Estimated reading time: 4 minutes
Many headlines discuss a buyer’s market or seller’s market, especially after the Fed announcement in September. These terms refer to the conditions that give an edge to either party during a home sale, but how?
During this time, buyers may find they have more choices of homes and a greater opportunity to strike bargains on the price or other terms of sale. Inventory supply is higher than buyer demand in a buyer’s market, home prices remain stagnant or lower, and houses may take a longer time to sell.
With less buyer demand, you’ll have extra time to weigh your options and focus on your must-have’s for the property and location without losing out to the competition.
Homes are less likely to sell as soon as they hit the market, giving you more time to shop around. Ask your Real Estate Agent to help you find comparables, or similar properties that have recently sold and have similar square footage, bedrooms, lot sizes as the home you’re interested in to be sure you’re getting a good deal.
Before you sign on the dotted line and receive your keys, there are some things you can negotiate for to sweeten the deal. Consult with your Real Estate Agent and Loan Originator about negotiations you can make. From repairs to contingencies and concessions, there are plenty of benefits to ask for.
Your Real Estate Agent will help you set a realistic and competitive price for your home. They may survey similar homes on the market and list your home on par or lower than those in hopes to appeal to your perfect buyer.
As there are more options available, buyers may be more particular than in a seller’s market. Making minor improvements and repairs will show buyers that you’re motivated to sell and entice them to make an offer.
Marketing your property is important to help you stand out to prospective buyers. Professional photos taken of the property that capture the potential of the space and show off its best features can make a real estate listing shine.
A seller’s market is typically benchmarked with tight inventory of available homes and demand that exceeds supply. Bidding wars can be typical, helping to drive up competition and home prices.
Even with market advantage, don’t hold back on presenting your home in the best light possible. Be sure to clean and make low-cost fixes before putting your home on the market to attract the highest possible offers.
In recent years, many potential homeowners have been struggling with rising house prices. If you set your asking price at or slightly below its market value, you’re more likely to attract interested buyers.
Experts recommend reviewing all the offers instead of just going with the highest bidder. Remember to consult your Real Estate Agent or real estate attorney to determine which offer is best for your situation.
You may find there are less opportunities to negotiate than in a buyer’s market. It’s best to be flexible about contingencies, concessions, repairs, and specific closing dates. However, don’t settle if you’re only putting in an offer because you’re afraid to lose out. Buying a property is a commitment and an investment.
During a seller’s market, homes can move quickly and sell in less than a week. If you wait to make an offer on a home you like, you may find it’s no longer available by the time you make your decision.
When you’re competing with multiple offers, it’s important to make the best impression to sellers. With a mortgage pre-approval, sellers have peace of mind that you can afford the home and have the means to make your monthly payment.
Your Real Estate Agent and Loan Originator can help you determine what kind of market we’re in.
Here are some other factors that may help your determination:
Regardless of your market favoring buyers or sellers, the Licensed Loan Originators at Homestead Funding are here to help our borrowers every step of the way with their home financing journeys. Contact us to connect and make the most out of the market!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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