relocate.
3. Rushed Agreements Are Disastrous for Your Wallet
Nothing is more frustrating than realizing you signed a real estate contract that isn’t in your best interest. This often happens when sellers are overcome by generous offers on their homes. Unless you read the fine print, you may be unwittingly saddled with an unfair portion of closing costs or unexpected fees.
The benefit of having an agent on your side is the protection of legally binding contracts for all parties. Your agent will help you decide who will pay various closing costs, which specific repairs must be made before closing and how long you have to vacate the home after the closing date.
Trust Jeff Glover & Associates Realtors to help you price and stage your home for successful sale. Contact us today for experienced, professional real estate assistance whether you’re selling or purchasing a home in Michigan.