When I meet with future clients at their Locust Grove home one of the questions that always arises during our consultation is, “is the market good for selling right now?”  If you are thinking about selling your home, then this is a natural question to ask.  While I can sell a home in any market, there can be some differences for buyers and sellers depending on the overall climate of the market.  The terms buyer’s market and seller’s market have been coined to generalize these differences.  Here is what they mean.

At it’s core, real estate is all about supply and demand.  We’ve seen many examples of this over the past few years.  In 2021, the number of buyers on the market was higher than the number of homes, so we saw buyers writing escalation clauses, foregoing home inspections (no, don’t do that), and offering far above ask.  In the past year, rising interest rates have shrunken the number of buyers on the market and sellers have needed to be open to negotiation via closing concessions, pre-occupancy agreements, or price changes to sell their homes.

What is a buyer’s market?

In a buyer’s market, supply exceeds demand.  This means that there are fewer buyers than there are Locust Grove homes for sale.   Because there is less competition for a home, the average days on the market increase.  In this market, buyers can have some leverage in negotiations because sellers who have been on the market longer than desired are more willing to negotiate.

What should sellers do?

In a buyer’s market, it is really important for sellers to make their Locust Grove home as appealing as possible in order to stand out among the other homes on the market.  Decluttering the home and staging it are essential.  Sellers should make any know repairs to the home before listing it (for example, a dripping pipe under a sink or a non-functioning outlet).  Working with your REALTOR® to price your home accurately according to its market value and being willing to negotiate with buyers will all contribute to getting the home sold.

What is a seller’s market?

A seller’s market occurs when the demand for a home is higher than the supply of homes on the market.  In this scenario, buyers must make a decision to write an offer on a home quickly.  Home prices tend to rise during a seller’s market since competition is stronger.  The average number of days on the market for homes is low.

What should sellers do?

In a seller’s market, sellers may receive multiple offers for a Locust Grove home and see the offer price increase from the list price.  Accurate pricing is still important because a well priced home will drive interest.  Even in a seller’s market, homes that are in great condition and well kept will invite more interest.

We aren’t in my ideal market! Should I wait?

I think that it is important to note that even if you are not selling in your ideal market, that doesn’t mean that you can’t be successful.  Understanding the market and knowing what is currently going on in it just helps you to set realistic expectations for selling your Locust Grove home.  Most people are not able to wait for a market shift in order to list the Locust Grove home, and, instead, must work within the current climate. Do you have further questions or need some more information? I am here to help!  Feel free to contact me when you are ready!