If you’ve noticed that it’s starting to get busy in the real estate market, you aren’t alone. It’s undoubtedly been an odd year for the market, but the current low-inventory/high-demand situation will keep homes moving. Despite having an available inventory that is down 38% in the past five weeks, buyers are still interested in finding the right home for them, which has reduced time on market by 13 days. This may be part of the reason why listings have increased in median price by 11.1%. When you’re facing a situation like this, what can you do to make sure you can buy or sell a home that meets the buyer’s needs? Here are a few suggestions to help you get started.
Buying or Selling a Home with Today’s Real Estate Trends
Let’s start with the buyer’s side. What features in a home are flexible and which ones are deal-breakers for the buyer? Would a 2.5 bath be okay or does it have to be a 3 bath or better? Thinking about what you are willing to bend on opens up more homes to you to consider. With a 9.4% increase in month-over-month and year-over-year existing home increase, you may need to be more flexible. Don’t be afraid to consider the potential of a property that has a lower asking price. Does it look like an addition would fit nicely upstairs or to the back? It may not be perfect now, but if it would do while making improvements, the lower asking price may be an incentive to buy a less-than-perfect home.
But what about sellers? With the 2.2% drop in September pending house sales, you also need to be flexible to sell while the market is hot. Would you consider adding a renovation budget for a higher asking price? With asking prices increasing, you may consider making some concessions to take advantage of a hot seller’s market. One of these options is a renovation budget in the escrow. If you’ve had your home listed in the past without a contract closing, it could be a good time to relist. The house that you couldn’t sell before might be a good prospect for buyers now.
By putting a few of these tips into play, you’ll be much more likely to find a buyer or seller, making everyone happy during a time when inventory is limited. Take the time to really get to know what buyers are looking for and how flexible you can be as a seller can be to help make the process easier. In this seller’s market, buyers may need to pay a bit more for their dream home.