Are the Bidding Wars Over?
Let’s face it, it’s fun to have a home listing during a seller’s market. When inventory is tight, even less-than-perfect homes invite the frantic bidding wars seen over the past few years. But as the economy slows down and interest rates increase, sellers are wondering if the bidding wars are over, and what that means for them.
First of all, bidding wars have occurred in every kind of real estate market. Well-positioned homes have always garnered attention and offers. What’s different in a seller’s market is that buyers are so desperate to find a home, that multiple offers seem to be normal on every listing. As the pace slows down, sellers need to adjust their expectations and avoid costly mistakes.
Seller Mistakes to Avoid in a “Normal” Market
· Bad Curb Appeal – Curb Appeal is once again important to making a good impression.
· Delayed Response – Don’t wait to respond to a buyer’s offer because you hope to have a bidding war.
· Unreasonable Demands – Buyers have choices now, be reasonable with the counter and contingencies.
· Highest Offer – Don’t assume that the highest offer is the best offer.
· Priced too Low or too High – Price the home correctly. Don’t play games with the price.
Finally, be patient. In a typical market, an average home is on the market 30-45 days. This is a change from the past few years, but a healthy real estate market benefits all parties.