Tag Archives: Seller’s Market

What Is A Seller’s Market?

Monday, 08 March 2021 09:05
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A seller’s market happens when demand exceeds supply. When there are more buyers, but real estate inventory is low. Since there are fewer homes available, sellers are at an advantage. We have definitely been in a Seller’s Market for many months now.

In a seller’s market, homes sell faster, and buyers compete in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices. Furthermore, the increased interest means that buyers rarely have the power to negotiate and are more willing to accept properties as-is.

Due to the shortage of housing, these conditions often lead to multiple offers. During these bidding wars, buyers will make competing offers and drive up the price, typically above what the seller initially asked for.

Tips For Buyers

 Whenever there is a low inventory of houses on the market and an abundance of buyers, timing is crucial.

Act fast: If you find your dream home during a seller’s market, you will have to act fast. If you hem and haw over a house you want to buy, you may find that it’s no longer available by the time you make an offer. You should get preapproved for a loan ahead of time, so your financing is in order when you need it.

Know that you’re at a disadvantage: When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus your attention on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they are worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to pay in cash because they don’t have to worry about the deal falling through due to issues with financing.

Be patient: If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Many buyers end up suffering during a seller’s market because they get frustrated. Inexperienced buyers caught up in multiple offers will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. That’s always a mistake.

Don’t settle: On the flip side, some buyers will end up making offers on homes they otherwise wouldn’t be interested in because they’re tired of losing out. Remember, buying any property is a huge investment and often a 30-year commitment. Don’t settle on a home just because it’s cheaper. Unless you have to move immediately, it’s a much better idea to wait it out and resume your home search after the market cools down.

Tips For Sellers

Since sellers must compete to attract buyers in a seller’s market, it’s helpful to know how to increase interest in your property.

Clean and organize: To begin, make sure that your home is in good condition and has been cleaned and organized before you list, market, or show the property.

Price fairly: Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you are likely to attract more interested buyers. Some sellers choose to list their homes for slightly less than the assessed value in order to encourage multiple offers.

Carefully consider offers: It’s even more important during a seller’s market that you carefully review the offers you receive. Sellers are often so focused on choosing the highest offer that they fail to examine the financial strength of each buyer. Just because buyers say they’ll pay a certain amount for your home doesn’t guarantee they’ll actually be able to obtain those funds. Lenders will not allow buyers to borrow more than the assessed value of your home.

The last thing you want is to accept an unrealistic offer and be forced to put your home back on the market when the deal falls through. The longer your home is on the market, the more questionable it will seem to buyers, and the more power they will have when negotiating. For ALL these reasons, is why you need an experienced real estate agent.

Ensure preapproval: For any buyers who require financing, you should ensure that they have been preapproved for a loan. Preapproval requires that buyers’ finances and credit history are verified, making it far more likely they’ll ultimately be able to obtain a loan for a specific amount of money. Prequalification, on the other hand, is just an estimate of buyers’ finances.

Be aware of contingencies: Also, be on the lookout for offers that include contingencies. Offers that include stipulations, like mortgage contingencies, home sale contingencies, appraisal contingencies, and inspection contingencies, enable buyers to back out of sales contracts if certain conditions aren’t met.

Is It A Buyer’s Market Or A Seller’s Market?

In the North Georgia area, it is definitely a Seller’s Market.  The inventory of homes for sale is at an all-time low which is preventing some potential sellers to list their property.  Here are some things to consider if you are one of those sellers:

  • Consider new construction. Often times you will have a more definitive timeframe and have somewhere to move.
  • Consider renting for a while. Yes, it may require two moves, but will also give you time to find just the right property.
  • Consider moving in with family. Not the most ideal situation, but some have the extra space and would agree for a limited time.
  • Go on an extended vacation. Have an RV or rent one? With work from anywhere situations, this might be the opportunity to travel until the market has more inventory.
  • If you have a beach/mountain rental, use it until you find your next forever home.

Bottom line is, if you can be flexible, you can take advantage of getting top dollar for your current home and still find your next home.  Give me a call and let’s work out a plan for you.

Best Regards,

Marie Dinsmore

Experience, Passion, and Commitment to Excellence

It’s a Sellers’ Market: Advice for Buyers and Sellers

Friday, 07 August 2015 15:20
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verico_lozinski_mortgage_corp_21c47bc6_1e78_1bd7_e8ab_31049851a086Real estate season is in full-swing and the Atlanta market has proven itself to be hot for sellers once again.  However, while phrases such as “bidding war” and “multiple offers” may be welcomed by those looking to get rid of their property, similar words may incite a bit of unease in buyers looking to make a speedy purchase.

Still, while it would be easy to assume that, in this climate, sellers can easily field offers with minimal effort, it’s important to remember that both buyers and sellers need to work hard to make the most of the current market.

FOR SELLERS:

Be On Your Game.  Even in a sellers’ market, traditional real estate rules still apply.  In short, sellers must still put their best foot forward if they’d like to get the most for their home.  Houses that are shown in top condition are much more likely to sell—quickly—in a sellers’ market than those that have been haphazardly cleaned and organized.

With that being said, don’t get carried away by assuming that you can overprice your home simply because the market is currently favoring those looking to move.  At the end of the day, buyers will always flock to well-priced homes that show well.  If it’s not priced right or shows poorly, it won’t sell.

Don’t Drag Your Feet.  If you’ve been lucky enough to receive multiple offers on your property, it’s important to move forward with the most qualified buyer.  Waiting too long can cause a loss of momentum, so pay attention to the buyer who is not only working with a local agent and has their loan lined up, but the one who makes an aggressive offer and expresses serious interest in your home.

FOR BUYERS:

Strategize and Plan.  One of the most frustrating things about a sellers’ market is that, as a buyer, even if you’re serious about purchasing and have made a point to secure reputable financing, you may have trouble either finding the right home or getting your bid picked up.  Therefore, since there’s often little you can do in these types of situations, it’s important to make sure that you’ve crossed your t’s and dotted your i’s in advance.  You don’t want to suddenly find yourself in a great position to have your bid selected if you’re not prepared to move through the closing process.

Avoid Resting on Your Laurels.  Sellers’ markets are all about seeing what you want and moving on it.  Truly interested buyers won’t wait for the open house to decide whether they want to make an offer.  If a home enters the market on Monday, you need to be viewing it on Tuesday and if possible, making an offer within a few hours.  If you make the mistake of prudently waiting a week or two, you may find yourself sorely disappointed.

First Impressions Always Count.  Buyers who move quickly show sellers that they mean business.  Remember, no one wants to wait around, so make a point to make your contingencies and timeframes swift, and take as much risk as possible away from the seller.  Consider moving forward with an inspection prior to submitting your offer so that your bid won’t come with contingencies regarding inspections.

In regards to financing, it’s important to consider the state of our current economic climate.  Securing a loan takes longer than it did 10 years ago, so make sure you’re moving to acquire the necessary funds well in advance.  Plain and simple, if you need to ask the seller for an extra month in order to get your finances in order, you’ll have a difficult time competing with someone who can do it in a quarter of the time.

CONCLUSION:

In the end, regardless of the market, both buyers and sellers need to be prepared for the home sale process.  Sure, it may seem stressful; however, if you make a point to surround yourself with a knowledgeable and experienced team of real estate/lending professionals, you’ll be in a better position to get the most out of your investment.

If you’d like some advice or have a home you’d like to list or buy, please feel free to contact me.

Marie Dinsmore | The Dinsmore Team | www.DinsmoreTeam.com | 770-712-7789

What’s the Difference Between a Buyer’s and Seller’s Market?

Friday, 24 April 2015 01:25
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realtor-4As the spring real estate season starts to get underway, it appears that the market is showing favor to home sellers. However, while the terms “buyer’s market” or “seller’s market” may be something we regularly hear about, especially in regards to the state of the economy, truly understanding what each expression means is important.

Generally speaking, the above terms signify what you can expect when moving ahead with a real estate transaction.

A buyer’s market occurs when you have more supply than demand, which is what occurred after the housing bubble collapsed in 2007. When this happens, since there are more people looking to sell houses than people looking to buy them, many homeowners wind up accepting less money than their homes are worth and in some cases, may even find themselves offering incentives just to secure an interested buyer.

While this obviously presents a problem for sellers, this type of market is fantastic for buyers who—if they have the money—can find themselves in possession of a fantastic home for thousands below the asking price.

On the other hand, a seller’s market is just the opposite because it indicates that the demand is larger than the supply. In healthy economies, people have more money to spend, which means sellers may see several buyers competing for their property. When this happens, prices tend to go up since people are willing to pay more for what they want.

In this case, sellers are definitely the faction that comes out on top because they are more likely to see a great return on their home investment.

Even so, when considering the buying or selling process in your particular location, it’s important to remember that there may be fluctuation within the same state—or even the same county—which is worth thinking about if you’re considering a relocation. In other words, while your current home may be listed in a so-called “buyer’s market,” the area where you’d like to move may be considered a “seller’s market.” When this happens, you may wind up paying more money than if you were to sell your home at an advantage and buy in a location where you’d also buy at an advantage.

As with anything in life, real estate tends to have a natural ebb and flow so market’s never last forever. While experts try, it’s often difficult to predict what a market will do with 100% accuracy, so when deciding when to buy or sell, it’s worth speaking to an experienced real estate agent who can offer some insight into the local area.

At the current time, North Georgia (particularly the Cumming, Alpharetta, Roswell, Milton, and Gainesville) appears to be a seller’s market, so if you’ve been thinking about selling your home, now is the time to do it!

If you’d like more information or would like to obtain a free estimate of what your home is worth, please contact me.

Marie Dinsmore | The Dinsmore Team | www.DinsmoreTeam.com | 770-712-7789