Supply and demand affect the real estate market, just as it does other markets. It affects everything from the price of your house to your negotiating ability. When it’s a seller’s market, it is a good time to sell your house. 

The house is likely to spend less time on the market and you have the potential of receiving multiple offers which could drive the price up. Even when demand skyrockets, you still need to do your due diligence to ensure you’re selling for the best possible price. 

What is a seller’s market?

A seller’s market occurs when there is a strong demand. Factors like more buyers, low interest rates or low inventory can cause this demand. Buyers have to compete with one another for a limited number of homes and multiple offers are common. This gives sellers an advantage as they can negotiate better deals. 

Nooras Mikha Realty is a successful licensed Poway real estate company with the expertise to assist sellers with legalities, home showings, and any other buyer-related issues. Here is some advice they have if you’re selling your home in a seller’s market. 

Cut your budget for cosmetic upgrades

Buyers will often overlook cosmetic issues and outdated interiors in a seller’s market because they have fewer homes to choose from. If you want to make any repairs, go for paint and carpet because they are the cheapest repairs that offer the most value. Putting in a brand new kitchen is probably over-investing. 

There are plenty of inexpensive ways to make your home look more attractive, such as painting the exterior, clearing up the yard and putting pots of colorful flowers near the front door. 

Plan your next move before you sell

Your property may sell faster than you anticipated. Start preparing for a move when you’re making plans to list your home. Donating, selling or discarding items you no longer want can help to clear out clutter and make your home appear more spacious. 

You may consider renting for a while until the market shifts to a buyer’s market. You could also possibly negotiate to stay in your home as a renter after you sell it. 

Price your home strategically

When there’s a demand, it can be tempting to set a high listing price. However, overpricing your home could mean it sits on the market and this can put off potential buyers. Even if a buyer agrees to a sky-high price, a lender won’t approve a loan that’s higher than a home’s appraised value. 

You will need to find a balance as a price that’s too low is not a good idea either as it means you won’t benefit from the seller’s market. A real estate agent can help you determine your home’s fair market value taking its size and condition into account. 

If you price your home at slightly below its current market value, it may start a bidding war where you get plenty of offers and a fast sale at or above the listed price.

The highest offer isn’t always the best offer

A cash offer may not be the highest offer but it may be best for a number of reasons. There’s no need to prove value to the lender. 

You don’t have to worry about a low appraisal value threatening your deal. This is beneficial in a hot market where prices are rising faster than appraisers are prepared to recognize. A cash offer will also speed up the deal and you may expedite your closing date by up to a month or more.