If you’re browsing through Realtor.ca you may notice the rise in house prices. With fewer houses on the market, and selling quickly. Many cities in Nova Scotia now have a sellers’ market.
What is a sellers’ market?
A sellers’ market happens when the demand for homes outweighs the supply. More factors than just inventory that determine the sellers’ market such as lender interest rates, incentive programs, unemployment rates, immigration, and economics.
A seller’s market can be great for the home sellers who might receive multiple offers, fewer market days, and higher sale prices. Home sellers have the advantage with an eager pool of buyers hoping to purchase the home.
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The competition can lead to a bidding war and buyers may abandon common conditions like home inspection and financing approval. Properties can sometimes be bought by all-cash buyers who can close faster, not requiring home financing approval.
Attracting multiple offers
Some sellers believe that in a sellers’ market you only have to put up a for-sale sign. Although it can be easier to sell in this market, it still requires strategy. Review the local market, the competition, and price your home accordingly.
Preparing your house for the market will still require cleaning from top to bottom. To get the best price possible, it’s best to replace any worn-out carpeting or torn flooring. Even though some buyers may overlook these defects, a well-presented home will increase the competition.
A fresh coat of paint in neutral colors and home staging will make your home more appealing to buyers. A home stager can help present every room in your home and show off the best features. Declutter and packing unused items and place them in storage. When offered a quick close you are in a better position to accept and meet the closing deadline with less stress.
Selecting the best offer in multiple offer situation
When dealing with multiple offers your Realtor will help explain negotiating strategies to help you select the best offer. The strength of an offer should not be based solely on price. If you wish you can select one offer and counter if required for the best possible conditions and reject the others.
Price, deposit, and contingencies
Review all the offers for the price, deposit, and whether the offer requires financing. Do any offers waive buyer conditions like inspection or other contingencies? A firm offer wins over a higher-priced offer because the seller won’t be left waiting for the removal of conditions to firm up the sale.
An offer with a healthy deposit shows that the buyer will likely be approved for financing. Deposits are held in a trust account until closing. Few buyers are willing to risk losing a large deposit during the home buying process and more likely to complete the process.
Closing date and condition dates
Closing dates and conditions dates are also relevant. The longer a seller has to wait for conditions to be met, the longer you have to wait for the sale to firm up. A long closing date could put the sale at risk should the buyer’s financial situation change before or at the closing date. The seller would then have to put their home back on the market and start the process all over again.
Find out what homes in your neighborhood are selling for. Free monthly report by email showing current listings, recent sales & market stats. Go to www.HalifaxHomebeat.com
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here