It's a seller's market when the amount of homes on the market is low and days on the market (DOM) are expected. This can mean bidding wars and homes selling for well over the asking price—a seller's dream. It's a seller's market when the DOM is less than six months. The less the DOM, the stronger the seller's market.

The benefit for sellers can be highly advantageous. If interest rates are low and banks are lending, demand increases even more, creating a buying frenzy that's fun for sellers and frustrating for buyers. This occurs due to standard real estate inventory.  

With historically low DOM in 2021 in the Stuart, FL area, sellers can name their prices. With a median time to contract is nine days, sellers barely have time to complete photos before qualified buyers begin making offers. The key is in pricing your house to sell with a market value listing price. 

It's a great time to sell when the lack of supply of homes gets extreme. The more the supply diminishes, the higher the sale price. This is an essential supply and demand scenario.

Surviving a Sellers Market If You're Buying

If you're hunting for a home in a market with low inventory, there can often be a bidding war for properties in your price range. Follow these tips to maximize the chance you'll close.

1. Treat your hunt seriously

House hunting must be your priority, not your weekend hobby. Check new listings regularly, be prepared to drop everything to view a home when it hits the market, and be ready to make a quick decision.

2. Bring paperwork, not promises

Want to be taken seriously by the seller? When you visit homes, bring a mortgage pre-approval letter, and a proof of funds form from your bank showing you have enough to cover the down payment. 

3. Consider waiving what-ifs

Home buyers often include contingencies when making an offer so they won't lose their deposit if, for example, the home doesn't pass inspection. Waiving contingencies could help you close a deal, but this is not a move for the faint-hearted. To gauge your risks, consult your Realtor.

4. Don't play hardball

This isn't the time to try to lowball on price. Bid aggressively while keeping within the parameters you've set for purchasing. 

5. Broaden your search

You'll increase your chances of finding a property if you're willing to consider homes outside your ideal neighborhood and houses that may need remodeling or renovating.

You know it's a seller's market when DOM is less than six months. Know the market you're in before listing or buying. Knowing the market helps you achieve your real estate goals to obtain the best value!

 

For more information on this and other topics, contact Treasure Coast Insider Blogger Mona Leonard at 772-530-6131 mona@monaleonard.com