Earlier this year, uncertainty over the global health crisis caused the real estate market to slow down quite a bit, and both buyers and sellers pushed pause on their real estate goals. But now, spurred along by low interest rates and relaxed social distancing measures, many buyers have returned to the hunt. Sellers, however, remain wary, and the number of homes on the market has stayed low, despite the increase in buyer demand. That means we’re in a seller’s market… and that might affect the way you buy or sell.
How Should You Respond to a Seller’s Market?
A “seller’s market” occurs when the demand for homes is greater than the number of homes for sale—i.e., when there are more buyers than sellers. That can be both a good thing and a bad thing, depending on which side of the transaction you’re standing on. For sellers, it might mean a faster sale or higher prices. For buyers, more competition or less choice. Here’s what you need to know about buying or selling in a seller’s market.
Sellers: The odds are in your favor
There’s a reason it’s called a seller’s market—conditions definitely favor sellers! Ideally, there won’t be a lot of similar homes for sale nearby, so you won’t have a lot of competition. This might lead to increased interest from buyers, as they have fewer viable options. However, it does not mean that you can overprice or undermarket your home.
Sellers: Prepare & plan ahead
If you really want to maximize your home’s potential, it pays to prepare. Many sellers assume they can skimp on preparation or bump up the price when buyer demand is high, but this is never an effective strategy. Instead, spend some time getting your home ready, whether that means cleaning and decluttering or making some minor improvements and repairs. Then, find a competitive price to list your home.
With good staging, the right price, and effective marketing, the goal is to generate enough demand for your home that you receive multiple offers, which will drive the price up organically.
Buyers: Competition can be tough
Buying in a seller’s market can be a challenge, but it certainly doesn’t mean that you can’t find a home you love at an affordable price. It does mean you might have to work a little harder and move a little faster, though. Preparation and awareness are key—you want to stay on top of the market so you’re the first to know about new listings.
Buyers: Be ready to make a move
In a competitive market, showing sellers you’re ready to buy is crucial to making your offer stand out from the crowd. And one way to do that is to get preapproved for a mortgage. Getting preapproved shows sellers that you’re serious about buying and that you’re capable of procuring a loan. It also jumpstarts the loan application process to help expedite closing times—which can be very appealing to sellers.
Buyers & sellers: Always work with an agent
Buying or selling, the #1 most important thing you can do is to find an experienced and knowledgeable local agent. Your agent can help you properly prepare for the road ahead, whether that’s staging and pricing or talking to lenders. Your agent can help you set realistic goals and expectations. And your agent can help you navigate the intricate details of the transaction.
Looking for an Agent in Sheridan?
If you’re thinking about buying or selling a home or property in the Sheridan, WY area, we’d love to help! Contact Century 21 BHJ Realty today to learn more about how we can make your real estate dreams a reality.