If you’re thinking of buying or selling a home, you’ve probably heard all sorts of terminology thrown around, and some of it might seem a little confusing. Perhaps you’ve heard that it’s a “buyer’s market” or a “seller’s market.” But what do these terms actually mean and how can they influence your home sale?
Low inventory on the real estate market means greater demand for what inventory is available. If you are selling your home, this is good news for you. As long as demand is higher than supply, you could find yourself poised to benefit from the market conditions. And just what benefits might you expect to see?
If there are more prospective buyers out there pounding the pavement in search of a new home, you’re in luck; many of them could pass through your door, and they could even end up competing against each other. You might find yourself with multiple offers or see potential buyers face off in a bidding war. It certainly isn’t a given, but the likelihood is that increased competition among buyers will work in your favor when there are fewer properties available for interested buyers.
Getting Top Dollar
You are far more likely to achieve your asking price if there are fewer homes on the market. Nervous buyers in need of a home are more desperate if they are worried that they might be outbid by another buyer. That isn’t to say that you won’t see lowball or less attractive offers, but it all depends on the buyer’s motivation to make that purchase. While you can’t know how driven any given buyer might be, chances are there are some buyers finding themselves in the position of needing to move quickly – particularly if they’re already sold their current residence and need a new place to live immediately.
A Quick Sale
For buyers worn down by a seller’s market – tired of making offers, only to lose out to another interested party – a quick sale might be desirable. Particularly for buyers who have been house hunting for a long time to no avail, you might find that your home, fresh on the market, could get snatched up quickly. Lucky for you! This means less angst for you keeping your home show ready as you worry for long weeks or months about whether anyone is going to make you an offer.
Less inventory on the market means that buyers are going to have to pull out all the stops if they want to snag your home before someone else does. And this might mean that you have the upper hand when it comes to negotiation on the terms of sale – from selling contingent upon your own home purchase to letting minor issues slide on a home inspection. If you have more than one buyer knocking at your door, you’re in a position to take the best offer available to you.
As with any market, the real estate market is highly variable by location, supply, and demand. If the stars align in your favor, you could see a low level of market inventory as significant advantage when you list your home to sell.