Advice for House Sellers

As we enter the spring selling season, sellers in Suwanee should be aware of both the positive and negative aspects of today’s market. While the market presents opportunities, that same market may present road blocks to a successful transaction. Understanding both the positive and negative possibilities is vital to finishing the experience with a successful closing.

It is important to know that we are no longer in a buyer’s market. The current number of homes in inventory, including the number of foreclosures that are available, are down significantly. This shortage of homes, along with a healthy number of buyers, is a basic supply and demand situation. More demand and less supply equals increasing
prices.

Some will say that the market has recovered 10-15 percent of the losses we experienced since the market began its crash in 2007. It has also been said that we are back to prices from 2003. This increase will give many sellers a fighting chance to successfully sell their house. The value may still represent a loss in equity, but for many, breaking even and purchasing another home is within reach.

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When I sit with sellers, I tell them we have at least two challenges. The first challenge is to price the home correctly. With an aggressively upward market, there is a fine line between getting the most for the house and pricing aggressively enough to quickly get an offer.

New construction is back, so the home has to be priced based on its condition and upgrades. The second challenge actually comes after we have a binding contract. That challenge is getting an appraisal that matches the sales price. While the buyer lives in today’s market, the appraiser looks in the rear view mirror at comps that may have sold as far back as 6 months ago. The buyer has less foreclosures and a higher priced market to choose from while the appraiser has 6 months of history to consider.

In many cases the appraisal comes in lower than the actual sales price. A lower appraisal can put the deal in jeopardy. Next week I will discuss what happens when an appraisal comes in below the contract price.

For now, just realize that the market is more of a seller’s market. Buyers are still out there in high numbers. Interest rates are still historically low. If you are a seller that failed to sell your house in the last 5 years or never tried due to market conditions, now might be the time that you could make a successful run at moving on. If you do, you will be the next buyer trying to buy before prices and rates go up any further.

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For more information, call Scott Lacy, email him at scottlacy@kw.com or follow @ScottTheRealtor on Twitter.