Savvy Homeowners Aim to Profit in Strong Sellers’ Market

A good portion of sellers is taking advantage of today's highly competitive house-hunting environment. Data researchers at Realtor.com found that 29% are asking for more than they think their home is worth.

While the strongest reasons for relocating remain the desire for more space and meeting the needs of a growing household, the second-highest motivator is the desire to take advantage of the current market to make money on a home sale, noted Realtor.com Economist George Ratiu 

Multiple offers and high prices are just the beginning of what sellers expect, according to the survey of 657 homeowners who plan to sell within the next 12 months between March 26-April 7.

"Low mortgage rates and a lack of available homes for sale have created a strong seller's market, and these survey results show that homeowners think that they have the upper hand if they list their home soon," Ratiu, said. "However, after a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back which should help moderate prices and bring more balance to the housing market over the coming months. For homeowners planning to sell this year, research your local market conditions to ensure that your home's price reflects neighborhood trends."

Fifty-three percent of sellers expect to get their asking price and 24% expect to get more than asking. Sixteen percent of sellers expect a bidding war to take place and to have multiple offers to choose from, Realtor.com reported.

"With home prices up 17% in just the last year, it's no wonder that 94% of home sellers expect to get more than what they originally paid when they bought their home. One in 10 sellers expects to get double what they paid for the home," said the report's authors.

Homes nationwide are selling 41% faster than one year ago. They average 43 days on the market. Considering the conditions, 25% of sellers expect an offer within a week of listing, and 16% expect a cash offer.

It's possible to land one's dream home right now, but shoppers must be battle-ready and focused, note the experts.

"If you want to be competitive in today's housing market, it's important to have all of your finances in order and be ready to move quickly when you find a home you love," said Rachel Stults, Deputy Editor, Realtor.com. "A good tip is to get pre-approved before you begin house hunting, and then look at homes under your budget. That way, if you need to offer above asking to be competitive, you can do so without stretching your wallet."

The full Realtor.com report on the company's website.