“Procrastinating home sellers who don't list their home soon after getting wind of record-level sales, multiple offers, and high bids that define a hot seller's market, could be left twisting in that very same wind,” says Broderick Perkins, a noted Real Estate Columnist.

Waiting too long is a one big mistake that sellers make.  The caveat is not to take too long to prepare or you might miss the market.

In a seller's market, sellers often get greedy and attempt to push the market with an overpriced home.  If they get greedy and price their home too high it may take longer to sell or not sell at all.

My personal opinion is that sellers should price toward the high end of the price range, but not above the range. A home priced above the range gets fewer showings therefore less bidding, which is where prices get driven up.

Some agents lean the other way and price their homes toward the low end to generate bids that will drive the property's price up.

Agents generally agree that adding curb appeal and sprucing up a home by cleaning, removing clutter, painting, landscaping and updating fixtures, windows, doors and performing other cosmetic touches, puts your home in the best light at a nominal cost for a big pay off.

Generic improvements that enhance your home's functionality, efficiency and aesthetics -- all to give it a more contemporary feel -- also means completing deferred maintenance and making sure all the components are in good working condition.

Even with competitive bidding, the house that shows the best will get the highest price.

Agents in sellers' markets also advise:

·         Use the Multiple Listing Service (MLS) for maximum exposure.  The biggest mistake is to not properly expose the property to the market.

• Keep buyers' agents competitive. Don't reduce their commission to increase your take home.

If a buyer goes out and finds three properties that they are interested in and these properties offer a $500 commission, a 2.5 percent commission and a 3.0 percent commission, what property would any human being push and which property would they avoid? The lower the compensation the less motivated the buyer's agent is. If a seller wants to reduce their cost, the seller should make the reduction on the agent representing the seller and not touch the buyer's agent's compensation," said Calhoun.

• Instead of accepting back-up offers, be prepared to return to market for a higher price.

In a backup situation, the buyer can continue to search for another property without obligation. If that buyer is still available when the first sale fails you can still bring them back into the picture.

• Manage multiple offers fairly, don't jump at the first over-list bid and keep your options open.

Don't accept the first offer on the first day, but don't wait too long either. This is the same regardless of a hot or cold market. If homes have increased 10% and the seller prices based on comparables and takes the first offer, the seller misses 10%. However, if the property is exposed to the market, the buyers will bid up to that 10% increase.

• Look for mortgage-approved buyers who have the cash to prove they are ready to buy.

If a seller gets multiple offers, the highest price is not necessarily the most important item. Down payment, appraisal contingency, the buyers' motivation to buy, are all-important. Also, sellers that want no inspection contingencies are exposing themselves to unnecessary legal exposure.

 

This information is designed to provide accurate and authoritative information in regard to the subject matter covered. It is given with the understanding that the author is not engaged in rendering legal service. If legal advice or other expert assistance is required, the services of a competent legal person should be sought.