The Leverage You Have as a Seller - Northern Title Blog
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The Leverage You Have as a Seller

The Leverage You Have as a Seller

The Leverage You Have as a Seller

When you decide your sell your home, you have several main points of leverage over buyers, even in a buyer’s market. This article will detail several ways you can leverage your position as a seller, in order to get the best deal on your home, and pocket as much money as possible.

There’s a Supply Problem

As a homeowner deciding to sell, you can look to the simple theory of supply and demand as one of the main points of leverage you have over buyers. There is a severe housing shortage that won’t solve itself for many years, meaning the demand outweighs the current supply. In simple terms, there are more buyers than sellers, which means your home will likely have plenty of competing buyers coming at your door.

Even when the market shifts to more of a buyer’s market, you still have the advantage of owning a home when there isn’t enough supply. This means that you may not get the kind of offers you want in a buyer’s market, but offers will still likely come in.

Use Offers as Leverage

One of the main points of leverage you have as a seller is competing offers. Let’s say you list a home for $500,000. There may be two competing couples who each love the home. Couple one offers $500,000 for the home, while couple two offers $510,000 for the home. You can always go to couple one with an opportunity to match or exceed the bigger offer in an attempt to bid the price of the home up.

As the seller in this situation, you have the ability to accept the offer that you want, when you want it. If you and your agent feel that you can keep bidding up the cost of the home, the competing offers are a major point of leverage.

You Can Hold Out For the Offer that You Want

If you need to sell your home within a matter of weeks, you won’t have as much leverage over buyers, as you will be quickly forced to accept an offer, which may come under the asking price. If you have more flexibility on time, you likely have more leverage, as you have more power to decline subpar offers or up-bid potential buyers. The main point of leverage you have as a seller, as long as the sale isn’t ultra time-sensitive, is your ability to say no to any offer you would like.

Wait for the Sellers’ Market

When interest rates are high and/or the economy is weak, demand for housing typically goes down. When demand for housing goes down, more power shifts to the buyers, as there is less competition. You can decide to sell in this scenario if you need to, but if you have the ability to wait for the next sellers’ market, that would be ideal.

When interests rates are low and/or the economy is strong, demand for housing usually goes up. In turn, the heightened demand for housing shifts power to the seller, as they will on average receive more offers and interest. By waiting for the right time to sell, you can receive better offers for your home.