In a seller’s market, homes sell faster and for a higher price, leaving buyers in stiff competition with each other to “win” the home.
Currently, the real estate market in 2020 has been a strong seller’s market. That means the demand is exceeding the supply. There are many buyers looking for properties and real estate inventory remains low. In a seller’s market, homes sell faster and for a higher price, leaving buyers in stiff competition with each other to “win” the home.
Another trend happening in 2020 is consumers flocking to the rural areas to get a healthier lifestyle and for “social distancing” purposes. In fact, United Country Real Estate reported a 110 percent increase in website traffic for those looking for homes in the country, off-the-grid properties, recreational and hunting land and log cabins compared to last year. United Country agents also report that they are struggling to keep up with the demand.
If you’re a buyer looking for property, here are some tips to help you get a leg up against the competition:
- 1. Get pre-approved and have the funds available. If you get pre-approved, you’ll know how much you can afford and how much buying power you have.
- 2. Get an experienced agent to help you. Get someone who can explain the process, make an appropriate offer and give negotiation advice. It’s also important to get an agent who is experienced and responsive.
- 3. Don’t lowball. Normally, buyers will make an initial offer for a little below listing price. If you do this in a seller’s market, you won’t get anywhere. Competing buyers often offer above the listing price in order to remain in the competition with other interested prospects.
- 4. Don’t wait around. Inventory is very limited in a seller’s market, so if you’re waiting for the perfect home, you might be waiting a long time. Stay alert and keep an eye out for properties that you want to learn more about and book a showing right away or you might miss out.
If you’re a seller who is thinking of putting your property on the market, here are some things to consider:
- 1. Prepare your home for sale. Make sure your house is clean. Staging the home may help as well. This will attract more buyers to want to see your home.
- 2. Limit showing hours. By limiting the times your home is available to view, you might get multiple buyers looking at once, amping up the competition.
- 3. Price reasonably. You will most likely sell for a higher price than you bought it for, but make sure your initial asking price isn’t too high that the appraisal comes back and the buyer backs out.