If you have been thinking about becoming a home seller, you may want to seriously consider taking advantage of the current housing market. According to the Rhode Island Association of Realtors, “Rhode Island’s single-family home sales were up 9.1% year-over-year and the median price of those sales hit $334,900, 13.5% higher than that of the third quarter of 2019.”
This kind of real estate market is known as a “Seller’s Market”. So, what is a seller’s market and what does this mean for home sellers and home buyers? A seller’s market is defined as a real estate market that has a demand for “Homes for Sale”, which is greater than the number of homes listed on the market to sell. What this means as a home seller is that your home will have less competition, more interest and likely several offers quickly. You might even get offers over your asking price!
In a seller’s market, prospective home buyers have limited options because of the low inventory of houses for sale. And, typically, home buyers are eager to see homes as soon as they appear on the market, as not to miss the listing, and then potential home buyers will move faster in presenting an offer. “I don’t think I’ve ever seen a stronger seller’s market going into the end of the year. For those thinking of listing their property for sale, there is definitely no need to wait for spring. The market hasn’t slowed down,” said Shannon Buss, President of the Rhode Island Association of Realtors.
As a home seller in a seller’s market, we’ve collected a few tips to help you navigate, what is sure to be a fast-paced home selling process.
4 Tips for Home Sellers in a Seller’s Market
Get an Experienced Real Estate Agent
Especially in a seller’s market where transaction will happen faster, choosing a Realtor who has proven experience in assisting home sellers will prove to be the best decision you make. It is important in a seller’s market to hire an agent that will be easily available to you. As a home seller, the home selling process moves quickly when inventory is low, so having a responsive agent will be the key to your success. The Realtor you choose must have excellent negotiating skills and should be able to provide you with examples of their experience handling multiple offers and bidding wars, such as Noonan Lombardi Realtors who offer over 50 years of brokerage and real estate experience & knowledge collectively.
Be Realistic with Your Listing Price
A good Realtor will help you figure out just the right listing price for your home. Too high and interest will decline, too low and you will likely miss out on a higher return on investment. You may have already thought of a listing price for your home. However, this is an important discussion you will have with your real estate agent. It is important to keep in mind that today’s home buyers are well informed and have done their research. Over-priced homes can turn away prospective buyers even when inventory is low.
Get Ready to Show Your Home
Home buyers actively watch for new listings online. In a seller’s market, the first few days a new home listing is live, there will likely be numerous inquiries. Prospective home buyers and their real estate agents are aware how fast homes are moving in their price range and want to be the first at your door. In a seller’s market things can happen quickly and you need to have a plan to address those situations, which is why partnering with the right Realtor makes all the difference.
As a Home Seller, Be Prepared to Negotiate
Your Realtor will assist you with this process, which is also a huge benefit. In a seller’s market you may receive several offers that you must consider. Not only will you have to consider the price offered for your home, but you will also have to make decisions based on closing dates and other conditions of the home sale. These details are standard for Realtors, but unless you specialize in selling homes, they will not be so standard for you. Be sure you choose to partner with a Realtor you can trust and who gives you the time and information you need to make the right decisions for you.
A seller’s market creates more competition for prospective buyers, including an influx of out-of-state home buyers. As a seller you may find several buyers interested in purchasing your home. The more buyers, the more offers. This can lead to “bidding wars” and possibly a higher price for your home.
According to the RI Association of Realtors, “From April (2020) through September (2020), Massachusetts buyers who purchased a Rhode Island property increased 15.8% year-over-year, New York buyers grew by 30.6%, and Florida buyers increased 33.8%. The only decrease was seen by Connecticut buyers who numbered 167 this year, compared to 221 from April through September last year.”
And, according to Shannon Buss, President of the Rhode Island Association of Realtors, “The [COVID 19] shutdown last spring curtailed what would likely have been another record-breaking year for Rhode Island home sales but the silver lining was a boost from those people from out of state who made the decision to buy in Rhode Island. If you’re going to work remotely, this is a great place to do it,” said Buss. If you are ready and realistic, a seller’s market is the ideal time to list your home.
Are You A Home Seller?
We’re Your Southern New England Realtors for Life
Working with an experienced real estate team will be an asset to homeowners. A good realtor will guide you through the entire real estate process and alert you to items that will need your attention. At Noonan Lombardi Realtors, we present options to home buyers and home sellers that they may not have considered otherwise. The best thing you can do as a potential home buyer or home seller is to work with a great realtor sooner rather than later.
Noonan Lombardi Realtors specializes in real estate across Southern New England, including Rhode Island, Massachusetts and Connecticut. From rentals and property management to buying and selling homes, we’re the team of realtors and brokers you can trust for the best possible real estate experience. Call our team today (401) 580-8672 or find us online at www.NoonanLombardiRealtors.com.