Selling in a Buyers Market: How to Sell & When to Sell
The “hotness” of the real estate market and whether it favors buyers or sellers is largely dependent on factors that are specific to the region in question, such as economic conditions, extreme weather, and the time of year you are in. If the amount of housing inventory far outweighs a number of buyers that are looking to purchase, we see what is known as a “buyer’s market.” Here are five key things you need to know about selling your home in this unique market, and how to get the highest possible asking price.
Understand the Kind of Market that You are In
This is where working with or speaking to an experienced and qualified real estate agent comes in handy. Essentially, there are two ways to determine if the market favors the buyer. The first is to identify the average number of days on market for properties that are listed in your area. If the number ends up being 60 days or higher, you can consider yourself to be in a buyer’s market. The second is to look at the sales to listings ratio, this basically highlights the balance between supply and demand. A ratio that is less than 35 percent indicates the conditions are more favorable to buy than sell. A knowledgeable real estate agent will be able to show you the whole picture and work with you to ensure that you get the best price.
Prepare Your Home Accordingly
When in a buyer’s market, the properties that show well and are in move-in condition, sell faster than properties that are visibly in need of a little TLC. Although, it might seem kind of obvious, presenting a home that buyers can see themselves living in –the way it is already- is critical. This means that you should ensure that you have created a clean and open feeling throughout your home by packing away anything that is not absolutely necessary, off-season clothes, equipment and clutter should all be packed away and out of sight. Rearrange or put some furniture in storage to reduce clutter and do your best to depersonalize your space – this can be difficult for some, but understand that it is only temporary, and will help to get your home sold and off the market faster. Consider painting over any bold colors with a neutral palette, and doing some minor landscaping and gardening if your yard is not already in top condition.
Price Well and be Willing to Negotiate
Pricing your home can be a nerve-wracking affair, this is another area where an experienced agent can provide knowledgeable insight and help you to make a solid decision. Once your home is priced and officially on the market, it is important that you are open to ever offer. This does not necessarily mean accepting the first offer that comes in, but understanding that in a buyers market often prospective home buyers will go in with a lowball offer to test the waters, don’t be afraid to negotiate and see where it leads.