
2019-02-08 17:41:29 4 Characteristics of a Seller It’s only natural to want to figure out what type of market you’re entering when you decide to list your home for sale. There are distinctive differences between a buyer’s and seller’s real estate market that are worth learning about. Seller’s markets are characterized by:
Let’s take a closer look at each of these characteristics. Depleted Inventory The most common cause of low inventories in a real estate market is a combination of few homeowners listing their homes and strong buyer participation in the market. It’s a matter of supply and demand. Escalating Home Prices The economic principle of supply and demand works with most commodities, including real estate. When buyer demand is high but the supply of available homes is low, those homes that are available increase in value. Multiple Offers are Common When there are few decent homes on the market yet plenty of ready and able buyers vying for them, multiple offers on suitable homes become common. Or, as I always say when I see the inventory shrink “Home listings dry up and we break out in bidding wars.” Like the tug-of-wars with products at Black Friday sales, bidding wars are commonplace in seller’s markets. Buyers have little Wiggle Room Sellers are in the driver’s seat in this market. They dictate the terms, they set the price and they have all the power when deciding who will purchase their home. It’s frustrating for buyers to know that they have no wiggle room for negotiations and must come in with their highest and best offer. Turn these seller’s market characteristics backward and you’ll have a description of a buyer’s market. Inventories of available homes are large, there are few buyers in the market for a home and prices typically . Buyers dictate the negotiations and sellers may find themselves taking less for the home than they hoped or offering concessions to buyers to entice them to buy the home. |
Blog Archive
2019-08-26 15:07:312 Things to Know about Mortgage Interest Rates 2019-08-23 12:58:23 How to Sell and Buy a House at the Same Time 2019-08-15 11:59:23 The Home-Buying Wish List 2019-08-12 14:57:54 HOA? Beware the Rules and Regulations! 2019-08-12 14:56:51 2 Things to Consider Before Buying a Townhome 2019-08-12 14:51:13 No Down Payment? Now Worries! 2019-08-08 16:18:40 How is Your HVAC System? 2019-02-10 21:14:20 Finding your Ideal Neighborhood 2019-02-10 21:13:50 Everything you need to Know about Home Warranties 2019-02-10 21:13:09 Buying a FSBO without an Agent 2019-02-10 21:12:45 Buyers Remorse 2019-02-10 21:12:30 4 Tips to Close Quickly on a Home Purchase 2019-02-10 21:11:28 Your Moving Checklist 2019-02-08 17:42:29 4 Tips for Home Buyers with Boats 2019-02-08 17:41:29 4 Characteristics of a Seller 2019-02-08 17:40:05 3 Ways to get an Amazing Deal in a Buyer Friendly Market 2019-02-08 17:29:41 3 Tips for Attending Open Houses 2019-02-08 17:28:44 3 Things to Know about Buying New Construction 2019-02-08 08:10:37 3 Reasons to Think Twice about a Home 2019-02-07 17:22:51 3 Important Aspects of the Purchase Agreement 2019-02-07 17:09:26 3 Common Home Buying Myths 2019-02-07 17:08:50 2 Things to Know about Home Inspections 2016-09-16 09:06:03 2 Things to Consider Before Buying a Townhome 2011-03-30 11:44:46 Asbestos Removal: Caution and Costs 2011-03-23 22:50:45 What Are Short Sales? |