Buyers & Sellers Markets, What does it all mean?
My blog is setup with the bottom line at the top and supporting materials at the bottom.
Your time is important, sometimes you just want the answer!
My Trusted Advisor Advice
Selling in a Buyers' market
Create irresistible listings - incredibly staged pictures, 3D videos, floor plan maps, drone footage, etc. Perhaps inject some "lived in" pictures, to show a great shot of how your wonderful house can entertain. The holidays are coming, perfect timing!
Don't just place signs - a sign is a given. The world notices you only when your targeted messages get to it. You can't just place a listing on the internet and assume it gets to the target audience. Things like keywords and hashtags get the message to the right audience. These things aren't one time efforts, they need daily tweaking to market your house appropriately.
Communicate - the marketing plan has to be dynamic. We live in a right now society, monthly adjustments to marketing strategy are old school, you should be modifying it weekly. Note, that I am not implying price dropping as a strategy. My assumption is that the house is appropriately priced for the current marketplace. The agent is getting paid to drive the marketing strategy and communicate it to you, demand that!
Get creative -
Throw attractive items into the deal (pool tables, special appliances, furniture, etc.)
Let the prospective buyer stay a night in the house! Put the house on Airbnb just for them, you are covered legally and they get a taste of why they should buy.
Back to the basics-
Price it right.
Clean the home top to bottom.
Get rid of clutter.
Up the curb appeal compared to neighbors.
Keep it business, buyers do have the edge and will provide what may be deemed insulting bids. It's not personal and you would likely do the same on the other side of the transaction. Counter reasonably.
Buying in a Sellers' Market
Present a solid offer:
Make your best offer from the start.
Flexible closing dates may be attractive to the seller.
Possibly no contingencies.
Work with a mortgage agent to package yourself so you present a compelling offer.
Get your down payment as high as possible.
The type of loan matters, i.e. conventional, VA, etc.
Be prepared for a bidding war - know what your limit is and setup an escalation clause with your agent.
Move quickly - speed wins in Sellers' Markets. Make sure your attorney knows he needs to boogie and get through attorney review fast.
Details, Details, Details
Understanding the "Market" --keep in mind that the market changes depending on seasons. For instance, summertime usually has more houses for sale than winter time. That would mean less inventory in the winter and a higher chance of a sellers' market. Also, the market may be buyers' in one town and sellers' in another--the silver bullet is a knowledgeable agent.
Tip: the bottom line is, if you need to move, the "market" is what it is. Partner with a Trusted Agent and you will get the best deal possible for your circumstances.
Buyers' Market -- typically defined as 6 months of inventory or more - essentially more houses than there are buyers, supply exceeds demand.
What does that mean? Buyers' markets are an ideal time to buy a home, you are more likely to get a great deal.
Tip: In a buyers' market, brace yourself for some disappointments, you may be outbid on something you love, don't get discouraged--keep plugging away!
Sellers' Market - typically defined as 6 months or less of inventory, essentially buyers are competing for less houses. This can drive home prices up.
Tip: Keep in mind in a sellers' market home prices can be driven up and there could be less negotiation room for buyers. If you are financing, the house will need to meet the appraisal requirements for the lender. Highest bid may not always be the winning bid.
What does all of this mean for your town? See the chart below for absorption rates.
*Data from GSMLS as of 10/26/18
What does all this madness mean? - we can draw some assumptions around these numbers.
We are still predominantly in a sellers' market.
Higher-end homes take longer to sell and the market for them has softened. Marketing sells houses.
The Sellers' markets with low monthly averages are getting top dollar.
Even with rates on the rise, real estate is chugging along.
Trust me, You Matter!