Even if you don't have any experience in real estate, there is a good chance you have heard the terms "buyer's market" and"seller's market." We are currently experiencing a seller’s market in Smithtown, NY. We've put together a brief explanation of what that means and how it can impact buyers and sellers in Smithtown, NY.
What is a Seller’s Market?
A seller’s market occurs when the number of available homes on the market drops below the average for the area while the demand remains the same or increases. When this happens, a number of things can happen that will make sellers pretty happy.The average number of days a house in on the market goes down and the average selling price tends to go up. In Smithtown, we usually have around 220 home on the market. When the number of houses on the market drops closer to 183, as it has now,we are looking at a seller's market.
Tips for Buying in a Seller’s Market
1. Be Prepared to Move Quickly
There are many reasons to ensure you have been pre-approved for a mortgage early on in the house hunting process. This becomes especially important when you are looking to buy in a seller’s market. In a seller’s market, it’s possible that a home may have multiple offers as soon as the day after it has been listed. The more paperwork you have completed in advance, the quicker you are able to move through the offer and selling process.
2. Limit your Contingencies
Certain contingencies may not be able to be avoided. But it is important to recognize that if a seller has a choice between a higher offer with several contingencies versus a lower offer without any contingencies, a seller may choose the lower offer that is less likely to get hung up in the approval process.
3. Make an Aggressive Offer
In a seller’s market, sending in a low offer is just wasting your time. Rather than countering with a higher offer, the seller is likely
to simply reject your offer. Don’t exceed your budget, but when making an offer be honest with what you are willing to spend on the property. If you find your dream home, make an offer that will catch the seller’s attention.
Tips for Selling in a Seller’s Market
1. Price to Sell and don't rely on Zillow
Even the CEO of Zillow's "Zestimate" was $700,000 over what he actually sold it for.
It can be tempting to list your house for as much as you think it might possibly get, especially in a seller’s market. But in a seller’s market inventory moves quickly. If you price your home too high, you may find yourself outside of many buyer’s budgets. As a result, buyers might not even look at your listing, which could result in your home staying on the market a bit longer than expected. Homes that don’t sell quickly in a seller’s market immediately raise red flags for buyers.
2. Curb Appeal is Essential
In a seller’s market, buyers are expecting inventory to turn over quickly. Buyers in a seller’s market are ready and willing to put their best foot forward for the right home. They recognize that time is of the essence and are less likely to arrange a time to view a home if it doesn’t grab their attention from the curb.
3. Consider an Incentive
Just as a buyer who is willing to forego certain contingencies is likely to be more attractive to sellers, a seller who offers incentives is more likely to catch a buyer’s eye. The biggest incentive for a buyer is to price your home fairly and show it in excellent condition. But, beyond that, you may want to talk to your real estate agent about other incentive options.
Whether you are buying or selling, when navigating a seller’s market, you need an expert, local real estate agent by your side. Jim Haydon has nearly two decades of experience to put to work for you. Contact Jim today to list your home or start your house hunting journey in Smithtown, NY today.