How fast your home is sold depends on several factors. Such factors include market trends and if you are selling your home in a seller’s or buyer’s market. The buyer or seller market depends on the competition in the market. Competition determines your home selling price, how active the listings in the neighborhood area and the leverage you have on the negotiating table. Market trends can change overnight. Whether you are a homebuyer or seller, you need to understand these market trends.
Tips For Buying and Selling In A Buyer’s Market
A buyer’s market trend is where the market has more sellers than there are buyers. Here are a few tips to guide you in this type of market, as either a buyer or seller.
- Target homes with a longer period on the market
Sellers of new listings rarely make price concessions in comparison to those in the market for a more extended period. Just because it is, a buyer’s market does not mean the house is unsellable; it just had less action. As a buyer, do not limit yourself to older listings, though it certainly will give you better chances of getting a good deal.
- Ask the seller to foot the closing expenses
Closing cost for a buyer can go up to 2% or 7% of the home’s buying price, in addition to the down payment. Since you have an advantage of the buyer’s market, ask the seller to meet the closing expenses, which will save you thousands of dollars. If you pay for the closing costs, ask for less in contingencies and home inspection repairs.
- Market and stage your home
As a seller in a buyer’s market, do not despair. Do not wait for buyers to come, but instead, cast your net wide and market your home aggressively. Talk to your realtor about formulating a marketing plan on social media and other platforms in the buyer and seller markets.
Stage your home professionally, which will cost you upfront, but will make a good impression on buyers. Ask your realtor for recommendations or get references from other homeowners.
Seller’s Market
In a seller’s market, there are more buyers than there are homes for sale, and competition for each home is very stiff. Some tips for buying in a buyer’s market include:
- No hesitation
Make fast decisions. Hesitation means you will lose out on a great property to someone else. Gather enough information about the house before going for a showing, such as pending offers and property tax information.
- Acquire pre-approval
Get pre-approval and mortgage quote before house hunting. The pre-approval informs sellers of your seriousness, and you get to know your financial limitations in the buyer and seller markets.
- Be more personal
During a sale, you only deal through agents and official communication. You might consider giving the transaction a personal touch by writing a personal note to seller, outlining why you want to buy the property. It might give you an edge in the stiff competition.
Tips for Selling in a Seller’s Market
- Spruce up the house
Spruce up the house, the better it looks, the more offers you will get. Get a professional home stager to do the job.
- Set your price lower
A lower-priced home will get a lot of attention and more offers. First, talk to your realtor and determine if it is a good strategy. Get an experienced and reputable real estate agent to guide you during these trends in the buyer and seller markets. A realtor will help you to get the best value for your money as a buyer, and to sell your home for the best price. Contact NJLux today for more information.
