No doubt about it, many Intown Jacksonville real estate markets are experiencing “seller’s markets” (Murray Hill is the exception to this). What is a “Seller’s Market” and how does it affect your ability to sell your home and get the highest price possible?
A “Seller’s Market” means that there are more buyers shopping than there are homes for sale. This is good news for those wanting to sell. But how do you price your home in this type of market? Can you price it for whatever you want?
There are several strategies and many depend on what your goal is.
Time is of the Essence
If you need to sell your property as quick as possible, maybe you have a job change or a family situation, then price it just under market value. You will get an offer quick, probably even multiple offers.
You Want to Maximize How Much You Can Make
If you want to take advantage of the shortage of homes and try to make as much as you can off the sale then price your home about 10% over market value. This overage will allow for time on the market but should still keep you close enough that you won’t run into appraisal issues.
Do Appraisals Matter In a Seller’s Market?
YES!!! Appraised value always matters! Any buyer getting a loan will have an appraisal contingency. The bank will not lend for more than they property appraises for. From the National Association of Realtors:
- Sale prices are not based on what owners “need”: When an owner says, “I must sell for $300,000 because I need $100,000 in cash to buy my next home,” buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be successful.
- Sale prices are NOT the whole deal: Which would you rather have: A sale price of $200,000, or a sale price of $205,000 with an agreement that you will make a “seller contribution” of $5,000 to offset the buyer’s closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?
A “Seller’s Market” is a great market to sell your property in, but be realistic in your asking price and what your real goals are if you want to get here…