The two most dreaded words to any buyer….. “Seller’s Market”.
I get asked the question, “So, what’s the market looking like now?” a lot. My answer is typically, “It’s going great! People are getting top dollar for their homes.”
That is a great answer any seller would want to hear, but what about those who have already sold, are currently renting, or just want to purchase their first home? Bad news guys… It truly is a Seller’s Market. Seller’s markets are when there simply isn’t enough inventory (houses) to be sold compared to how many buyers there are trying to buy a house. A healthy market, in my opinion, is about 4-6 months of inventory. We have been looking at 1-2 months inventory lately which means a few things.
- Sellers are selling for top dollar. Buyers are still able to get really good interest rates right now, so that is still enticing buyers to buy. The economy is ever-so changing. When was the last super stable economy since 2001? Every Friday, lenders and Realtors are on the lookout for what rates are doing. We have been fortunate lately to hover around the 4% mark or just under that. This is appealing to buyers who remember when 6-7% was a good rate.
- Good listings are typically already under contract by the time Zillow and other third party sites get their hands on them. If there is a need for housing in a particular school district and a really good house comes on the market, it is typically under contract in less than 48 hours. Zillow doesn’t even get the current listing information for at least the first 24 hours which really hurts buyers not using an agent with direct access to listings as soon as they hit the market. Get an agent who understands the market and who can navigate the dreaded multiple offer scenario.
- So, your agent sent you over a brand new listing that is so new it doesn’t even have pictures up yet. You scurry over to the new listing and made sure your agent set up an appointment right away so you have a chance at buying the house if it fits your needs. (No house is EVER going to fit ALL your needs, but that is a totally separate blog post!) Now what? You better have your checkbook in hand, cash in the bank, a pre-approval letter from a reputable lender, and be ready to pull the trigger. How much should you offer? People are still getting “deals” on houses, right? Wrong. Long gone are the days of offering 5-10% under asking price. We are seeing more and more houses going under contract for full asking price or 3-5% over asking price. Price isn’t the only thing to consider though. All terms come into play for a multiple offer situation. How quickly can you close? How much earnest money (skin in the game) are you offering? What are the contingencies? Working with an experienced agent is the ONLY way to go in a Seller’s Market.
Even though this video is two years old and not filmed in Atlanta, it still gives great tips on how to set yourself apart in a seller’s market.
If you are thinking about buying your first house or your tenth house, call us today! We are eager to help you negotiate through the dreaded Seller’s Market. We have over 15 years of experience and have lived through a Seller’s Market before back in 2004-2007. We are highly trained and ready to help you find your next place to call home.