Currently, we’re in a seller’s market with extremely low inventory and as a result, some people expect that their homes will sell in a day or two – and when that does happen, they’re super excited.
But should selling your home that quickly be the goal?
I heard an agent the other day talking about how excited he was because he’d sold a home over the weekend, before it even hit the Multiple Listing Service (MLS).
“You’d do the same,” he said.
But no, I wouldn’t.
While it might seem exciting to receive and accept an offer so quickly, you should be aware that by doing that you could be losing out on maximizing your selling price.
In an appreciating market where there are more buyers than homes for sale, having your home fully exposed to the market is incredibly important. First, you need a marketing plan that incorporates traditional and digital methods, creating total market exposure. It should target neighbors, potential buyers, and successful local agents, and ideally, your home should be viewed by many people prior to acceptance of an offer. The agent you hire to sell your home should be able to fully articulate the strategy and how they will reach various target audiences to maximize the exposure and selling price.
With the current low inventory market, it’s increasingly popular for agents to utilize “coming soon” marketing. They pitch the concept to sellers as an attempt to “create buzz” for the home. In reality, it creates a greater opportunity for the agent to represent both the buyer and the seller without fully exposing the home to the total market and creating the greatest likelihood for the highest offer.
This past weekend, we held open a new listing at 619 W. 37th Street in the Wrigley Heights neighborhood. It hit the market last Wednesday, May 9th, and the first showings were at the open house on May 12th. We had 28 groups of people sign in and another 8 agents who came in with their clients. In the two days following, we had additional showings and today, May 15th, we reviewed 8 offers with the sellers, issuing multiple counter offers. By the end of the week, we’ll have an accepted offer – at least 6% above the asking price of $625,000.
Meanwhile, several blocks away, another agent held an open house on Saturday for a home that was also listed on the MLS last week. The “agent remarks” for that listing also stated that there would be no showings until after the open house. But by the time the open house rolled around, the seller had already accepted an offer and so was only accepting backup offers.
We frequently see homes entered in the MLS as already in escrow with “0” or “1” day on the market. Many, many times, the offer accepted is below market value and below what the seller could have obtained if they’d hired a reputable agent who provided full market exposure for the home before recommending they accept an offer.
If you’re considering selling your home, ask questions about the agent’s philosophy on “coming soon” marketing and find out how frequently they represent both seller and buyer. You want to make sure that their philosophy on timing for MLS entry, marketing, and offer review will benefit your bottom line rather than theirs.