What to do in a Sellers Market?

What to do in a Sellers Market?

A market that offers very little inventory but a considerable amount of competition is defined as a sellers market. Understanding what to do in a sellers market starts with your ability to adjust your strategy if buying or selling. In the end, that can spell the difference between getting a good deal and not finding the home that you desire.

What Sellers Should Do

It may seem like all the advantages are to the seller as the buyer has fewer other places to go. However, it is more than possible to mess up an otherwise good deal because you get a little too greedy or come off in a manner that turns away a potential buyer.

Be Up Front: If there are issues with the home, tell the seller immediately so that you maintain control of the conversation. A potential buyer will appreciate your honesty and lean more to trusting you when revealing issues up front rather than having to discover it for themselves.

Know How to Deal with Offers: It may seem logical to move on a deal quickly, but if you are receiving other offers it can pay to wait just a bit so that you don’t miss out on an even better deal. You’ll have to strike the right balance of waiting long enough until a new deal can reasonably present itself, so be careful.

Know the Competition: See what is selling around you and price your home accordingly. Perhaps you cannot compete with a great kitchen found in one home, but you can price yours so the buyer can do the kitchen remodel that they want.

What Buyers Should Do

You are locked into considerable disadvantages, but the good news is that you do have some leeway if you can take advantage of it.

You’ll Miss Out at First: Understanding what to do in a sellers market for the buyer starts with the knowledge that you are potentially going to miss out on a few great deals. If a home is priced aggressively, know that you may not get the home unless you make an offer above asking price.

Move Quickly: Even in a sellers market there are good deals that present themselves. Just be ready to move on them quickly because they will not last very long. So, get your finances in order and get pre-approved for a mortgage. If you make a strong offer quickly right off the bat, the seller might take it and not wait for more offers to come in.

Remember to always be prepared whether you are buying or selling a home in this type of market. The more you can prepare, the better off you will be when the right deal comes along. In the end, those that understand what to do in a sellers market will maximize their potential for a successful transaction. It pays to be aware and take the right approach.