When entering the real estate world as a buyer or seller, it is always helpful to have more information. Information about the local market can help you decide whether it is the right time to buy or sell. A common term in the real estate business is “buyer’s market” or a “seller’s market.” Both terms revolve around the idea of supply and demand.
Buyer’s Market
In a buyer’s market, there is more supply (more houses) than there are buyers. This allows buyers to be more selective about the home they purchase. This also gives buyers the ability to negotiate better housing prices. This puts more pressure on sellers to list their houses for lower prices. There are a few ways to tell when current trends are favoring buyers. These houses typically are priced lower and can sometimes be listed for longer periods of time. Sometimes buyers hold out in these markets to secure lower prices on homes.
Seller’s Market
A seller’s market is when there is not enough supply to meet the demands of the consumer. There are not enough houses compared to buyers. This gives sellers an advantage when deciding what price to list a house at. This can also affect how quickly an offer on a house is accepted. Usually, sales times are shorter in a seller’s market because they can pick from more than one offer to get the best deal. Sometimes these sellers wait until a certain number of days to review all the offers on a piece of property because there are multiple offers in hopes they beat out the others and win the house!
Latah County
Those looking to buy or sell in Latah County might be wondering what the current trends in this area are. Generally, and especially due to the COVID-19 pandemic, Latah County and the U.S. are in a seller’s market. There are a lot of people wanting to buy property, and not enough houses available to purchase. Inventory is low, and during times of disaster, homeowners feel more secure holding onto the property they currently own. Following COVID lockdowns, many buyers are wanting to move out of the city and into the suburbs.
Many buyers might wonder how to navigate a seller’s market, here are a few ways to have success as a buyer in 2021:
Get Pre-Approved
If you are not paying cash for a house, you will need to get pre-approved for a loan to cover the cost. When applying for a mortgage, a lender might review your credit history and credit score, debt-to-income ratio, employment history, income, and any assets you might own. Showing a seller that you are pre-approved can help your chances of buying a home.
Have a Clear and Concise Offer
It is possible that there will be a bidding war when more than one buyer submits an offer. A seller could accept an offer that is higher, or a cash offer, or a simple offer not contingent on any other sales. Having a clear, simple offer is easier for the seller, so they may be more likely to accept these offers.
Avoid Counters
Avoid submitting a counter offer. A counter offer happens when the seller rejects the original offer, and instead of terminating the offer, a buyer counters and changes some terms of the agreement in hopes that it will be accepted.
Essentially, buyers want to show seller they are serious and ready to close on an offer.
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