Are The Bidding Wars Over?
Are 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
List of Services
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Bad Curb AppealList Item 1
Okay so that image is a bit on the extreme side but this is basically the vibe that home buyers get when they first pull up to a less than manicured lawn. At one point, when choices were scares this home would have had at least ten bidders but now curb appeal is once again important and sellers must put in the work to making a good impression.
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Delayed ResponseList Item 2
In the last few months sellers had the ability to delay responding whiile other offers came in. This drove buyers (and buyer's agent's) crazy but it was what it was! Now things have changed. Don’t wait to respond to a buyer’s offer because you hope to have a bidding war..
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Unreasonable DemandsList Item 3
Understand that this is not the market of the last few months. Buyers have choices now, Be reasonable with the counter and contingencies lest they move on to the next.
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Highest OfferList Item 4
Now this is just a friendly reminder
because this is typically the same with almost any market. Don’t assume that the highest offer is the best offer. Go for "highest & best offer" rather than just the "highest offer" -
Priced too Low or too High
Perhaps the last year has conditioned sellers to price as high as they possibly can and see waht happens. This market, however, is not the same market that your bestie Sue and grandmama Patty sold thier homes in. The market has changed and our strategies must change with the times. Price the home correctly. Don’t play games with the price.
Finally, be patient. In a typical market, an average home that is priced correctly is on the market for about 30-45 days. This is a change from the past few years, but a healthy real estate market benefits all parties.
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