What is a Seller’s Market
What is a seller’s market?
Real estate throughout Southern California has shifted into a sellers market. This change comes about when the demand exceeds the supply. It is up to the seller to make the right decisions to truly take advantage of this market.
In a seller’s market, houses naturally sell faster due to the level of competition of buyers. Raising the list price to above market price is not unexpected. However, if you are going to make this choice, it is advisable to have your home in good condition. Having your home cleaned and potentially staged can be a good way to bring in buyers who perhaps were already looking at your list price to begin with. You could also go with an opposite strategy and put your house at slightly below market value. This creates a situation known as a bidding war.
Bidding wars are normal during seller’s market. Homes that attract many potential buyers can receive multiple offers in a day. The price is increased as they attempt to outbid the others in the hopes that the seller will take their offer. For the seller, while a bidding war is exciting, it is still important to carefully review the offers received. Just because someone placed the highest bid does not mean they have the financial backing to actually complete the transaction. Taking your home off the market only to then have to put it back on later, does not mean that there will be the same interest as before. Look for bids where the interested party has already been pre-approved for a loan; meaning they have guaranteed access to the loan.
For buyers, being pre approved for a loan does give you a leg up but you are still at a disadvantage in this type of market. As a buyer, you have to act fast so if there is a home you like, it is not the time to mull over the decision. Calling your agent to put in a bid should be done as soon as possible. If you have the ability to, offering an all-cash offer, could be the difference between getting the home and not. Sellers like all-cash offers because it clears away almost all potential issues that could occur during closing. Should you find that you keep losing out on homes, staying positive and being patient will help you get through this. It isn’t worth settling on a property because you couldn’t find one that met all your needs. Buying a home is a big investment and is also a commitment to hold to in the future.
Navigating a seller’s market can be stressful, whether you are buying or selling. Having the right realtor can make all the difference. If you are looking to navigate Ventura County real estate, we are here to help.
