Welcome spring, the real estate market missed you! It’s now March, the true beginning of the selling season. Traditionally, every year at this time we start to see more and more listings hit the market until June when the inventory generally peaks out and then starts trailing off.
As a Realtor, one of my main functions every day is to scour the market for new real estate listings. It is the first thing I do every morning, again at lunch, and then again in the afternoon. Sometimes I literally am looking 10 times a day for new listings. My buyers count on me to know what is out there in the market. And what a competitive market it is.
This year has been a bit different than most other years, and hearkens back to the mid 2000s, when we were literally writing contracts on the hoods of our cars. You’ve probably heard about the shortage of inventory in Fort Collins, but if you haven’t … let me tell you … we are short on homes to sell! Ask any agent. We are all having the same issues trying to find homes for our buyers, especially in the price range under $350,000. In fact, I have a sign in the front window of my office begging homeowners to walk in and discuss selling their place!
Which leads me to the point of this article. This spring, I have been seeing a whole lot of listings hit the market, already under contract, otherwise known as “sold before published”. There is one company in particular that I am seeing this from, more often than not it seems. Now why do you think this is a bad thing? It should be pretty obvious!
But…maybe it’s not obvious, because I KEEP seeing it happen. Over and over again. Some agents are clearly talking their sellers into accepting offers from buyers before the property is ever listed on the open market! Maybe that agent gave their client a market analysis telling them what they believe the home is worth, and the seller, being a layman, doesn’t know the true value or doesn’t realize that the agent is giving them a lower value than could be expected, particularly in this seller’s market. Then that agent said “hey, I know a buyer that this house would be perfect for” and then showed it to that buyer, told them the price, put the deal together, and collected the full commission, all before the property had the chance to be seen by other buyers.
Now as a seller, I can see how you might be easily talked into something like this. You and your agent come to a price, and your agent brings you an offer, and you don’t even have to show your home to a bunch of different buyers! Showing and selling a home can be very difficult and time consuming.
And if I am representing a buyer, and I can get my client into a home before it hits the MLS, well that is just a great situation for us. I know I have an opportunity to show them a home that no one else is seeing, and I have a great chance to get them into a position where they don’t have to compete with other buyers!
Of course, for most sellers, getting top dollar is the number one goal. I am here to tell you that there is a good chance that won’t happen if you sell it before it hits the MLS. Especially if your home is under $350,000 (that is the segment of the market that is selling like absolute hotcakes). Don’t leave any money on the table!
The MLS is your number one sales tool. Once your home is on it, it’s exposed to thousands of agents and hundreds of thousands of buyers. Why would you allow your home to sell before it is exposed to the open market, full of pent up demand and buyers ready to cut checks on the spot? We are in a COMPETITIVE, SELLER’S market right now. Go ahead…generate a bidding war. Get top dollar. As a seller, this market is golden. NOW is the time for you! You are doing yourself a dis-service allowing your home to be sold before it ever gets published! PEOPLE, IT IS SIMPLY COMMON SENSE.
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