Real Estate in a Seller’s Market
You may have heard that we’re in a “seller’s market.” Yes, the real estate market has been heating up, and that’s good news for home sellers. On the other hand, for buyers, it means there are fewer choices and more competition. Our goal is for both home seller and buyers to maximize their individual experiences, and for transactions to be smooth and rewarding for everyone involved. Here are some tips that will help both buyers and sellers in today’s market.
Be competitive, but smart
When marketing a home for a seller, hire an agent that will help you achieve the highest and best price and optimal deal terms. When there is a lot of interest in a home, it’s not uncommon for a home seller to want to hold out to receive multiple offers, even after a first offer is received. However, this can be a precarious approach as it’s important to make sure the you capture the opportunity when it’s available. All aspects of the home’s condition should be disclosed in advance as issues can be adjusted for while surprises can kill deals.
For buyers in a fierce market, being aggressive and fast in their approach is a must. Sitting back and waiting is no longer an option when a listing that meets your needs goes on market. You can count on homes to sell quickly if they are priced correctly, so you need to be ready to act decisively.
Have a strategy
Having a strategy is especially important for sellers. Start by carefully considering the active listing competition and recently sold comps when pricing your home. A well-priced home will attract tremendous buyer attention, which will prove even more advantageous in a seller’s market. Also consider the approach to handling offers as part of your marketing and pricing strategy. Taking the first offer may not be your best strategy, but waiting too long to respond to offers may work against you as well. Working with a professional agent that understands a strategy for managing the flow and response to offers can make all the difference in capturing your best scenario and maximizing your results.
Buyers need a strategy as well. Understanding your criteria and budget before you look will make decision making easier and quicker when the time comes. Having a strategy for how competitive you can get before the time you’ll need to make offers and negotiate deals will prove helpful to secure the home of your choice as well.
In both cases, planning ahead and hiring the right professional is key. Buyers in particular should note that even with the best plan in a competitive seller’s market, there may be some lost homes and letdowns along the way — but don’t be discouraged. Instead, allow your professional to guide you on how you can be more effective with your offer and negotiation strategy. Take note of what could have been done differently. Did you act too slowly? Maybe you didn’t offer enough? Learn from these situations and adjust your strategy accordingly.
And, even though sellers may seem to have the advantage in the current market environment, the real estate market is always changing. What might be a seller’s market now could very well shift to a buyer’s market. No matter the conditions of the market, you can rely on the Stein Posner team for all of your South Florida real estate needs. Give us a call today for more information on how we can help you.