The “Seller’s Market”

Grab your thinking caps… we’re taking it back to 9th grade economics class: Supply & Demand

A seller’s market occurs when demand exceeds supply; in other words, there are more buyers looking to purchase homes than there are available homes on the market. This can lead to multiple buyers offering on a single property, bidding wars, and homes selling for well over list price.

For Sellers

 A seller’s market could be the perfect time to sell your home! You’ll have more buyer eyes on your property since there are fewer homes on the market, and buyers will be more likely to submit their highest and best offers up front in an effort to avoid losing out to the competition. In fact, some offerors may drive the sales price well over your original list price, which is major icing on the cake for you! The bottom line is that in a seller’s market, the ball is your court. Keep in mind that market shifts are inevitable, and eventually we’ll find ourselves in a buyer’s market where the opposite will be true.

If you’re interested in learning more about selling your home while you have the advantage, please contact me today!

For Buyers

If you’re looking to buy home in a seller’s market, you simply need to have an understanding of how this should inform your strategy. Although the seller does have the advantage, there are methods for coming out with an accepted offer and scoring a property you love. Here are a few things to keep in mind:

• Create a list of your top 3 – 5 “Must Haves” for your new home. Maybe you need a first-floor owner’s suite or a large fenced-in yard. It’s important to identify these needs so you won’t become attached to one particular property; instead, you can keep your options open and be prepared to make an offer when a home meets your criteria.
• Get Pre-Approved. It’s crucial to submit offers with a pre-approval letter from a lender. This shows the seller that you’re serious about purchasing and prequalified for the mortgage loan.
• Don’t get hung up on trying to get a “deal.” If you’re dead set on low-balling the seller no matter what, you’ll likely lose out on the property to other buyers who are willing to offer more and pay their own closing costs. Once you’ve identified your budget, be prepared to offer your highest and best the first time around to reduce the likelihood of rejection. It’s most important to get the home at a price you feel is fair, not necessarily a steal.

If you need assistance navigating the current seller’s market as a buyer, please reach out to me!

Keep in mind that no matter what side you’re on, a great REALTOR® is an advocate who will keep your best interest at the forefront. If you, or someone you know is interested in learning more about the buying or selling process, feel free to contact me via phone, text, or e-mail. I am ready to assist!