If you’ve gone house hunting at all this year, you know it’s a seller’s market. There are less homes on the market than in years past. Prices are rising and great houses are gone in days, if not hours. Why the seller’s market?
Even though the number of homes being built has been growing over the past 10 years, it hasn’t kept pace with population growth. Population growth, job growth and housing starts can fuel seller’s markets.
While there’s increased competition for buyers – and a quick turnaround time for offers – this only means good things for seller. Here’s how to manage this market from both sides of the fence:
So You’re a Seller
The best time to sell is NOW. VP of Real Estate Services Tim Stanford explains, “The best time to sell is when you have buyers – and we certainly have buyers! Multiple offers are happening all the time and we are even seeing bidding wars.”
Buyers are especially frantic in the Spring because grant money is available. Interest rates are at historic lows, which means more people can afford more expensive homes.
So, how do you take advantage of this market as a seller? Get on the market now while Welcome Home funds are just kicking off. Prepare the home for sale. Before anyone schedules a showing of your home, they’re going to look at pictures. Make sure your home looks great, both online and during tours. Consider lowering the asking price. You may attract more buyers this way and it leaves a little room for buyers to start bidding.
So You’re a Buyer
The best part about being a buyer? Grant money! Welcome Home funds of up to $5,000 are available on March 4.
But how do you compete in this environment when everyone is looking?
Be prepared! Get pre-approved at the financial institution of your choice. When you have a mortgage pre-approval letter before shopping, a seller will take you more seriously. You should also consider making your offer more appealing by waiving some contingencies, increasing the amount of earnest money, adding an escalation clause, writing a personal letter to the seller or even offering above asking price.