The decision to sell a home is more complex than many people first realize. One of the primary issues to consider is your market and how it will impact the sale of the property.
Seller’s and Buyer’s Market
People sell their homes for a variety of reasons. In some cases, the sale is involuntary due to issues that arise in everyday life such as job-related transfer, divorce, and financial problems. For a vast majority of people, however, the decision to sell is made under less trying circumstances. If you fall into this category, determining the nature of the real estate market in your area is a critical step to take.
When determining a market for real estate in a particular area, the central issue is what kind of a market is present? There are two types – the seller’s market and the buyer’s market. Each market has particular characteristics and will impact how much time and money will be involved in your selling effort.
A seller’s market is one where there are more buyers than properties being listed. It is no secret that the United States has been in one of the hottest seller’s markets ever seen for the last seven years, but it is starting to cool off. This doesn’t mean, however, that the national trend reflects the situation in your particular area. You can list your home with a high price for your area and still reasonably expect to get offers.
A buyer’s market is one where there are more listings than buyers. In such a situation, homes tend to sit on the market for substantial amounts of time. Many parts of the country, such as Texas and Colorado in general, have historically been buyer’s markets. For some reason, these two states never really benefit from the massive seller’s market push for the last few years.
If you are in a buyer’s market, you need to determine two things. First, do you have sufficient equity in your home to make selling it at a competitive price a worthwhile decision? Second, would it perhaps be better to wait a few years until the market falls in your favor?
Unless there is a compelling reason to sell, many homeowners will wait out buyer’s markets. If there is a compelling reason, you need to price your home near the bottom of the market for comparable homes in your area to get a quick sale. If it is any comfort, you should be able to turn around and find a good deal in your area as a buyer.
At times, the real estate process can be a confusing one for buyers and sellers. If you take the steps to determine your market before making a specific decision, you will be better off.