Is now the right time for you to buy or sell your California home? Many citizens take on this endeavor with goals in mind, but some are surprised by the market conditions and how challenging they can be. One of the first things to look at before starting your journey is whether you are working in a buyer’s or a seller’s market. In either case, it pays to team up with a local Realtor® for professional advice and comprehensive assistance throughout the process.
Jamie Lennon focuses on providing personalized attention in a small, comfortable setting to ensure that you love the process of buying or selling your Silicon Valley home. As your Top Rated® local Realtor, Jamie can answer questions and guide you every step of the way.
If you’re not sure what to look for in a seller’s market, follow our post for five clear signs, then be sure to get in touch with our real estate team to start your journey!
What is a Seller’s Market?
This condition is achieved when the number of properties are low and the prices are high, giving sellers more power to make profitable outcomes. Areas facing high demands for real estate are said to be in a seller’s market. This can have major implications depending on whether you want to sell your home or buy a new one (or both!).
Less Homes for Sale
Property value is all about supply and demand, and if there are not enough homes to meet the demand of the current market, then competition and price will increase. A market consisting of more buyers than sellers will result in more power for the seller, whether that includes the listing price, concessions, closing costs, and closing dates.
Fast Turnaround Times
How many days a home sits on the market can provide insight into the current market demands. A lot of homes for sale and a low demand will likely mean more days on the market, whereas a seller’s market will see properties closing fast. If you find numerous homes that have been on the Multiple Listing Services (MLS) for more than 100 days, it’s safe to assume that the market is slower. However, if a property you love accepts an offer before you can even schedule a showing, then you may be in a seller’s market!
Multiple Offers on Each Property
The number of offers placed on a property can also be a sign of the market status. You may be in competition with several buyers, giving the seller the power to collect multiple offers and choose from the most equitable one. A seller’s market will see buyers getting into bidding competitions in order to secure real estate, with numerous offers being input before finding success. It helps to have a professional real estate team to maximize your chances of success while providing clarity and guidance.
Property Prices are Increasing
The increase in demand and the boon in competition can mean one thing — prices are going to go up. Buyers often have to offer more to get the property they love, increasing the measuring point for nearby home values. Professional assessments will look at the neighborhood’s comparable prices and demands to help set an accurate (and higher) price. A seller’s market may see multiple offers of $50,000 over the asking price!
Sellers Hold the Cards
Whereas in a buyer’s market you can expect to make a few concessions to meet the seller in the middle or give the seller incentive to take your offer, a seller’s market is evident by the fact that the buyer does not hold the cards to negotiate. Sellers do not need to offer incentives to make their property more attractive, such as leaving valuable appliances or covering the closing costs.
Buy Your New Home With Our Realtor
Jamie Lennon is here to be Silicon Valley’s Top Rated® Local real estate professional, using her passion for people to build quality relationships and help clients find success in their property endeavors. Jamie leads a team of experienced agents and specialists to help you buy your ideal home.
Navigating the California real estate market can be intense, but Jamie Lennon is here to help every step of the way. Get in touch today to talk with a Realtor you can trust!