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Sell Your House for a Higher Price
Millions of homeowners are asking whether this is a good time to sell their home. With house prices rocketing to record heights across the US and Canada, it may indeed be the right time to sell.
To figure out your house selling decision, think big picture about how your life will be if you move on. For many sellers, particularly babyboomers, the decision to sell now will give them funds to do whatever they want. And even for those in their 40s and 50’s, the money from the sale can elevate their lifestyle and create many nice options.
Buyers number one reason for not buying a home? They keep getting outbid. There is huge demand for your home, and the spectre of a housing crash is in buyer’s minds too.
There will come a day soon when the home buying trend will reverse and prices will drop fast. We’re not sure if there will be a housing crash or correction, but it won’t be nice when it happens.
When home prices peak, there’s nowhere else to go but down, and fast. Waiting too long might ruin your plans and you could get much less. In fact, if your house isn’t in good shape, this spring and summer will be the only year you’ll get a ridiculous price for what really is a fixer upper.
The decision comes down to how you feel about selling and moving and whether you’re emotionally ready for something better. And it comes down to whether the price is right this year. It would appear, given the charts below that this spring and summer is the ideal time.
You’re asking the questions about whether to sell, because you know the answer already. You’re likely set and you need some finally validation. It’s pretty easy to give! You’re so fortunate to be able to sell your home for such a grand price. The fruit of your own labors is about to return a nice profit.
Why You Should Sell Your House Right Now
Here’s some things you should consider before selling your house:
- housing prices reaching their peak because of a surge of end of pandemic buying frenzy
- what are the comparables in your neighborhood selling for?
- buyers are entering bidding wars and you’ll receive an incredible price
- vaccinations are being delivered and you can finally move somewhere you like
- demand is intense and no trouble finding buyers, so you can negotiate with your Realtor
- buy your next house at a low fixed mortgage rate
- start enjoying life again instead of just dreaming about it
- use the extra funds to buy property in the Ex-urbs
- use the extra funds to start a new business — good time for startups in 2021
- you’re ready for a nice vacation before you get back to your regular life (post pandemic life)
Sales are brisk and you’ll be receiving at least 15% over what homes sold for last year. It may be more if you’re in certain districts, states and neighborhoods that are on the hottest cities list.
Timing is Everything in Selling
This spring and summer, home prices will peak at astonishing levels. You’ll be selling at the ideal time when the most buyers are coming onto the market. Many have good amounts of savings and will pay cash. There is almost certainly going to be a bidding war. If your real estate agent is competent, then the bidding war will be intense. The extra amount their selling strategy generates will pay for their commission. You’ll take away a better price.
And you’ll need that money to buy again. If your strategy is to sell, rent, wait, then great. A few years of vacation would be nice, or just simplifying your life with in a condo or apartment nearby is good too. But if you’ve decided to move far away and work remotely, congratulations. You’re going for a great life and it’s definitely the right time to make that change.
Intense Bidding Wars
Buyers really want your home. Many will be young and trying to get their new families launched, while others are trading up or down to a house that fits their needs.
Redfin reports a 9th consecutive month of a 50%-Plus Bidding-War rate. The recovery combined with stimulus money plus a little “fear of missing out” demand will ensure the bidding war curve steepens.
“The number of homes for sale is at an all-time low and the supply shortage only seems to be getting worse. With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season.” said Redfin chief economist Daryl Fairweather.
And with such low mortgage rates, intense demand from buyers with financing, and a severe shortage of housing, bidding wars will be driving up home prices in most US housing markets and Canadian housing markets this spring and summer.
The Art/Science of Bidding Wars
No one has produced a definitive book on the art/science of bidding wars, although there’s lots of tips for buyers. If buyers should be able to game the process to avoid paying the true value of the property, then sellers should be able to ensure the full value of the property is on the table.
The buyers bidding war strategy is to either ensure they win the deal, or to undercut the real price.
For sure, bidding wars will happen this spring. And if a selling agent isn’t building a bidding war strategy, are they really creating awareness and representing the true value of the property? Is any other strategy only creating bargain prices for buyers, and lowering commissions?
Whether you believe in market supply and demand dynamics or not, homes for sale in 2021 will have a boatload of buyers. You’ll need to optimize this process and make the best of the situation. Buyers will want to know you can handle it.
Sellers from Florida to Texas to California will be seeing some lofty offers.
Do bidding wars instantly translate to much higher selling prices? Buyers might be more wary and cautious than they used to be but prices will be bid up. Realtors should be reveling in the opportunity to sell the house at what the buyer pool believes it’s worth.
How about Winning a Bidding War?
Buyer agents have the tough challenge of trying to win a bidding war. Here’s some tips from Cathy Naiser of Keller Williams Realty.
Comps don’t tell you what a house is worth. The buyers you reach dictate the selling price. And who doesn’t put up the sold over asking sign after the sale?
It’s definitely worth it to manage a bidding war intelligently and get that higher selling price. that your client wants.
Realtors are using the typical negotiating game, or building blitz type campaigns to build a buying frenzy, but they don’t have to do that this year.
As an investment, a seller’s goal is to get the best ROI as this money could get them out of debt, be their retirement fund, kids’ education fund, old age health fund, or bucket list fund. That extra money could help sellers revive their lives and get their health back. No more commuting!?
Pity sellers who sell their house in 3 days when a planned, strategic, 2 to 3 week bidding war strategy could build interest and focus buyer intention on one special 3 day period where buyers must make their best offer. You’re a salesperson and should have extensive expertise in sales strategy.
Realtor.com on Over Asking Prices
Realtor.com‘s advice is nothing new to you:
“The most fruitful strategy.. is to aggressively price the property roughly 5% to 10% below the going market rate. This will always generate more traffic to the property and give buyers a chance to fall in love with the home, when a higher purchase price might have kept them away initially.”
Here’s a few more Over-Asking Price Tips:
- hold back and tell buyers there are other offers, even though their offers aren’t huge
- approach investors to look hard at the property
- get the seller to update the house to eliminate negatives and play up the main selling value proposition (in Vancouver it might be the views, or just the location (tear downs or flips). You may even decide to change the style of the home (brick facades, or Asian, or Arabic styling could really pay off). See what the most attractive styles in Kelowna BC are right now.
- be proactive, and like you’re in charge: do the landscaping or roof repair yourself and deduct that from your commission which preempts any attempt by the seller to cut your commission.
- do blitz real estate marketing with Google Adwords, remarketing, select outdoor ads, and play up the property to all your Linkedin, Facebook, and Twitter connections. If your site is ranking well on Google and you’re getting big traffic as well, you can actually create the bidding war climate. Timing is everything so think about how you can market strategically.
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