Tips For Buying & Selling In a Seller's Market
Not since 2007 has the term "sellers market" been so prevalent in real estate articles. Optimistic Realtors cite the current decline in available housing inventory, the gradual increase in mortgage rates, the rise of median home prices, and the rising confidence of builders as strong indicators that it is now sellers of who have the upper hand.
What does this mean for potential buyers and sellers?
Sellers: You are likely to sell quickly, in addition to receiving multiple offers that may drive up the price of your property. Consider yourself fortunate! Even though your timing couldn't be better, there are steps you can and should take so that you're sure to obtain the best possible price and terms for your sale.
- Hire a real estate professional to help you set a reasonable, attractive price and assess offers.
- De-clutter and clean your home so that it is in optimum showing shape. Just because you're in a seller's market, you still must consider curb appeal and staging tips to encourage potential buyers.
- Beware of greediness. Although your home may well elicit multiple offers, keep your expectations reasonable. While you may dictate closing times and contract terms, be cautious about demanding that the buyer waive an inspection.
Buyers:
- Get your finances in order; sellers of are not going to wait for you to shop for a mortgage. Secure preapproval for a loan and have your proof of funds documentation ready to go at a moment's notice.
- Be realistic about price. Forget low-balling and seriously consider offering the asking price (or close to it) right up front so that you don't get edged out by another buyer.
- Understand that time is of the essence in this type of market. Don't wait for an official open house to check out a real gem--and be prepared to act quickly in making an offer on a property you want.
- Keep requests to a minimum. A clean contract (one without contingencies, requests for window treatments, etc.) is much more appealing to a seller. Also, be flexible about the closing date.
- A larger earnest money deposit might look very attractive to a seller. Ask your agent for advice on the deposit; then consider doubling or tripling that amount. You're going to pay it anyway at closing.
Information provided by Huntsville Realtor Mike Manosky.