If you are looking to buy or sell a home this year, you’ve probably heard that 2018 is forecasted to be a seller’s market, but what exactly does that mean? Simply stated, a seller’s market is a time period in the real estate market when there are more home buyers than there are homes for sale. In terms of supply and demand, this is generally good news for home sellers and bad news for house hunters.
How to Determine if You are in a Seller’s Market
While most of the U.S. housing market currently favors sellers, there are a few variables you can look at to determine if inventory is tight in your specific neighborhood or city.
- Asking Price vs. Selling Price
Compare the original asking price for homes in your area with the final selling price. In a seller’s market, homes typically sell for at least 10% more than the price the home seller originally listed.
- Average Days on Market
Referred to by real estate agents as DOM, this is the median age of real estate listings in your area. A general rule of thumb is that if houses are selling in less than two weeks, it’s a strong seller’s market.
- Home Price Trends
Take a look at home prices over an extended period of time. If you notice sale prices rising steadily, you’re probably dealing with a seller’s market. On the contrary, falling prices can signify a buyer’s market.
The best option for evaluating these factors is to work with a local real estate agent. For instance, if you’re curious about real estate trends in the Southern Adirondacks, consider enlisting the help of a Lake George or Bolton Landing real estate agent – someone who has first-hand knowledge of the region.
What Does a Seller’s Market Mean for Sellers?
As the name implies, a seller’s market is advantageous for individuals looking to sell their homes. If you decide to list your Lake George or Bolton Landing home in a seller’s market, you will likely sell it quickly. You should also expect multiple offers and possibly a bidding war between buyers that nets you a higher sales price than you were asking for.
The biggest mistake that sellers make is accepting an offer too quickly. Another common error is getting greedy and listing the price so high that buyers lose interest. A real estate agent will work with you to determine a fair asking price, and help you evaluate your offers.
If you’re thinking of listing your Lake George or Bolton Landing home, there’s no better time than during a seller’s market. Contact me for a free home estimate and let’s get started on listing your home!
What Does a Seller’s Market Mean for Buyers?
As a home buyer in a seller’s market, you have a bit of a challenge ahead of you – one I do not recommend facing without the help of a licensed real estate broker. Due to the increased competition in a seller’s market, buyers need to act fast, bid high and be ready to make concessions or waive contingencies to make their offer more appealing. A flexible move-in date, increasing the amount of earnest money in escrow, even a personal letter to the seller, can all help to make your offer far more attractive.
The biggest mistake home buyers make in a seller’s market is not getting a mortgage pre-approval letter before they start shopping. The second biggest mistake they make is not working with a local real estate agent.
If you’re looking for a home in the Southern Adirondacks, don’t be discouraged. As a real estate agent for Lake George and Bolton Landing, I can help you find the right homes, at the right price, as soon as they hit the market, and I’ll work with you to write a competitive offer. Get a jump on the spring real estate market and contact me today at (518) 321-1870!