Real estate markets can vary significantly from one area to the next. In general, the majority of the U.S has been in a seller’s market since the beginning of 2021. The difference between a buyer’s and seller's market is quite simple. A buyer’s market is more favorable to buyers because there is more inventory and lower prices. A seller’s market is more favorable to sellers because it means low inventory, which leads to increased prices. With bidding wars and a constant tug of war between supply and demand, a seller’s market is a difficult climate for buyer’s agents today. However, there are a few steps that agents can take to sell more homes in the existing seller’s market of 2021.
Encourage buyers to be aggressive.
If you are serious about buying a home in a sellers market, it is important to understand what it means to be aggressive. When the market is more favorable to buyers, you may find success by making a low, safe offer. However, in the competitive market today, most buyers must make a strong first offer. Real estate agents almost always have more insight on home prices in the local area. By educating your clients on local market conditions, they are more prepared to make a competitive first offer when they encounter the right home.
Find the right fit for foreclosures.
While foreclosures are often overlooked by many buyers, many foreclosure properties offer great potential for a future home. With lower prices and clear titles, foreclosures present buyers with an opportunity to purchase a property below their budget and customize their home to their liking over time. Although foreclosures may be appealing to some, it is important to note that there are risks associated with buying a foreclosure, so it is essential to come prepared for paperwork and potential issues with the property before making a decision.
Suggest that buyers expand their search.
More often than not, buyers have a particular area in mind when they begin their home search. While it may be challenging to redirect a buyer's focus to a new area, this may be their only option in a competitive sellers market. High prices and low inventory can make it extremely difficult to find the right home. However, real estate agents may want to consider presenting other nearby areas to increase their chances of finding a suitable home. Sometimes, the next town over may be significantly cheaper and have more inventory.
