Last month we approached a Seller’s Market for the first time in years. This means different things depending on whether you’re looking to sell, buy or both in the next little while. Not sure what a Seller’s Market is? Check out my blog post here.
Thinking of Selling?
If you’ve been thinking of selling but have been on the fence, waiting for the market to pick up, it’s here. In a Seller’s Market there tends to be upward pressure on pricing and sales happen quickly. If your home is priced right and presented well it will sell. Notice I mentioned priced right. A Seller’s market doesn’t mean double the price and hit one out of the park. At 19.5% (a Seller’s Market is 20% or higher) that means about 1 in 5 properties listed have sold that month. In real estate, those are good odds, but that still means 4 of 5 haven’t sold.
Thinking of Buying?
If you’ve been thinking of buying although we’re technically still in a balanced market, we’re close enough to a Seller’s Market to give Seller’s Market tactics some serious consideration. You can expect well priced properties to sell fast.
Be prepared to move quickly.
If I send you a listing and you think it might be worth looking at, we should be setting up an appointment ASAP. On your lunch break or right after work. If you wait for the weekend it’ll likely be gone.
Have your ducks in a row.
You’ve probably heard me mention this before but it’s critical you’re as ready to write a solid offer as possible. Make sure you’ve spoken with a mortgage broker or your bank. Don’t have a contact? Let me know and I’ll get someone in touch. Putting in an offer subject to the sale of your home is going to be a harder sell in a hot market, and pretty much a non-starter in a competing offer situation. If you need to sell first let’s get it sold, and we can put a long close on it.
When competing, conditions can make all the difference.
Pretty much every purchase offer comes with conditions. I’ve seen fewer or no conditions win out over the highest offer in a competing offer situation. “A bird in the hand is worth two in the tree” as they say. Consider how quickly you can remove your conditions and which ones you really need to include.
Don’t be afraid to compete.
I’ve had quite a few clients say they don’t want to compete for a property and I understand. It can be tough emotionally and disappointing if you don’t win, but I’ve always looked at it this way. If you and 4 other people want the property at close to the price you’re going to pay for it, there’s a good chance 4 other people are going to be interested a year later if you’re forced to sell.
Thinking of Selling and Buying?
Both of the above scenarios apply. You need to be ready to move quickly on your purchase and your home will likely sell quickly if presented properly.
Consider bridge financing.
Instead of a “subject to the sale of your home” offer consider talking to your bank or mortgage broker about bridge financing, allowing you to buy the home you want as soon as it hits the market, then list and sell your home without the extra pressure of being homeless, or buying something with more compromises than you’d like due to time constraints.
Prepare to move quickly.
We discussed this earlier for buying but what about for selling? Even if you’re not going to list immediately get your home ready.
- Pack up what you can and move it into the garage.
- Take care of that honey-do list, the leaky faucets, touch-up paint etc.
- Get a market analysis done so you have an idea where you’re at. Don’t worry; we’ll review it when you actually list.
- Review the listing and purchase contracts ahead of time so you’re familiar with what you’ll be signing.
The market is still balanced but it’s shaping up to be a great year for real estate; the best in years. Understanding where the market’s at and being prepared can get you what you want and need with the least stress, and potentially save you thousands.
If you have any questions or want to get ready feel free to get in touch.