Wondering what type of market we are in? Buyers Market vs. Sellers Market.
Whether it is a Buyers Market or a Sellers Market, there are important things to know about each. The Lawhead Team would like to share some items to keep in mind depending on what type of market we are in.
When the inventory of houses available for purchase in an area is high, then buyers will have an advantage. Sellers may be concerned about their competition and might be willing to come down in price, accept conditions on the purchase or make upgrades to the property in order to secure a buyer.
When inventory is low, then sellers are likely to have the advantage. In a seller’s market there are typically multiple offers for homes and the sellers are not under any pressure to accommodate requests from buyers – as there is likely another buyer willing to purchase without any conditions or at a higher price.
Of course, all real estate is local so you can have buyer and seller markets within a larger market or at different price points.
If you would like to improve your chances of getting the house you want in a sellers market, follow these tips:
- Secure a letter from a lender that indicates you will qualify for a mortgage up to a certain amount and submit that letter with your offer.
- Make an offer that doesn’t include items that will likely discourage the seller such as asking that they pay certain fees that are customarily paid by the buyer. You may also improve your chances by being flexible on a closing date, especially if the seller needs the time to relocate.
- Make your first offer your best offer. If you are competing with others for the property you may not get a second chance.
- Larger than required down payments and shorter inspection deadlines may also make your offer more attractive.
If you are selling your home and you are in a buyers market, follow these tips to speed up your sale process:
- Make sure your home is in tip-top shape inside and out. Check out the competition by visiting open houses in the area. Does your house measure up? Will it be seen as well maintained?
- Set a realistic price. Understand how the competition is priced and make sure you are competitive. A buyer’s market is not the time to try and find additional value on your sale.
- Consider offering incentives. Perhaps you can leave your kitchen appliances behind or offer to replace the carpeting if it is in need and not to the buyer’s taste.
- Be flexible when reviewing offers. Be prepared to negotiate on price, closing date, needed repairs or allowances. If you drive away a legitimate offer by being inflexible, you may wait some time before you see another one.
Regardless of the market conditions, most buyers and sellers have limited experience in real estate transactions. It is always appropriate to work with a professional like The Lawhead Team, whether you are buying or selling.