Tips for selling your house in a rising market

As prices climb, sellers are taking notice and gaining confidence in the market.
Zillow
Jul 16, 2013

By Monte Mohr

Tips for Selling Your House in a Rising Market

Throughout the last several years, a growing number of would-be home sellers patiently sat on the sidelines waiting for the housing market to rebound before attempting to sell their homes. And now that the market is recovering, many of these home sellers are ready to enter the market.

This is great news with respect to the recent shortage of available inventory. For months, the already suffering housing inventory situation grew bleaker as buyers re-entered the market which created an even greater lag in inventory. That shrinking inventory fueled price increases nationwide, and in some areas even brought back bidding wars.

As prices climb, sellers are taking notice and gaining confidence in the market. In fact, there is enough seller confidence that more and more people are deciding to put their homes on the market. And with more sellers listing their homes, the inventory crunch is beginning to ease. Not only that, but rising prices are helping people climb out a negative equity situation.

So if you are thinking about selling your house, how does a rising market impact your strategy? Well for starters, you need to be realistic. Prices have risen, but the current rate of appreciation, which has seen 5 percent annual gains, cannot sustain itself. You should expect a more realistic gain of 3-4 percent annually.

In reality, as more inventory hits the market, competition will level the playing field. Sellers still need to be very careful to not overprice their homes. Although prices have come up, they are not where they were prior to the market crash.

Appraisals are another byproduct of a rising market that sellers should consider when determining their sales price. When markets are experiencing gains, appraisers have a difficult time using historical data to assign accurate values. Since the vast majority of home buyers will have some sort of mortgage needs, they will be bound to the appraisal process.

The lack of valid comps can result in a low appraised value despite an increasing market. Many times appraised values are months behind a trend. Even if a home seller finds a buyer who agrees to pay a higher price, it may be rendered invalid because of a low appraisal. The only way to escape the appraisal process is to find a cash buyer.

This is undoubtedly a great time sell because prices are rising and interest rates are still relatively low for buyers, but it is critical that sellers get into the “reality zone” and be realistic with their expectations. If they can do that, they will be poised for a success real estate transaction.

Monte Mohr has sold more than 2,500 homes, making him one of America’s top Realtors for the last 25 years. This experience has given him a unique perspective on the Nashville real estate market where he can be found at www.tennesseedreamhomes.com. He is also a regular contributor of real estate information to Nashville’s NBC affiliate station, WSMV Channel 4. To learn more about Monte Mohr’s experience as a real estate agent, to get free advice about your biggest real estate challenges or to request an interview, contact him at Info@TennesseeDreamHomes.com.

Comments

TOPGUN01

we have sold 8 homes ourselves!use craigs list and run an add in your local papers for the weekends add!and a sign in your yard!use a title company I use tucker.you can get contracts fron your closeing agentlike TUCKER.A HOUSE SELLS IT SELF!IF YOU DO LIST IT WITH A BROKER ONLY GO 90 DAY,S AND ASK THEM IF THEY WILL HAVE AT LEAST ONE OPEN HOUSE!

TOPGUN01

A LOT OF YOUR BROKERS WANT TO LIST YOUR HOME BUT WILL NOT SPEND A DIME ON ADVERTISING!THEY PUT IT IN THE MLS LISTINGS AND HOPE FOR THE BEST!LOOK AT YOUR PAPERS ADDS AND SEE WHO SPEDS ON ADVERTISING?NORMA S IS A GOOD ONE TO LIST WITH! C- 21 NORWALK

JudgeMeNot

i forgive you for being a CAPS LOCK a$$hat.

Now The Rest of...

Might want to take a keyboarding, spelling and grammar course before offering any future advice. As for Norma, If I can't say anything good I'll stop at that.