What Our Current Market Means for Sellers
TRAY SCHMIDT - REALTOR®
There’s no doubt things in the real estate industry have changed over the past few years. One big change we’ve experienced locally is the consistently rapid speed of the real estate market. With continued low to modest interest rates over the past several years, the buyer pool has grown immensely while residential development and active listings have struggled to keep up.
A common misconception with this market is that it's “just a lack of inventory.” However, it’s less of a problem with inventory and more a product of the increased demand for quality value-yielding homes.
So what does this market mean for sellers?
It means:
1. More buyers -> more competition for your home
2. More competition -> multi-offer scenarios
3. Multi-offer scenarios -> wading through a stack of offers with many similarities but also distinct differences (clearly understanding these complexities could mean the difference in you taking home more or less money on closing day)
With average sales prices continuing to tick up, the potential for more money for sellers also goes up, but buyers also have raised expectations. So, while buyers may be willing to pay more/or give up more to buy a property, in return, they’re going to expect that they purchased a solid product.
Positive floor plans with a workable layout, indoor & outdoor entertainment space, updates, and well-maintained homes are what buyers expect to find in today's market, but that does come at a cost. Sellers have the leverage to negotiate buyers’ waiving of rights and escalation clauses. On the flip side, with the significant increase in sales prices, appraisal shortfalls have become more common. These complications were rarely considered in previous markets.
Now, more than ever, having a trusted Realtor is in the best interest of anyone looking to sell a home. Many might say, "the market is so hot, I can just sell it myself,” but the work Realtors do behind the scenes (experience with the new complexities, knowledge of the market, expertise in negotiations) can make the difference in getting your home sold more quickly for more money.
