For today’s sellers, market conditions are like a weather report; they show you what to expect so you can make plans, pick your listing price and decide on your marketing strategy.
One thing is certain: Markets are either going up or they’re going down, so as conditions change, you need to know the long and short-term trends. If the market is heating up, you can ask a little more for your home. If it’s cooling off, you may need to lower your price to attract buyers.
So, how are buyers behaving? Are they making multiple offers and paying over list price? Or are they sitting on the sidelines, looking but not making offers? The answers tell you if you’re in a buyer’s or seller’s market.
A seller’s market is characterized by rising prices, short “days on market”, supply levels of less than six months on hand, and offers close to full price, at full price or above list price offers.
A buyer’s market is characterized by longer “days on market,” inventory supply levels of six months or more, and low offers. To get buyers to come in from out of the storm, sellers must offer incentives such as seller-paid closing costs or throw in the refrigerator, washer, and dryer.
It’s critical that you deal with a market professional to find out where your market stands. Markets vary from city to city and from neighborhood to neighborhood.
Whether you are a buyer or a seller, call or email Cathi at The Lund Group to get the information you need to make the best business decision for you.
Source: Berkshire Hathaway Talking Real Estate August 2018