DOES THE CURRENT HOME SELLING MARKET FAVOR BUYERS OR
SELLER?

When in the market for buying a new home, there are two main factors that
influence the value of homes you are interested in purchasing. The first being
the fair market value of the home. The second is whether or not the area the
house is located in is a seller’s or a buyer’s market.

Calculating what the fair market value of a home is still
important and very much necessary. However, it is critical to note that the
results are only estimates, based on home sales from at least six months ago. A
great deal can change in six months; resulting in the market shifting from
favoring a buyer’s, to a seller’s, and vice versa.

Buyer’s Markets

A soft market is going to favor the home buyers. This type of market can be
a result of several different variables. For example, there may be many houses
for sale in the area, the economy may be bad, etc.. A soft market may result in
a house being on the market for a long period of time. Therefore, buyers will
have the upper hand, allowing them to make a purchase at a price that is
substantially less than what the seller is asking. It is also very likely that
they will have the opportunity to pace the entire sale process at their own
pace, closing when it is convenient for them.

Seller’s Markets

This type of market is a result of many people wanting to move to an area
that does not have a great deal of homes for sale. As a result homes are going
to be sold fairly quickly for the asking prices, or a price very close to the
asking price. Therefore, you will have little room for negotiation when looking
to buy a house that is located in a seller’s market. Also, you are going to have
make decisions quickly. You definitely do not want to lose a house that you are
interested in by playing games over the price.

In a seller’s market, it is very common for multiple offers to
be made on a house at the same. Often, the highest price will be accepted, with
no negotiations taking place. However, it is typical for a seller to try and get
the most money for their home by negotiating with all potential buyers at the
same time. This is called a bidding war. If this is the case, you can utilize
the following tactics. Firstly, never let your emotions get the best of you by
placing a bid higher than what you want to spend.

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Tip #1. Get your house ready.

Clean up your house, inside and out. Make sure that your lawn is trimmed, and the landscaping is neat. If the house needs repairs, this is the time to make them. Repaint, or give it a good wash. Inside, remove as much personal clutter as possible. Put away collections and pictures, take decorations off the walls and empty closets.

Tip #2. Research prices in your neighborhood.

The single most important factor in determining how fast your home will sell is the asking price. It should be within a few percentage points of other homes in your neighborhood. Check at the county clerk’s office for recent sales of homes in your neighborhood to get an idea of what homes in your neighborhood are selling for, then set your asking price within a few thousand dollars.

Tip #3. Look into a flat listing with a local realtor.

Even if you’re selling your home yourself, you can make use of a local realtor. Many real estate agents offer what they call a ‘flat fee listing’ for homeowners who are selling their homes on their own. The purpose is to get your home listed on the Multiple Listing Service for your area in order to increase the exposure that your home gets. The fee is generally a flat $250-$300, or a small percentage of the final price, depending on the agent.

Tip #4. Get a good photographer to take pictures of your home.

When a realtor is handling your property, they’ll engage a photographer to get the most flattering pictures of your property possible. If you’re selling your home yourself, don’t skimp on the ‘frills’. The photographs that show your house to prospective buyers are the single best investment that you can make. If your house looks good in the pictures, people will want to see more.

Tip #5. List your house on several internet ‘selling home yourself’ web sites.

Shop around for the best deals before listing, but don’t go just by price. It’s far more important to check a little deeper. Search for other homes and realtors in your area, and choose web sites that have a fairly good representation of homes for sale in your neighborhood or city.

Tip #6. Use those pictures to help in selling your home.

The more prospective buyers can see of your home before they pick up the phone, the more likely it is that the calls you get will be from ‘serious’ buyers. Make sure that you include photos of your home’s best features and major selling points.

Tip #7. Be prepared to offer incentives when selling your home yourself.

Since you’re not paying a realtor, you may be in a better position to absorb part of the closing costs, or offer to buy points for a prospective buyer to help them get the loan they need to buy your house. Other non-cash incentives may include details like including the gas grill and patio furniture as part of the deal.

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