Most of us, have lived through, a variety of real estate markets, from a buyers, to a sellers market, to, what many consider, a normal, balanced market. Sometimes, this occurs, over an extended period of time, and often, we witness, changes occur, without much notice. For example, in the last year, or two, we have gone through, a strong, sellers market, where there were more qualified, potential buyers, than, homes, for sale, on the market. After, over a year, of ever – escalating, home prices, combined with little available inventory, we, then, observed, a little cooling, and more of a balanced situation. Many factors are involved, including: perceptions (buyer and seller); local area; overall economy, local economy; interest rates and availability of mortgage monies, etc. With that in mind, this article will attempt to briefly, consider, examine, review, and discuss, some recommended, marketing strategies, for a variety of circumstances and conditions.
1. Sellers Market: When inventory of houses, for sale, is extremely limited, and conditions, are such, where many qualified buyers, are seeking a home, there are two possible strategies, which might be most effective. One, which, we see, most often, is pricing the house’s price, in the highest range, believing that the number of buyers, will bring, a higher price. Another possibility, especially for a homeowner, who wishes to market/ sell his home, in the shortest, possible, period, is to price, the house, on the lower end of the real estate market. When this strategy is used, it often, brings, far more views, and action, and we often witness a bidding war. I did this with a client of mine, during this past, recent market, and received 22 over – asking price, offers, in the first weekend, and the house sold, for more than fifteen percent, over the listing price. Sellers should interview potential agents, and discuss, marketing strategies, and which might work, best, for a specific property!
2. Buyers Market: When there is more inventory, than qualified buyers, we often, witness a buyers market. Obviously, in these circumstances, the best approach, is to conservatively, use, a Competitive Market Analysis, in determining the listing price. Remember, in the vast number of instances, the best offers come, in the first few weeks, after it’s been listed, so, those who price the house, too aggressively, often suffer. Price the house, right, from the start!
3. Balanced Market: When neither side, experiences, a significant advantage, over another, we see, a balanced market. In these instances, smart pricing, and accentuating a property’s strengths, against the competition, in the local area, is a necessity, for success!
A wise homeowner, interviews potential agents, and hires, the one, who has the vision, and understanding, to use a strategy, which works, best, for the particular property. Since, for most, their house represents their single – biggest, financial asset, doesn’t that make sense?