Avoid mistakes sellers make in a hot real estate market or L’eggo my Eggo!
Yes, it’s a hot real estate market. What exactly is a “seller’s market?” It’s pretty basic. If four people are sitting around the table and one frozen waffle pops out of the toaster, then three people won’t get a waffle. You might think the person who prevails and gets to eat the waffle is the winner. Nope. The person who first owned the waffle everyone wanted is the real winner.
Why? Simply because when there aren’t as many waffles as there are waffle eaters, those who own the limited waffles can command a premium for their waffles.That’s the real estate market right now. There are more people wanting homes than there are people selling homes. When one pops up, multiple people are at the table to grab for it. Good for the owner, right?
Seems like a fast, easy sale if you’re a homeowner. And it can be. But fast isn’t always smart, and easy doesn’t always stay that way. Home sellers lured by the siren call of Realtors’ success statistics or friends’ chirpy Facebook posts can be forgiven for assuming a fast sale is guaranteed (it isn’t) and an easy sale is the norm (it isn’t).
Ways A Hot Market Hurts Sellers: A fast sale isn’t always a smart sale.
If asked, most home sellers are more interested in a good price than a fast sale, but a quick offer is tempting. In a hot real estate market offers can come quickly. Sometimes multiple offers. The four people at the table grab for the waffle right away.
But, what if someone wants the waffle even more than those four people? And what if that person hasn’t walked into the room yet, or doesn’t know there’s a toaster at this table? That person would certainly have “paid” more to have it.
Problem: Fast offers aren’t always the highest offers and quick acceptance can result in sellers leaving money on the table.
Solution: A well-promoted real estate auction brings all potential buyers to the table at the same time to compete against each other, ensuring that the property truly sells to the person willing to pay more than all the others, not just the person who saw it first.
An easy sale doesn’t always stay that way.
In a hot real estate market getting an offer can be fairly easy. And when that happens quickly, it means less time living the tormented life of a home seller always in limbo. However, as anyone who has ever sold a home can attest, getting from offer to escrow closing can be fraught with difficulties and filled with unexpected surprises resulting in everything from additional seller hassle and expense to failed contracts.
The person who grabbed the waffle first may now demand syrup to be included, or request additional toasting time, or ask the waffle owner to butter it. Or he may simply decide he prefers an omelette and puts the waffle back (after everyone has left the table, of course!).
Problem: Traditional real estate contracts leave many options for buyers to make additional demands of sellers resulting in additional work and/or expense. Resolving these issues can delay the process AND erode the seller’s net. What’s more, at any point in the process that same contract often allows the buyer to completely walk away.
Solution: A professional real estate auction ensures a contingency-free sale with no strings attached. The purchase agreement is not contingent on financing, appraisals, etc. At an auction the property is sold in “as is” condition so no additional work is required of the seller. (Not because the property has problems; only because all bids must be on equal terms.) What’s more, the winning bidder at an auction puts down a sizable non-refundable deposit, to make a change of heart unlikely.
Choosing an experienced professional real estate auction company like Cates Auction & Realty to handle the marketing and sale of your home, land or commercial property will:
1. Provide maximum exposure. (Be sure all waffle eaters are at the table)
2. Use competitive bidding to get the highest price. (Not just work with the first to grab the waffle)
3. Enforce terms to simplify the process. (Be sure the waffle owner isn’t hit with any surprises)
Find Out If Auction Is Right For You
So sellers: No matter how you choose to sell, you truly have the advantage in this market. There aren’t enough waffles to go around. Getting offers isn’t the hard part. A sign in your yard (your Realtor’s or your own) can do that. If you want a fast sale (that’s also smart), and an easy sale (that truly is), you owe it to yourself to add auction marketing to your list of options. See if auction is right for you by submitting a free auction analysis or contacting us today!
It’s a hot market. You’re fortunate to have a waffle. Make the most of it!
— Greg Duncan, Vice President, Cates Auction & Realty Co., Inc.