High volumes of resale in addition to new construction homes and low mortgage prices all lend to a buyer's market. This article discusses price and first impressions.
Putting a house on the market can be a difficult time for the whole family. The stress of showings and possibilities and what-ifs can be hard for many to bear. Now imagine putting a house on the market when the buyers have the advantage. Read below for more on what a buyer's market is, as well as the two biggest keys in selling a home in a buyer's market.
What is a Buyer's Market?
The phrases "buyer's market" or "seller's market" may be seen as words that real estate agents throw around at random; however, there are significant trends in markets that can create an advantage for either the buyers therein or the sellers therein. Buyer's markets tend to occur when there is a significant amount of inventory available, meaning that there are a lot of homes on the market. It is simple supply and demand: If supply is high, and demand is low, cost drops and buyers have a lot of homes to peruse through, meaning the buying time increases.
This effect is often fueled by new construction projects that make it even more difficult for the resale market. What buyer, after all, wants to purchase a ten year old house for the same price of brand new construction? In addition, when mortgage rates are lower, buyers have the power of choice and the ability to stretch their pockets a little more.
Key No. 1: PRICE
The number one key to selling property quickly in a buyer's market is to price the property accordingly. Overpriced listings take longer to sale and are often accompanied with price reductions. When pricing a home, it is important to look at what similar properties have sold for in the area in the past six to twelve months. In addition, keeping the price near to or even below the price of the active competition will give a seller a bit of an advantage. Overpricing a listing can keep buyers from even making the first appointment, much less making the first offer.
Key No. 2: The First Impression
Buyers have seven seconds to make an unconscious assessment of a house or piece of property. This assessment starts when they pull up in the driveway. If the grass is waste-high or the red paint from the front door is peeling off, this will make a bad first impression. Once they enter the home, they will notice things like dishes in the sink or dirty underwear left on the staircase. In addition, buyers certainly notice smells. The two biggest culprits: pets and cigarette smoke. There are ways to reduce these smells. Limiting the smoking in the house is the first way. Also, allowing lots of fresh air in and using natural fresheners like boiling cinnamon sticks on the stove or putting lemons down the disposal help to make the air pleasant to the buyer.
