Sellers, Here’s What to Expect From the 2022 Spring Market
By now, you’ve probably heard that it’s a seller’s market. When combined with the fact that spring is usually the busiest time for real estate, the 2022 spring market is shaping up to be especially intense. If you’re thinking of selling your home over the next few months, here’s what you need to know before getting started.
Here’s what to expect from the 2022 spring market
1. List low to sell high
Too often sellers mistakenly think that in order to get the highest possible sale price, they need to make their list price as high as possible. However, in practice, pricing your home too high can actually harm your chances of getting a higher offer.
It all boils down to the fact that potential buyers compare your home to other properties in the same price range. If your home has less to offer than other homes that are priced similarly, your home will likely get passed over for other options. To make matters worse, once your home sits on the market for a while, it can become stigmatized, meaning that buyers will be more likely to put in low-ball offers — if they decide to make an offer at all.
Instead, it might be a better idea to list your home a little lower than its true list price. The low price will pique buyers’ interests, which will increase your chances of getting multiple offers and entering into a bidding war. At that point, there’s a good chance that the bidding war will drive the price up to where you want it to be.
2. Prepare for tons of showings
In this market, if you list your home at the right price, you should prepare for an onslaught of showings. Right now, inventory is at a massive low on a national scale, which means that there are multiple buyers competing for the same, few available properties.
As the seller, your job is to accommodate those showings. After all, few people will be willing to make an offer on your home if they haven’t had a chance to see it in person first. Still, accommodating showings can be tricky. You’ll need to be out of the house while it’s being shown, which gets tough if you have pets or kids to worry about.
With that in mind, it’s a good idea to make plans that will keep you away from your home while it’s being marketed for sale. While some sellers take day trips that will keep them away from their homes during business hours, others simply decide to go away for a few days. Ultimately, what you decide to do depends on your comfort level.
3. Expect multiple offers
When your agent puts the home on the market, they will likely set a deadline for offer submission. Usually, this deadline falls after a few days of showings. If you’ve had a lot of interest in your home, you’ll likely have multiple offers in hand by the time the deadline arrives.
While this is certainly a good problem to have, going through multiple offers can sometimes be a bit overwhelming. In this case, since each offer will be different and everyone has multiple factors to consider, it can be a lot of information to take in all at once.
To that end, you’re going to want to have a clear idea of your motivation before you sit down to go over offers with your real estate agent. Additionally, make sure your agent knows your motivation as well. That way, they can curate the offers that might make the most sense for you to accept.
4. Consider factors other than sale price
Lastly, sellers have a tendency to believe that sale price is the ultimate factor when it comes to selling their homes. There is no doubt that your bottom line is important. However, you’re going to want to consider other factors as well and look at each offer as a complete package before making your final decision.
For instance, cash offers are often a surer bet than offers where the buyer has to obtain financing in order to purchase the home. It may be worth accepting a cash offer that is lower than the highest financed offer in exchange for the certainty that the sale will go through. If you don’t have any cash offers in hand, look for offers where the buyers are willing to sweeten the deal by doing things like cushioning the appraisal or paying a portion of the transfer tax.
If you’re not sure how each of those considerations will benefit you, don’t worry. Your real estate agent should be able to explain them to you. Your job is to keep an open mind and to weigh each offer fairly before deciding which one makes the most sense for you to accept.
The bottom line on the 2022 spring market
At the end of the day, the 2022 spring market won’t be that much different than past years. It will just be more intense. While the spring market is traditionally a time that brings tons of buyer activity and interest, this year will be an overdrive. As a seller, you can use that to your advantage. Use these tips to help you understand how to get the most value out of your biggest asset.