You’ll hear the Chicken Little’s talking about it – “The bottom’s falling out!”; “It’s 2008 all over again!”; “Here comes the bust!!”. What are they talking about? The real estate market, of course. And like all things Chicken Little, there’s a lot of drama and hyperbole, but maybe a tiny grain of truth. So, are we in a Buyer’s Market?
What Defines A Buyer’s Market?
A market definition is the simple economic structure of supply and demand. For there to be a Buyer’s market, there must be more houses available than the demand. Additionally in real estate, we see price decreases as well as increased days on market to sell as key signs of a Buyer’s market.
Are We In A Buyer’s Market?
No. And yes. Based on the definition above, the Peninsula real estate market is not a Buyer’s Market. However, never ones to be “typical” we tend to have our own criteria. For our area, we’re definitely seeing an increase in supply, but demand remains strong.
We aren’t seeing significant price drops, but are witnessing a “levelling” out of home prices. In short, the real estate market is definitely more favorable for the Buyer than it has been in quite some time.
How To Buy In A Buyer’s Market
Be patient. One of the great things about being a Buyer in a market more favorable to Buyers is the twin gifts of options and time. Take your time and review your options to find the property that best meets your needs. But, if you find something you love, don’t wait.
Work with an agent to review/qualify properties. More homes mean more leg work. Let your agent segment the wheat from the chaff so you can spend your time seeing only those great properties.
Negotiate, and don’t be afraid to ask for contingencies. As we shift from a strong Seller’s market, there’s more room for negotiation. Price can certainly be negotiated, but so can other items. Specifically, we’re seeing more contingencies again. Additionally, feel free to ask for inclusions. These conversations aren’t killing deals immediately like they were.
How To Sell In A Buyer’s Market
Put your best foot forward. Make sure your first impression is stellar with great staging, and marketing. Presentation will set you apart.
Price appropriately – don’t be greedy. The market isn’t rewarding those who are pricing high these days. If you price high, you’ll lose a lot of potential buyers. Be realistic and price to bring in more.
Be willing to negotiate and accept offers with contingencies, etc. If you price well, you’ll have plenty of interest from Buyers. You may even find yourself in a multiple offer situation.
Understand that your home may not sell over asking. Over asking has been the pattern for the last 8+ years. With the market shifting, we’re seeing more properties sell at asking, or slightly below. See the two points above for how best to avoid this.
Finally, be patient. Your home will sell, but it will take a little longer than it would have a year ago. Don’t panic, and hold strong. If you’ve been smart in your pricing and your openness to negotiating, it’s just a matter of time.
Bottom line, no one really knows what the real estate market is going to do. The best thing is to take a breath, consider your options and make decisions that feel right to you.
IMPORTANT NOTE: I have not and will not verify or investigate the information supplied by third parties.
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