Saturday, March 16, 2019 / by Connie Tracy
When you begin the home selling and buying journey, there may be several terms used that you're unfamiliar with. Buyer's market? Seller's market? Balanced market? To help get you started, I've broken down the difference between all the markets and some tips.
NEGOTIATIONS IN A SELLER'S MARKET-
When there are more buyers than properties ie: when inventories are low, you are in a favorable position when it comes to negotiations. In a seller's market, properties sell fast and buyers therefore are more like to make concessions. Prices tend to be trending upward and in a very strong sellers market multiple offers and bidding wars are not uncommon.
STRATEGY- (Hold your ground)
* Negotiate hard on the price in a seller's market you can often hold firm on your asking price. In fact, you may even have several buyers at the table at the same time. If that is the case, always consider responding with a multiple counter offer to get all buyers highest and best.
* Look for "clean" offers that are simple and straight forward.
* Negotiate hard for terms that best suit your needs such as the closing date.
* Consider not accepting offers that have a home sale contingency. In a seller's market you can often wait briefly and then get another offer with out the often bothersome contingency.
NEGOTIATIONS IN A BUYER'S MARKET-
In a Buyer's market you are clearly at a disadvantage. Buyers are few and far between and once you have an interested party, the challenge is getting the best you can without risking that the buyer decides to walk away from the negotiation. Prices tend to be soft or even trending downward slightly at times.
STRATEGY- (Be flexible and prompt in making concessions)
* Spend the extra tein and effort to present your property in its best light. Make sure it's clean, well staged and there are no significant repairs needed.
* Set your price at or very near to the figure you are willing tho sell at. Buyers have a lot to choose from and too high of an asking price will kill buyer interest.
* Be as flexible as possible on agreeing to buyer terms such as closing cost concessions and closing date.
* Accept offers that have a home sale contingency as long as they also include a bump clause.
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NEGOTIATING IN A BALANCED MARKET-
When supply of homes on the market is balanced with the demand of all the buyers who are looking neither side feels urgency and both sides can give equal importance to their own personal priorities. Expect the back-and-forth counter offer phase to take longer than it does in either a buyers or sellers market. After several rounds of paperwork, buyer, and seller might agree to do 50-50 split of their differences on price, terms and personal property.
If you work hard to be your best at negotiations, this might just be in your future. SUCCESS!
Check out my website at connie.viewhomesinspokane.com for more helpful articles for buyers and sellers! The more you know, the more prepared you will be in this competitive market.
Ready to sell your home? Want to find the home of your dreams? Have any questions?
Call or shoot me a text and I will be happy to share more with you about selling or buying a home!
Your Friendly Real Estate Expert...Cheers!
Haven Real Estate Group