Bidding Wars in Decline: Navigating Pitfalls in Today’s Real Estate Market
Are We Moving Past the Days of Intense Real Estate Bidding?
by Bobby Freeman Realtor
Participating in a seller’s market brings a certain thrill, especially when one has a property up for grabs. When available properties are scarce, even houses with multiple flaws become arenas for the fierce bidding seen recently. But, with hint of a slowing economy and rising interest rates, sellers are starting to question whether the days of bidding wars are now in the past and what this signifies to them as sellers.
It’s important to state that intense bidding has been a feature in all kinds of real estate environments. Well-situated properties have invariably drawn attention and bids. The unique attribute in a seller’s market is the purchaser’s rush to secure a home, such that multiple offers on each listing seem commonplace. As things cool down, sellers will need to recalibrate their strategies and evade common traps.
Here are the pitfalls sellers should avoid in a balanced real estate market:
- Ignoring the Local Market Trend – Failure to comprehend the local market dynamics and pricing your property accordingly can lead to underprice or overprice listings. Tracking recent transactions, current listings, and demand levels in your specific area can help you price correctly.
- Lack of Staging – The importance of home staging cannot be understated. Staging allows potential buyers to visualise how the space can be used and can accelerate the selling process.
- Limited Marketing – In a balanced market, a simple listing may not be enough. Employing various marketing techniques, including social media promotion, professional photography, and engaging videos can make your property stand out.
- Ignoring Necessary Repairs – Overlooking minor repairs can be a turn-off for potential buyers. Ensure all necessary repairs are done before listing the property for sale.
- Being Unavailable for Showings – Potential buyers will want to view the property, sometimes on short notice. It’s important to be flexible to accommodate these showings to avoid missing out on potential sales.
- Refusing to Negotiate – In a seller’s market, it’s common to stick to the listed price but in a balanced market, buyers are more likely to negotiate. Sellers must be prepared to engage in negotiation to reach an acceptable sale price.
- Incomplete or Inaccurate Listing Information – In a balanced market, attention to details in your property listing is key. Make sure every detail is accurate and clearly conveys the property’s features and benefits. Incomplete or incorrect information can lead to missed opportunities.
- Failing to Disclose Known Issues – Make sure to disclose any known issues with the property, as failure to do so can lead to legal issues further down the line. Honesty is the best policy.
- Choosing the Wrong Real Estate Agent – Not all agents are equal. The right agent can make the difference between a quick sale and a prolonged listing. Make sure to select a real estate agent with a proven track record in your specific market.
Lastly, patience could prove to be your best ally. In a typical market, the average property stays listed for 30-45 days. Though this is a shift from the recent past, a stable real estate market is beneficial to all involved parties.
All these missteps can be avoided with a mindful strategy and careful planning, making the transition from a seller’s to a balanced market smoother and more profitable.