Selling a home or investment property can be a daunting task. You want to get top dollar for it of course, but it’s also nice to get the money and close the sale as quickly as possible.
There may be certain instances when selling your property fast is actually a good idea, but more often than not, you’ll be leaving money on the table by selling too quickly. The balance between a quick sale and the right price can be difficult. Read on to figure out when it’s a good idea to sell your home fast and why.
Real estate is very market dependent. High demand but low inventory drives real estate values up and may lead to bidding wars and fast sales regardless of price. Other markets may have a surplus of inventory with low demand, which leads to lower real estate values and longer days on the market before the property is sold.
How fast a home will sell will greatly depend on where the property is located and what the market is like at the given moment. In a balanced market, it’s fairly common for a home to sit on the market for sale for 30 to 90 days before receiving an offer. Then there’s the closing timeline, which can add an additional 30 to 45 days if the buyer is getting a loan. This means a homeowner or investor wanting to sell could be waiting three months or more to cash out on a property.
Selling a home fast means you adjust the terms, most commonly the price, to incentivize buyers to make an offer and close quickly.
Obviously there are times when money isn’t everything. If you have an amazingly lucrative job offer that necessitates a quick move, you can simply look at the money left behind as money to be made in your new location. The home could be distressed and rather than repair it and list it on the market, it’s easier to sell it quickly for cash now. If you’re selling due to health issues, being out of work, a divorice, or death, it may also be easier on you, emotionally and financially, to simply sell quickly. Or maybe you’re in a tough financial position and need cash quickly; selling fast can also provide you with money in as little as a few weeks. In all of these instances, there’s a greater need to sell the home fast than there is for receiving the highest possible amount.
Selling fast in most instances is not a great idea if you’re trying to get the most money possible. However, there are times, for example, in a seller’s market, when selling fast could be a positive strategic move to get the most money possible while still closing quickly.
In this instance, the property owner would list the home slightly under current market value to incentivize multiple buyers to make offers. It’s fairly common, especially in a strong seller’s market, for there to be multiple offers driving the final sale price to or even beyond the market price. In this instance, buyers are motivated to close as quickly as possible, putting their best offer forward, and it can lead to a rather quick sale.
But if the market is balanced or shifted to a buyer’s market, selling fast will necessitate a lower list price to motivate buyers to act and close quickly, which means less money for you.
Cash sales are common for “a fast sale,” but as mentioned before, selling fast doesn’t always mean a price reduction. The key to getting top dollar in a reasonable time frame will be to get as many people into your well-presented home as possible. Take the time to get lots of quality photographs, write an enticing listing description, get it listed on as many sites as possible, even mention the open listing on social media, and consider having an open house to get people to physically visit your home. Selling a property can happen relatively fast, and getting a good price is absolutely achievable if you set the stage properly.
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