What does it mean for you?
As you’ve been searching for a home, talking to industry professionals, and reading information online, I’m sure you’ve come across this phrase and thought to yourself, “What does this all mean?”. Well, we’d like to shed some light on this and explain what the terms mean, and what it means for potential home buyers and home sellers.
Buyer’s Market: Supply is greater than demand. There are more people looking to buy homes than there are people looking to sell homes.
Seller’s Market: Demand is greater than supply. There are more people looking to sell homes than there are people looking to buy homes.
Although every micro market is different, we have generally seen a seller’s market across Southeast Idaho for the past several years. What does that mean for you?
Buyers: The market (especially at the entry-level price points) is extremely competitive. Chances are, any particular property might have several offers presented to the sellers and they will in turn choose the offer that fits best with their particular needs and what they’re looking to accomplish. It is not uncommon for buyers to offer well over asking price in effort to make their offer stand out from the other offers that may have been submitted. This also tends to mean that sellers don’t necessarily have to accommodate to buyer’s requests to fix items that may come up during inspection. This is why it is strongly encouraged for buyers to select an agent who’s proactive in finding suitable options and well versed in negotiation, which can aid them in getting the best terms post-inspection.
Sellers: Sellers can expect to get a great price for their home. They will most likely have several offers on the property which allows them to pick and choose the offer that best aligns with their goals. They have more clout when it comes to negotiating items that may come up during inspection. All this being said, there are a number of things a seller must do in order to take advantage of the market’s pendulum swinging in their favor. Buyers expect to see the value in the home. If it isn’t staged properly, decluttered, and is in pristine showing condition, buyers may not see the value in the list price and the property may sit on the market for a longer period of time. A property that’s been on the market for a while in a seller’s market may been seen as a ‘red flag’ for potential buyers. This is where a great listing agent really shines and earns their commisssion. Staging the home, discussing a good pricing strategy, and properly marketing the home are all things that a good agent will discuss in detail with the sellers.
The Group Real Estate agents are experienced in helping both buyers and sellers and would love the opportunity to help you accomplish your goals. Our Client Care team is standing by 7 days/week to answer your questions. Please don’t hesitate to reach out and let us know how we can help YOU buy or sell your next home.