You hear it all the time: “It’s a buyer’s market!” “It’s a seller’s market!” What do those terms mean and does it matter anyway when you are trying to sell your house? In real estate terms, it’s actually a hot market or a cold market.
A hot market refers to the fact that there are more buyers than houses for sale. This is also known as a seller’s market. When there is less supply than there is demand in a community, prices are driven higher. The seller benefits from this scenario while the buyer may have to deal with bidding wars, losing out on houses they really wanted because of competition and even not being able to find exactly what they want because there isn’t enough inventory to go around.
Conversely, a “cold market” is one where there are more houses than prospective buyers. This is a buyer’s market because prices are driven down in an effort to attract buyers. Buyers are able to be more selective and they can bid low because there is less competition for the glut of properties available on the market.
So, does any of these local market descriptors really make a difference when it comes to selling your house?
In a Buyer’s Market, a seller needs to think and act smart.
Do your research with the help of a real estate agent. Find out for certain that you are dealing with a buyer’s market – meaning competition is fierce for your size and price range of house. You want to see comps (information about listings and sales from other houses that sold in your specific community.) Remember, however, that list prices are generally not in line with sold prices. Do some research. Shop realtors and go to open houses to see what your house looks like compared to others are on the market.
Price it out. Don’t guess what your house is worth based on what you owe on it or what your neighbor sold their house for. And, most certainly, don’t price your house based on what other houses are listed for. The key to pricing real estate in a buyer’s market is to find out exactly what market value is, based on past Find out the true market value of your property and price it accordingly. You may want to price it at slightly below market value to set yourself apart from the competition.
Focus on the Local Market. In the papers, on the Internet and the TV news, the real estate market news isn’t going to focus on your hometown. These reports are regional and even national overviews of the market at-large. Values fluctuate immensely, even within small towns. For example, one community may be sought after because children there go to a particular school. If your house is based there, you may have a small Seller’s Market in a town that has a glut of real estate for sale.
Choose the professionals you need to help you market, sell and close your real estate transaction carefully. Everyone wants to get paid and, if they do their jobs well, they deserve it. However, know the rates your realtor and real estate attorney will charge you. Know, too, that like everything else, you get what you pay for in life. Choosing the most knowledgeable lawyer, for example, can save you headaches and money in the long run. A savvy real estate attorney who knows the local market and has guided many other sellers through the process can foresee problems and work them out before they become deal breakers.
Contact Joel R. Spivack Esq. for assistance with your real estate transaction. He knows Cherry Hill and the surrounding communities and has been assisting clients with house purchases and sales for more than 25 years. Talk to him today for free about your real estate deal.