Today we’ll answer a few important questions about selling in this market.
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Today I’m joined by Annie, one of our buyer’s agents, who is here to ask some questions about what it’s like to be a home seller in today’s market.
When a seller puts their home on the market, when should they expect to see offers?
If you live anywhere along the corridor, many times you’ll see offers on the first or second day. We try to put a house on the market on a Thursday and set the offer deadline to the following Monday. That way, it gives us plenty of time to see what kind of offers we’re going to get, and everybody gets a chance to submit their highest and best. Unless you’re above the $600,000 price range, you’ll almost certainly get multiple offers.
Are there a lot of escalation clauses?
We are seeing escalation clauses in the market. For those who don’t know, an escalation clause is a portion of the contract that essentially states you’ll raise your offer price to exceed the highest bid by a certain amount, up to a cap that you set. We always tell our agents to put their best foot forward, and this is a tool to help them do that.
Sellers aren’t going to address every little repair that the inspector finds.
What’s happening with non-refundable deposits and appraisal gaps?
Just a year ago, I never even saw nonrefundable deposits. In the past six months, however, we’ve been seeing a lot in our offers, especially in those homes along the corridor and newer homes. If a buyer feels like the inspection will go well, they’ll submit a nonrefundable deposit to show the seller that they’re serious about moving forward with the transaction.
In terms of the appraisal gap, if you get 15 or 20 offers, you’ll generally find a couple in the mix. The appraisal gap is essentially a statement that the buyer will agree to pay the difference between the appraised value and the sales price. That means if the appraisal comes in $20,000 short, the buyer will agree to pay that amount. For sellers, this is a great option that helps guarantee they’ll get what they want.
What do time frames for closing dates look like?
Closing dates are typically set between 45 and 60 days. The reason is to make sure that our sellers have time to find another house, even many buyers would be willing to close sooner than that.
What can we expect in terms of inspections in offers?
We try to set buyers’ expectations as we consider their offers. If an item comes up on the inspection report like hail damage to the roof or a faulty air conditioner, we’ll fix it, but we’re not going to address every little repair that the inspector finds. In the time it would take to address them all, the seller could have sold the home to 20 other people.
If you have any more questions about the selling process or real estate in general, feel free to reach out to us. We’d love to help you.