What is a Seller’s Market?
“It’s the perfect time to sell your house – it’s a seller’s market!”
If you’ve had your eye on the real estate game at all in the last few years, then you’ve probably heard at least one person or advertisement say something to this effect. But do you know if it was an accurate statement, or what a seller’s market even is?
Don’t let the industry jargon throw you for a loop! Your local real estate experts on the Michelle Clark Team can help you not only understand what a seller’s market actually refers to, but also how you can use that information to your advantage when the time is right for you to make a sale. Whether that results in a move to coastal North Carolina, or on toward the next big chapter for you and your family, consider us your reliable resource for all of your relocation questions and needs.
What it means
A seller’s market comes into the picture when the demand for housing exceeds the supply. The exact opposite case is what you’d call a buyer’s market, or when there are so many homes for sale that buyers have their run of the selection and can often negotiate for a lower price or extra incentives before they agree to close on a house. So, in the seller’s market, your house is in a pool of very few options in your area, and when there are more buyers coming in with hopes of making an offer on one of those houses.
Take this as an example; if you’ve lived in our region for a while, then you’re probably familiar with the way the vacation rental business booms at certain times of year, but stalls in others. Within this cycle, there are prime times to lock down your rental for a summer getaway because there are still more houses or hotels to choose from, but it won’t last long before all of the other vacationers realize there’s only so much time left to book the trip at all.
So, as a renter, you try to work within those timeframes to meet the sweet spot where there are plenty of options, but the rates haven’t skyrocketed. If you were the person or agency renting the beach house out to others, then you’d want to take advantage of when the late-comers are scrambling for a nice place to stay, but many of the others in your area have already been booked for that particular period. That way, you have a bit more freedom when it comes to rental terms and even to whom you end up lending out the space.
How it applies to you
Obviously, you’d much rather be the seller in this kind of housing market. Just like our example with the vacation rentals, homeowners in a seller’s market have the distinct advantage of literally being the prime real estate in a given region.
If you’re the seller in this kind of scenario, then you’re more likely to see a deal sway in your favor – it’s why everyone keeps telling you that now is the perfect time to put your house on the market! By being the owner of a hot commodity in a limited market, you’re in a greater position to make a profit on the sale of your house, rather than settling for breaking even. And when you have interested buyers contacting you and your real estate agent to begin discussing terms and requirements for a sale, you might find yourself at leisure to weigh the pros and cons, and then make the decision of whether or not to proceed with the next steps of selling your home.
All in all, it means that the process doesn’t have to be rushed unless you’re on a strict schedule for any reason, and you and your real estate agent can work together to make sure you’re getting the fairest deal possible for the home you’ve put so much time and energy into while you lived there.
If you’re ready to test the waters and find out more about selling your current home, contact the Michelle Clark Team! Our agents are here to help you every step of the way, no matter the market.