More so than any economic market that the average person deals with in their life, real estate prices ebb and flow. Sure, you might pay 50 cents more per gallon of gas than you did last summer, but real estate markets can sway in the tens of thousands of dollars. So, how can you cash in on a hot real estate market? If you’re thinking about selling soon, and you happen to find yourself in one of Denver’s hot real estate markets, this article is going to offer some important tips for getting the best price for your home.
So whether you’re looking to downsize and bank some retirement savings or use the profits for a down payment on a bigger home, here’s our guide on how to cash in on a hot real estate market.
A hot market is a seller’s market. This means that as long as your home is comparable to others in the same area of the same caliber, buyers are likely going to be knocking down your door to make an offer.
Any money you invest in prepping the house for sale is probably going to be money lost unless it’s spent to fix up a dealbreaker. So, don’t spend $10,000 updating the kitchen, because you’re probably not going to make that money back. But do fix up any major problems like mold damage or holes in the roof.
When trying to cash in on a hot real estate market, obviously the goal is to sell for the most amount of money. But, just because it’s a seller’s market doesn’t mean you can price your house outrageously high. Buyers are still going to seek out the best prices, so if your home offers the same basic features as four others for sale in the same neighborhood, buyers are probably going to pass it over if the price tag is $50,000 higher.
A good bet is to research what similar homes have sold for in the past months. Find the lowest and highest prices and consider those your boundaries, taking into account current listings as well. You can also use our home valuation tool in order to get a ballpark figure for what your home is worth.
If you price your home right in a hot real estate market, you should get multiple offers. Some might even come in higher than your asking price. The benefit of a seller’s market is that you can often be picky about your buyer. This is ideal because choosing the best offer doesn’t always mean choosing the highest offer.
Some buyers may offer a higher bid but also ask for seller’s assistance with closing costs. Others may not have secured a loan yet and are at risk of dropping out of the deal down the road. An experienced real estate agent will be able to help you sort through your offers, strategize potential counter offers, and choose the best one in the end.
Plenty of neighborhoods in Denver are ripe for selling. If you’ve been thinking about listing your home and want to learn more about how to cash in on a hot real estate market, get in touch with Walden Novak today and learn how we can help.