Now that the tables have changed and it is a buyer's market in many states, many sellers are worried that they may not be able to sell their home. What should a seller do especially if they really need to move?
First of all, let's understand the definition of a Buyer's Market. How do you know if your area falls under the economists' definition of a buyer's market? The assistance of a good realtor will help you determine if your area falls under this. Your realtor has access to statistics and reports from their market center or their Board. Bottom line is, it is a buyer's market if there are more than seven months of listing inventory. As an example, in area LS (Lake South), 92 homes have sold in July alone. There are currently 1,102 active/pending homes, hence, there are 12 months of listing inventory. Yikes! When a buyer's market occurs, there are many buyer mindsets such as: buyers expect all homes to be sold at a "steal" price; they expect to have an upper-hand in negotiations; buyers ask for concessions from the seller or; they are hesitant to make an offer because they think that the seller will lower the price or a better opportunity will arise.
Sometimes, a buyer's market is created by home seller's or those advising them what price to list their home at. 80% of the homes in a buyer's market are over priced and 20% are well-priced. Those that are well priced are most likely to get into a multiple offer situation. One must price their home within the CMA pricing researched by their real estate professional. If a home is over priced at time of listing and the average days of market increases, once the DOM hits the triple digits, the listing has been considered stale.
If you are a motivated seller, the only two things that matter the most is pricing and condition. Price your home at market value and make sure the condition of the home is pristine. A seller may have to put money on repairs, staging, fresh paint and perhaps landscaping. As mortgage lenders have tightened their belt and increase rates and fees, a seller might have to be prepared to throw in some incentives to help off-set the buyer's closing costs. Like I said above, be better off falling within the 20% of the range than having to sit and wait for the call that it's time to drop the price (again)!
