Updated: Sep 11, 2020
Any experienced real estate agent will tell you that markets go through cycles, your local market included. Before deciding to sell or purchase a home, be sure to take a look at your market’s cycle to take advantage of the best timing to buy or sell a home. Regardless of where you are looking to buy or sell, it is of the utmost importance to know your market.
Factors that indicate that a sellers’ market is prevalent in your neighborhood:
Low inventory of homes – There are fewer homes for sale than the number of buyers looking to purchase a home. Since competitive offers are quick to come in, home listings do not stay on the market long.
Low-interest rates – More buyers are attracted to the market when the interest rates are low, which creates an opportunity for first-time buyers, along with those looking for an upgrade. Low rates give buyers the chance to purchase something special. With interest rates low, buyers who are wondering how much house they can afford could be looking to buy now and may even be able to afford more than they originally thought.
Strong buyer’s demand – With a low housing inventory and/or shortage, more than one interested buyer triggers the sale price to rise before the seller accepts an offer. With high buyers’ demand, there are bidding wars occurring all over the country and sellers can take advantage of this. Prices are kept strong and houses sell quickly and potentially for more money when there are bidding wars.
Tips to benefit the most from a seller’s market
Be strategic with your sale price
When it’s a seller’s market, many try to obtain the maximum profit from their home by pricing their house at the highest price possible. This strategy may work, but it’s likely that your home will sit on the market for a longer period of time. Before you finally sell, you may have to make some price changes if you price your home too high.
On the other hand, if you’re hoping for a bidding war that never actually comes and price your home too low, you might have to accept an offer for less than what you could have gotten. Your real estate agent can provide you with comparable sale prices for your area. A great way to put yourself in an excellent position to sell your home quickly is to have a good idea of how to price your home based on your local market.
The best way to help buyers visualize themselves living in the home is to eliminate clutter, remove spare items or furniture, neutralizing colors and putting away your most personal items. This allows the buyer to imagine their couch where your couch sits now – it allows them to get a feel for the size and ways the spaces can be used. It can be a valuable investment to hire a professional stager, especially if it has been a while since you have updated your home. Stagers know just what to bring in to attract buyers, like neutral, modern furniture and accessories. It has been shown that homes that are staged sell 73% faster than unstaged homes.
Choose the best day to list your home for sale
The best day to “go live” with a home listing is on Thursdays because it allows time for buyers to tour homes over the weekend. It also allows them to attend open houses for the newest homes to hit the market. You want to make sure you have high-quality photos and videos that showcase the house in the best light. Another beneficial option is to have a virtual or 3D interactive tour. The day you choose to have your listing go live can cause you to go from a quick sale to having your home sit on the market for an extra week.
Be prepared to move
Since the majority of buyers do not want to wait to move in, you should be prepared to move out in 30 days. If you have not yet secured your new home, you may need to rent a storage unit to store furniture and possibly rent an apartment, hotel room, or an Airbnb until your new home is ready. If the market is hot, be prepared for your home to sell quickly. If your new home is ready, think about hiring a moving company ahead of time so you can have a game plan for the day you move out.
Be sure to properly analyze the offers you receive. In a seller’s market, a competitive listing produces multiple offers. You will want to look closely at numerous offers to decide which one is best for you. Keep it in the back of your mind that not all offers are the same.