In a buyer’s market, there are more properties for sale than there are buyers looking for homes.
This gives homebuyers the edge when it’s time to negotiate, as the largest number of listings compete fiercely with the rest for the attention of a relatively small number of homebuyers.
And while a buyer’s market seems like a good time for people looking to buy real estate, a buyer’s market doesn’t exactly look like an ideal setting when adding a “sign at sell” on your property.
Homeowners in this type of market need to be realistic about how the market will affect both the price at which you can sell your home and the time it will take to sell.
Indeed, in a buyer’s market, properties generally stay on the market longer and a higher proportion of homes with a “sale sign” are sold at a discount.
If you find yourself selling your house or apartment building under these conditions, here are some helpful tips for home sellers in a market where buyers have more bargaining power.
What is a buyer’s market?
As mentioned, there is a greater supply of homes for sale than there are buyers in a buyer’s market. This means that the terms and conditions are favorable to home buyers.
Here are the main signs that you are selling in a buyer’s market:
- Inventory levels are above average
- New home construction is on the rise (indicating high supply levels)
- It takes longer to sell
- Properties are sold at listing price or below
- Property values go down
- A high percentage of distressed properties available, such as foreclosures and short sales
- A low number of average bids for properties
- Lack or absence of auction bidding wars
What does a buyer’s market mean to sellers? As a general rule, sellers should expect:
- Reduce their selling price
- Offer incentives to close the deal
- Your property can stay on the market longer
- There is a lot of competition in the local real estate market
- Do not receive multiple offers
Should you sell your property in a buyer’s market?
Since sellers are generally at a disadvantage under these conditions, should you try to sell in a buyer’s market?
Most experts advise waiting until the end of the buyer’s market if you are selling your property. This is the best course of action, especially for homeowners who find their home is on the market for long periods of time.
As we said in our previous article: How to buy a property in a buyer’s market, it is important to remember that markets are cyclical. This means that even the longest market of sellers or buyers will eventually end as market dynamics change.
It also means that the market tide could turn in favor of the sellers in just a few months, which could help you sell your house or accommodation faster.
Also, remember that there are markets within markets across the country. This means that even if your local market is now a buyer’s market, there are areas where conditions are simply changing in favor of sellers.
And on that note, we recommend consulting a realtor, as they will have their finger on local market conditions and can offer specific strategies for successfully buying or selling in your area.
If you prefer to do things on your own, we advise you to keep a close eye on vital data and trends (e.g. announcements, demand and supply, etc.) that can help you navigate the market. in order to get the best offer at the best price for your property. .
Tips for selling your home in a buyer’s market
Of course, pulling out of a buyer’s market is not advice for everyone, as circumstances can vary greatly from person to person.
If you’re still reading this article, there’s a good chance you have to sell your home for financial or personal reasons, even if the odds are stacked against you.
But just because it’s a disadvantageous market doesn’t mean you have to let buyers walk all over you. Here are our top tips for selling your property in a buyer’s market.
- Make sure the price is right
Before listing your property, make sure your price is based on comparable sales in your area.
By pricing your property competitively (meaning it is equal to or lower than comparable properties in your area), you will be able to get good price offers from potential buyers. .
- Get your property in its optimal shape
It’s no secret that a well-presented home sells better and faster. This is even more important in a buyer’s market.
In a competitive market, buyers pay attention to small details like light fixtures and window furniture. On that note, prioritize and choose the details and repairs that will be the most profitable to sell.
Also, be sure to clean up the property and depersonalize it to allow buyers to visualize themselves in their homes. If there is room in your budget, you can also choose to stage your property.
- Lower the price rather than pay for repairs
In a buyer’s market, buyers have a choice of housing litter. This means they can be very pushy when they demand things before they say “yes” to the deal, such as repair work.
While it’s easy to make further concessions just to seal a deal, we recommend a more strategic approach to repairs.
First, hire an inspector yourself to identify the issues you need to fix before signing up. If your property doesn’t need any notable repairs, this extra step will theoretically allow your home to pass the appraisal and inspection process smoothly once you have a genuinely interested buyer.
But if the inspection reveals problems you don’t want to fix or can’t afford to fix, what do you do? Rather than arranging repairs yourself, you can compromise by reducing the selling price to cover the costs.
This way, you can reach settlement day faster and even avoid the stress of dealing with traders and contractors.
- Be flexible with your payment terms
Selling on these terms also means you need to be more flexible. Since sellers have less bargaining power in a buyer’s market, you should consider offering to pay some of the closing costs and any requested repairs in order to seal the deal.
Being willing to change the date or price of your move, leave appliances behind, or make other concessions can help expedite the settlement date. In order to maximize the number of buyers viewing your property, you also need to be flexible about viewing times.
Your marketing will matter even more than it would in a buyer’s market. But at the same time, you have to be smart and cut your expenses.
So how do you kill two birds with one stone? If you want to save more money without compromising your reach to potential buyers, focus on online marketing rather than print marketing.
Advertising on online property portals and social media can not only attract serious buyers exploring the digital world for great property purchases, but it is also very profitable.
Selling your home in a buyer’s market can be frustrating and stressful, as potential buyers may come and go, and even those who are interested may be picky about your property. It can make you feel helpless and borderline despair at times.
With this, it’s important to remember that the sales process is not an emotional affair and try not to take things personally.
You must have a lot of patience when selling under these circumstances. In some cases, you must also accept that the market determines the terms of sale of your property.
Disclaimer: This is a general guide only and is not intended to replace financial advice.
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