Considering buying or selling a home, but wondering how the current buyer’s market affects that decision?
We all hear the term “buyer’s market” bandied about on news programs and in the media, but what does it really mean? Typically, a buyer’s market refers to a 7-8+ month supply of available homes. Making the assumption that homes continue to sell at the current rate and assuming that no new homes come on the market, it would then take 7-8 months for ALL of the homes on the market to sell. Historically, this large of an inventory has shown that the supply of homes outweighs the demand for homes.
So, what do you need to know to take advantage of this market regardless of whether you need to buy or sell?
Most importantly, everyone must realize that even though there may be a lot of homes on the market, the percentage of well-maintained, move-in ready homes is low. I recently toured 15 properties with a client. Of those, only one was occupied and/or had furniture in it. Buyers, if you want to buy one of these homes, you need to be prepared to make an offer. Don’t wait or someone else will buy it. Want to buy one of the vacant properties? Be prepared to find a laundry list of maintenance items that need to addressed on the inspection report. After all, if the homeowner couldn’t afford their mortgage, they probably weren’t servicing their HVAC on a regular basis. Sellers, make your home move-in ready for the next buyer. Do an inspection prior to putting it on the market and fix the items on the report. Declutter and stage your home so that it looks large and welcoming. These efforts will be well worth your time and money.
If you’d like more tips on taking advantage of this market, don’t hesitate to give me a call. I’m here to help you with your home buying, selling or investment needs.