Hub Telegram: If you ask ten random people who have recently sold their home what their experience was, you’re likely to get ten different responses. It’s likely you’ll hear the horror stories of a home being on the market for 6 months and the continuous price reductions. It’s also likely you’ll hear the story from a seller who had their home on the market for 24 hours and their home was able to generate multiple offers!
Since selling a home can present many challenges throughout the process, a seller who is able to generate multiple offers on their home should feel very fortunate. Some homeowners believe that a home that generates multiple offers is “lucky.” This is actually the furthest from the truth. A sellers who is able to generate multiple offers on their home has done their research and taken the proper steps to achieve this.
What are the steps and some of tips to help a homeowner generate multiple offers on their home?
Below are some of the most important steps and tips to follow to help great increase the chances that you can generate multiple offers on your home when selling it.
Understand Your Local Real Estate Market
Before you list your home for sale, it’s very important that you understand the current “state” of your local real estate market. Generally speaking, there are three “states” that a real estate market can experience. A real estate market can either be a sellers market, a buyers market, or a balanced market.
If your local real estate market is currently a sellers market than the chances that you will generate multiple offers on your home have significantly increased! A sellers market occurs when there are limited houses for sale and there is a surplus of ready, willing, and able buyers in the marketplace. Buying a home in a sellers market can be tricky and many buyers will understand that in order to secure their “dream home” they may very well be in a multiple offer situation.
On the opposite end of the spectrum, if your local real estate market is currently a buyers market, the chances you will generate multiple offers on your home are greatly reduced. A buyers market occurs when there are lots of homes currently available for sale and the number of buyers in the marketplace is low.
The best opportunity to generate multiple offers on your home will be when your local real estate market is either a sellers market or a balanced market. One of the best indicators to determine what “state” your real estate market is in is by analyzing the current market absorption rate.
A market absorption rate is a number that indicates how many months it would take to sell the remaining homes that are for sale if no others were listed for sale. The ideal number for a sellers market, balanced market, or buyers market will depend on your local real estate market. It’s suggested you consult with a local real estate professional for their insight and analysis.