25 Apr 6 Positives and Negatives When Selling a Home in Spring Market
As soon as our Minnesota weather gets warmer, the Real Estate market goes from 0 – 120 mph in the blink of an eye. It’s often said spring is a “Sellers’ Market” but there are pros and cons. I’ve gathered some of the most common positives and negatives about the spring market.
Positive – The Demand for Showings
Much like Facebook, Instagram, Twitter, or whatever your social media of choice is, it feels great when your home gets attention. Every showing is a “like” or “heart” on your home. Spring market usually means a lot of attention and interest in your home. March, April, and May are the most profitable and speediest times to sell a home. There is fierce competition between buyers which often ignites bidding wars and multiple offers on homes.
Negative – Sellers Face Competition Too
The competition in the spring market is not just fierce for buyers. Sellers are competing with all of the other homes on the market. The National Association of Realtor (NAR) has found 40% percent of an average year’s total home sales happen in May, June, July, and August. There will be demand for your home but it will also be compared to many other homes. Give yourself the best chance by thoroughly preparing your home before listing. Thoughtful staging and decluttering are two great ways to get the most from each showing. I have a few posts on getting your house ready. Check the links at the bottom for more advice.
Positive – Everyone is Busy!
Things move quickly and most homes don’t stay on the market long. With quick offers, the whole process of selling your home could wrap up in just two months! Spring means a lot of action and the new showings every week keep spirits high and for good reason. This market has the highest likelihood of selling your home successfully and for a good price. With the number of buyers per houses for sale ratio, sellers have the advantage.
Negative – Everyone is Busy!
You need a Realtor who can handle their workload. Each agent has a maximum capacity for what they can handle while offering top-notch service. However, not every agent knows or follows their max number. I’ll admit I spent a couple of years struggling to juggle all of my clients. After some reflection, I realized I needed help and thus the South of the River Team was created and has been expanding ever since. This year we’ve added two additional agents to maximize our team’s potential!
Any profession even slightly associated with Real Estate is busy and moving at breakneck speed. This means tight windows for inspections, walkthroughs, closings, and helping clients make decisions. Since everything moves quickly you have to also. If your home has 3 offers you need to decide which one you choose before all 3 buyers move on to the next house. Even after accepting an offer there is a swift current pulling the process along. Faced with other options, buyers can lose interest in your home if negotiations are dragging on and hitting constant stalls.
Positive – Top of the Market Means Top Dollar
The market’s fierce competition leads to overall higher profit in the spring market. Your home’s price range in the spring is higher than in the fall. One of the many reasons for the elevated price range is higher inventory affecting appraisals. An appraisal is partly based on comparisons to nearby homes recently sold. The number of sales means more comparison options which means that you will get the most accurate comparisons possible. Pared with demand from buyers, you can sell your home for the top end of its price range.
Negative – Picky Buyers
Buyers can still be picky even in the spring market. After multiple offers, some sellers are surprised when the buyer they chose has a list of repairs they want to be done. The higher competition among buyers is why the spring market is called a “Seller’s Market”. Make no mistake though, buyers are not desperate. They do have options and since they know they will have to fight for any home and pay top dollar they want the property to be worth it.
To Sum It Up
The spring market is the busiest time to sell and this leads to a shorter time on the market and on average higher profit. However, the spring market is not without its’ challenges. Ultimately you need to choose what challenges you want to face. There are some who decide to sell in the fall because they have time to move slow knowing there will be less of a competition. As long as your home is in good condition, or can be whipped into good condition, it is the best time to sell.
For more on how to prepare your home visit some of my other blog posts including:
If you have any questions, please let me know, I’m always happy to help. You can give me a call at 612-889-6496 or send an email to [email protected]