If you’re considering selling your home in Erie, Pennsylvania, now is a good time — the real estate market is hot! With a lower supply and higher demand, the current market is a competitive buyer environment. But, is selling in a hot market always the best choice for home sellers? In this blog post, I’m laying out the pros and cons of selling your home so you can make an informed decision.
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Erie’s real estate market is experiencing a strong seller's market. With low inventory and high buyer demand, homes are selling quickly and above asking prices.
According to data from Zillow, the median home value in Erie is $128,194, representing a 15.7% increase over the past year. Additionally, the average days on the market for homes in Erie is currently 27 days, which is significantly lower than the national average of 60 days. This means that homes in Erie are selling quickly, and sellers have a good chance of receiving multiple offers.
With high demand, low inventory, and rising home values, now could be the perfect time to take advantage of that move you’ve been hoping to make. That said, the market can change quickly! Working with an experienced real estate agent can help you navigate the current market conditions and make informed decisions about selling your home.
As a seller, a hot market presents a few advantages. While I can’t guarantee any of these outcomes, here are some pros we can optimistically hope for:
When more buyers than homes are available, sellers can ask for higher prices. It is important to work with an experienced real estate agent who can price your home well. If you have a lot of interest in the property, you may even sell above the asking price to increase your return on investment.
In a market with low inventory and high demand, homes sell quickly and may receive multiple offers within days of being listed. If you need to sell quickly due to a job change or other life circumstances, you may be able to avoid the stress and uncertainty of a long sales process.
When demand outpaces supply, multiple interested buyers may compete for your property. This competition can lead to a bidding war, further driving the sale price. As a seller, you may get offers that exceed your initial listing price and provide you with a higher return on your investment.
When home prices rise, there may be more favorable comparable homes from recent houses that have sold for a high price that could help your home have a strong appraisal. Although this does not create a guarantee that your home will appraise for the contracted purchase price, it could help contribute to a fair appraised value. This is beneficial because a higher appraisal value can help secure the buyer's financing and minimize the risk of the deal falling through due to appraisal-related issues.
Selling in a hot market grants sellers increased negotiating power, flexibility, and the opportunity to secure favorable terms. With high buyer demand, you have the leverage to negotiate terms aligned with your goals, like extended occupancy. Buyers in a competitive market can be more open to making concessions and offering incentives to secure their desired property.
You can leverage the equity you've built to move to a larger or more desirable property. The higher sale price can provide a significant down payment for your next home, enabling you to secure better financing terms or afford a home in a more desirable neighborhood.
While selling your home in a hot market can be a great way to maximize profits and sell quickly, there are also some challenges to be aware of. Here are three challenges I like all my clients to be aware of:
One of the main challenges is the need to have your home ready to show at all times. In fact, buyers may want to see your home as soon as it hits the market. So, it’s best to be prepared for showings even before your home gets listed.
Another potential challenge of selling your home to a hot market is the pressure to make quick decisions. While I’ll never put unwanted pressure on you, when there are multiple offers on a property, you’ll likely want to decide quickly and carefully to choose the best offer. Of course, I will help you navigate the decisions to get the best outcome!
Rising interest rates have the potential to impact the number of qualified buyers in the market and slow down the sales process. But, this doesn’t mean it’s a bad time to sell your home! Working with a trusted real estate agent who understands the market will help you navigate the process and maximize your profits.
What do rising interest rates mean for selling your home?
First, here’s what higher interest rates can mean for buyers: As rates climb, mortgage payments become pricier, potentially affecting buyers' purchasing power. Some buyers may find it harder to qualify for a mortgage or may feel priced out of the market.
We can expect to see a sense of urgency among buyers. Fear of further rate increases motivates buyers to jump into the market sooner rather than later. This heightened urgency leads to more competition among buyers, potentially resulting in multiple offers for sellers. So, now is the time to strategically price your home and capitalize on the demand by inviting motivated buyers and potentially securing higher sale prices.
In a market influenced by rising interest rates, sellers hold the upper hand. With an increased sense of urgency among buyers, sellers have a unique opportunity to negotiate favorable terms. Picture shorter closing periods, fewer contingencies, and even the potential for higher sale prices.
Don't miss out on the opportunity to make a smart financial decision that sets you up for success in the future. Here are a few tips for selling your home:
As I mentioned earlier, the current real estate market in Erie is a hot seller's market, with low inventory and high demand contributing to rising home prices and quick sales. If you're considering selling your home in Erie or the surrounding areas, don't hesitate to reach out today.
Still wondering if now is the right time to sell your house? Head here: 4 Questions to Ask Before You Sell
