How to Buy or Sell a House Effectively
The law of supply and demand basically states that if you have a large inventory of an item, be it houses or hotdogs, the price is driven down as buyers are able to pick and choose, along with negotiating a better price. By the same token if inventory is low sellers can drive a harder bargain and, as long as the buyer has a need or desire for this item regardless if it is a property or a piñata, they are willing to up the ante.
Homes for sale are typically scooped up much more quickly during a seller’s market. The property owners are in the more powerful position and can start the bidding higher than in a buyer's market. Although you may believe that your home will sell quickly and for your asking price, you should gain as much selling exposure as possible. List your home FSBO for free on as many websites as possible. Use a Flat Fee MLS Listing to gain the MLS Listing exposure for all Realtors to see in your area.
Buy a House in a Seller’s Market
When you go shopping for the house of your dreams and the harsh reality of a seller’s market stops you in your tracks, you can have the upper hand over other buyers even though the seller is in the driver's seat. These tips can help put you in a better position with the owner of the property that is most appealing to you.
- Go in early. If you are able to view a home during the week you will more than likely be ahead of the crowd and not be caught in the stampede of weekend home shoppers.
- Write a good offer. Even in a buyers' market or a normal market it is insulting to the homeowner when an offer is written for far below the asking price, as well as with a number of concessions. Write a fair and clear-cut offer that does not alienate you.
- Be on your best behavior. This might seem strange but homeowners are generally emotional about leaving the house where their children grew up and many family memories took place. Keep the criticisms to yourself and play up the compliments – just do not lay it on too thick!
Sell a House in a Buyer’s Market
Alabama and Florida real estate that sells faster in an inventory-saturated market rely on several disciplines and tactics. They include:
- Pricing. If you price yourself out of the market so that there is room to negotiate, you will more than likely do yourself a disfavor. You need to know what the comparative sales in your area are and basically go with the flow. Also consider how your listing price will appear on the various websites. Rather than listing at $250,750 consider listing at $249,999 so that a buyer looking for a house in the $200,000 to $250,000 range will pull up your listing in a computer search.
- Inspection. It is standard protocol for the buyer to conduct an inspection prior to closing, however, the seller that conducts a home inspection of their own stands a better chance of being prepared if the inspection reveals items that should be repaired prior to putting it on the market.
- Presentation. Just as bees are drawn to honey prospective homeowners are drawn to a clean and presentable property. Make sure your home is in good shape with curb appeal and a clean and uncluttered interior.
- Professional and friendly. For a few the prospect of buying a home is an unemotional purchase but for most there is a great deal of emotion attached to the whole process. As you show your home be courteous and congenial. Answer questions to the best of your ability. If the information is not at your fingertips at the time, get back to the potential customer with answers. Follow up can mean the difference between a sale or waiting for another prospect.
Selling your home in a buyer’s market certainly has its difficulties. In this type of market, you must have a Flat Fee MLS Listing so that all realtors in your area have access to your listing. You must double your efforts in the advertising marketplace with flyers, signs, list your home for free on public websites, newspapers and with social media.
In summary: Remember that you cannot change a market. But in either market there is always buyer for your home!
