(CHEROKEE LAKE REALTY WRITES A WEEKLY COLUMN FOR THE GRAINGER COUNTY JOURNAL NEWSPAPER. THIS WAS A RECENT QUESTION ASKED BY A READER.)
In last week’s column, I explained the difference between these markets. Because space was limited, I promised to offer advice this week for buyers and sellers navigating today’s conditions. And yes, the current market generally favors buyers—what is commonly called a “buyer’s market.”
To sum up the difference between a “buyer’s market” and a “sellers’ market,” a “buyer’s market” is when there are more properties for sale and they exceed buyers’ demand. A “seller’s market” is just the opposite. Buyers outnumber available homes for sale.
So, here’s my advice to sellers during a “buyer’s market.” It consists of three parts. If your home is not selling, and everything possible has been done by your real estate agent to draw attention to it, then you can 1. Ride the wave. See if a buyer eventually comes along. 2. Stir things up by reducing the sales price. Or, number 3, take your home off the market.
Option number one will need to have a bit of luck. Someone new has popped into the market that was not around previously, and they are looking for a home now. This can happen, as our area is attracting folks from all over the country. And, at this precise moment there could be someone in California, for example, that has just received an offer on their home, and they are now looking to buy.
Option two. If your home is not getting the desired interest, then your price may not be in line with what potential buyers believe your home is worth. Painful I know, but if you need to sell now, and you don’t want to rely on luck, then drop the price. You might bring in a new wave of potential buyers that could not afford your original advertised price, and a lower price may make it affordable for them now. Again, this will stir things up and perhaps bring in more showings.
Option three. Take your home off the market and see if the market changes down the road. But this depends on whether you need to sell or not. Taking it off the market will not let the public know that it is for sale. You don’t give the other two options a chance. And there is no guarantee that the market will change any time soon. We don’t have a crystal ball to predict the future.
My advice to buyers? This is your time. Seize the moment if you are looking to buy a home or a piece of land. We are in a “buyer’s market,” the name says it all. There are plenty of homes available for sale. Sellers realize this and are more willing to negotiate on contingencies and their sales price. But don’t blow it. If you find a home that you like, keep in mind that all sellers have a bottom line. So, making a truly low-ball offer can, and will, create discord. For a real estate transaction to be successful all parties need to win. You need a home. They want to sell a home. If you like the home, then you will probably be getting a very fair price during a “buyer’s market.” Another buyer may just come along and make an offer while you are negotiating. Real estate is funny like that. I’ve seen a home sitting on the market for a few months without a single offer. And then, in the span of one week two offers from two different buyers be submitted. It’s also a good idea to make friends with the sellers. The home will be new to you. The seller knows little things about the home that could help you after the sale. You may need their guidance. Make this a win-win for you and the sellers. You get the home you want, at a fair price, and the sellers are also satisfied with the transaction.
