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Most people traditionally believe that spring time is the absolute best time to sell your home. The belief makes sense considering everything is in bloom and kids are finishing school. However, what most people don’t realize is that the market tends to have two peaks during the year. The first, is of course, in late spring/early summer, but the second is surprisingly in late fall/early winter. Why is this?

1) The Holidays.  While schools may be the main motivation for moving over the summer,  the holidays tend to drive motivation for moving in the winter. A lot of people want to be in their new homes before Thanksgiving and Christmas. They envision having all the family over to show off their new digs over Thanksgiving dinner or celebrating their first Christmas decorating their new home. The desire to be moved in and settled by the holidays can make even the most reticent buyer get off the fence.

2) Less Inventory.  There is less competition in the fall and winter months which means the homes that are on the market get more attention. This is especially true in a hot market like we’ve had in 2018. There are a ton of buyers that got tired of competing against 10 other offers for the same home and decided to take a break for a while until the market cooled. You can bet they will be starting their home searches again now in hopes that they won’t have to compete as much with other buyers.

3) Interest Rates.  Interest rates have slowly begun to creep up and the fed is expected to raise rates slightly in December. This is yet another reason that buyers who sat the spring market out will want to take advantage of this fall and winter, so that they can get more house for their money.

4) Life Happens.  People move year round due to job changes, family additions, downsizing, etc that have nothing to do with flowers or schools. They aren’t constrained by time limits and are simply waiting for the right home to come on the market. This is even more of a factor in areas where the school system is year round and they don’t have the pressure to have to move during a certain time of year.

If you’re considering selling your home and want to meet with a professional who can give you an estimate of your home’s worth as well as what you’ll need to do to get your home ready for the market, contact us today or schedule your appointment online.

-by Samara Presley, licensed Real Estate Broker with Smart Choice Realty

I recently saw this sign posted outside of a home in my neighborhood.  I searched the Multiple Listing Service for more information about the home and what they were listing it for, to no avail.

As a neighbor interested in values around my home and also as a Realtor who has clients looking in the area, I was very interested to know what they were asking for the home.  I called the agent to find out only to learn that the home was already under contract.

Frustrated, I decided that I’ve been quiet on this matter for too long as I watch my competitors list & sell homes as “Coming Soon”.   I want to voice my concern and educate home sellers why it might not be the best approach.

The Realtor likely bragged about how quickly she sold the home and I would guess that the homeowner is probably pretty proud that their home sold before it was even technically on the market too.  In the real estate industry, selling a home before putting it on the broader market is called a “Pocket Listing”.  It means the home isn’t on the MLS and hence isn’t on the normal real estate channels a home buyer would use to find a home.  This is done all the time in commercial real estate due to their lack of a formal Multiple Listing Service.  It’s rare to see it in residential real estate, but when it is a hot market, some agents cannot resist.

So, what’s the problem you ask?
My issue with pocket listings is that in a hot market, the agent isn’t putting the home out to the broader market which in turn means only a limited number of buyers actually know about the home being for sale.  The harm in this for sellers is that fewer buyers knowing about your home, means less competition, which translates to you, the seller, not getting top dollar for your home.

For example, if you sell with a Coming Soon sign in the yard, you’ll likely only get a few interested buyers, maybe one or two of which actually make an offer.  That may sound great to a homeowner, but what if instead of a few interested parties, you have several and you get to choose from 10 offers instead of two?  Don’t you think you’d like to see 10 instead of two?  Not only will you get top dollar but you’ll also get to choose the most qualified buyer and best possible offer.

So why do agents do this?
Simple.  Because the Realtor stands to gain the most from a pocket listing, not the homeowner.  They are hoping that sign in the front yard generates a phone call from a buyer who doesn’t have an agent.  Then they can act as a dual agent and keep all the commission for themselves.  It is also a way for them to collect the names and numbers of home buyers looking in the area who don’t have an agent.  They are basically using the seller’s home as a way to get prospects.

My advice: Don’t do it.
I believe that home sellers are doing themselves a disservice by letting agents list them as a Coming Soon home.  If your agent has recommended this to you, you may want to ask a few more questions and make sure they really have your best interest at heart.

Click here for your free download of 10 Questions You Must Ask Your Realtor Before Hiring Them.