Prime Time for Buyers
In a buyer’s market, buyers have the upper hand. Typically the market — either nationally or locally — is flooded with properties, which makes sellers eager to cut through the clutter and make a deal. For buyers, that means below-market value prices on homes, sellers willing to negotiate major price cuts or consider significant concessions, and much, much more.
Beyond sellers’ willingness to make a deal, buyer’s markets are often accentuated by positive economic conditions that favor those on the hunt. For example, there could be very low interest rates on mortgages and home loans — these pro-buyer terms paired with an excess of properties on the market and eager sellers is a trifecta for those looking to make a purchase. They’ll likely get their pick of properties, at the best price and the best rates. It’s a win.
Prime Time for Sellers
In a seller’s market it’s home owners who are in the driver’s seat. Again, economic conditions tend to be good in a seller’s market, leaving buyers with more money and more freedom to lob offers. But, despite interest, there are limited properties on the market, leading to bidding wars for the best properties, plus above ask offers. It’s also not uncommon for buyers to do anything and everything to up the value of their offer. For example, they may offer all cash or a quick close, to help their bid rise above the rest.
If you’re selling in a seller’s market, you’re likely in great shape. While these conditions don’t necessarily guarantee a speedy close or above-ask offer, it’s more likely you’ll reap benefits like these then you would in a flat, down or buyer’s market. And if you’re thinking, “I need to sell my house for cash – fast!”, this is your market. If ever your house was going to command a compelling cash offer, it’s in a highly competitive seller’s market.
That said, be sure to set a reasonable bar for yourself and your home sale process, even if you’re in a hot market. Often sellers get excited about what could be, pricing their home higher than they normally would, or ignoring major repair work that needs to get done. While, yes, these market conditions favor sellers, that doesn’t mean you should ignore common sense. Ask your real estate agent to pull comps for recent listings and home sales, and be sure your list price is in line.
And, above all, don’t wait for the “perfect” offer. If you receive a good offer from a quality buyer, it’s in your best interest to move ahead. Sometimes sellers wait for a bidding war to break out, or for an incredible above ask price — and, often, it never comes. That seller winds up buyer-less — and if that goes on for too long, they could find themselves in a buyer’s market…
So what to do when the Buyers
have the upper hand?
When the market is so saturated with homes that it seems impossible to get yours front-and-center?
When buyers know they’re in control, and want to see what they can squeeze out of you?
Welcome to a Buyer’s Market.
Not only does selling in a buyer’s market tend to be a much slower process, it can often yield less profit for a seller. It’s not uncommon for a seller to accept an offer that’s well below ask — sometimes, even, 10% or 20% less than the list price. Besides low ball offers, many sellers have to deal with excessive concession requests — that the seller will pay closing costs, for example — or other contingencies, such as pushing the seller to make costly home repairs before close. Some sellers may even get offers for non-traditional purchase agreements — rent-to-own deals, for example, or owner financing. And, in many cases, sellers agree to these less than ideal offers.
In a seller’s market it’s easy to get desperate and, in those moments of desperation, panic about your home sale prospects. And that’s when mistakes happen. That’s when bad offers get accepted.
Selling Your Home
in a Buyer’s Market
Now the good news: there are easy, effective ways to get your home sold in a buyer’s market. While some agents and insiders may suggest waiting six months or more then relisting, it’s often not realistic — often circumstances change and homeowners need to sell ASAP.
If you find yourself needing to sell in a buyer’s market, focus on:
- Pricing it right
While you don’t want to undercut your home’s value, you also don’t want prospective buyers to dismiss your listing right off the bat. Have your real estate agent pull comps and go from there. If you don’t have any interest in the first week or two, consider cutting 2%-10% from the price depending on your ask. Chances are this will generate some added attention from new and existing buyers.
- Helping your house stand out
Whether it’s beautiful staging, modern upgrades or, even, a batch of cookies baking in the oven, it’s important to help your house stand out from the rest, especially in a buyer’s market. Because there are so many houses on the market, it’s hard for buyers to keep everything straight. If your home has an amazing feature or unique detail, chances are it will stand out that much more — and that could be the difference between getting an offer and not getting an offer.
- Freshen up
In that vein, be sure your home is clean, presentable and in good, working order. Buyers are much less tolerant in a buyer’s market, since they know another great home is right around the corner — literally. Be sure your home is always clean, and that it looks, feels and smells fresh. Open windows, let in natural light and help prospective buyers imagine life inside. That’s the first step in generating an offer…
- Fix things NOW
Many sellers assume their home is up to code on all counts, so they wait until they have an accepted offer to see what the inspection report holds. If you’re concerned about market conditions, get a pre-sale inspection by a third-party home inspector. They’ll be able to suss out problems immediately, helping you get your home in sale-ready condition. And, if things do check out, you’ll be able to tell prospective buyers that your home passed inspection — always a positive!
- Got some interest — or, even, an offer?
The final tip is simple: Be Open and Be Flexible! While you don’t want to — or need to — accept the first low ball offer that comes your way, be open to every bid that lands in your inbox. Your initial reaction may be NO WAY when a buyer offers 15% under ask — but that same buyer may be offering you all cash and a quick close, which could have a tremendous value to you. For example, if you’re thinking, “buy my house fast for cash” and this buyer is willing to make a deal, the dollars lost may be something you should overlook.
in a Buyer’s Market
Who’s always buying, whether it’s a buyer’s market or a seller’s market? Buy Every Home. If you’re in the “buy my house fast for cash” bucket or, even, fall under the “buy my ugly house” umbrella, we want to hear from you. Our comprehensive seller-driven process takes you from homeowner to home seller in just one day. Contact us now and have an all-cash offer by tomorrow, then move to close in as little as 14 days. It’s that easy.
In buyer’s markets, we hear from countless sellers who want to cut through the clutter and make a deal. They don’t want to deal with the hassle of lengthy negotiations, low balled offers or endless maintenance and repairs. And, above all, they don’t have six, nine or even 12 months to wait to sell their home. That’s where Buy Every Home comes in. The process is simple, streamlined and backed by thousands of satisfied sellers — sellers who called Buy Every Home shouting, “buy my home fast for cash!” and walked away just weeks later, with that cash in hand. Ultimately, it’s your choice. Do you want to wait for the perfect buyer in a less than perfect market — and, likely, have to spend time and money getting your home where they want it to be? Or does “buy my house fast for cash” sound more appealing to you?