Is it a Seller's Market Yet?

Inventory is currently the lowest I have seen in years.  Does this point to the signs of the shift into the Seller's Market?  I believe so.  We are seeing more and more multiple offers on our listings.  We are also noticing more competition when representing buyers.  We go look at a few homes and then suddenly that favorite home is already option pending.  So what should you do if you are thinking of buying or selling in this market? 

For Buyers: 
1. Make sure you are pre-qualified with a reputable lender.  Ask them to review your information thoroughly, instead of them just going over your info.  Make sure that they actually review your tax returns and last 3 months bank statements.  I am finding more and more lenders skipping this step in the early stages and then after the buyer has spent $1-2k in Earnest Money and other fees they are left with a loan denied in the end.  And most likely homeless because their plans to move in fell through. 

2. Be ready to make that offer!  As soon as you see a great property on the market be ready to make a move that day.  You never know if someone else viewed that dream home of yours the day before and then you are too late!  Don't lose the home of your dreams dragging your feet.  If you like than you like it! Its simple!

3. Be prepared to never "low-ball" the sellers asking price.  If you are competing with other buyers they will simply think you are not a serious buyer.  If there is no competition you can also risk offending the seller and they will be less willing to negotiate with you.  After checking the market with your Realtor be ready to make a fair reasonable offer.  Do you really want to lose your dream home over a few thousand dollars or so?

For Sellers:
1. Prepare your home for Sale means that you must attend to all repairs, paint touch-ups, and deep clean your home.  If you know if anything broken in the home go ahead and get it fixed.  Most likely the buyers will find out during their inspection and negotiate for the repair anyway.  The less red flags your home shows the higher the chances you will get top dollar for your home.  Don't skimp on cleaning your home.  Hire a good cleaning service and have it cleaned from top to bottom including all baseboards, fans, blinds, in/out appliances etc.

2. Prepare your family for showings.  When you have your home on the market you will need to be prepared for last minute showings.  Get in the habit of keeping laundry baskets in the corners of each bedroom.  If there is a last minute showing request - throw everything in the basket and place in the closet out of the way.  Remember a show ready home actually looks like a model home.  Clean, de-cluttered, light and bright, free of cooking smells are some of the goals you should consider.  I always advise my sellers to prepare your home as if you are about to have a party.  Turn on all of the lights, as well as music, leave some mini-bottles of waters out especially in the hot summers the buyers will be thankful and think twice about that welcoming home.

3. Prepare to negotiate a little.  The buyers will always want to negotiate a bit with you on your asking price or at least for some closing costs concessions.  Be sure to consider all aspects of their offer including type of loan, days to close, and how strong their down payment or overall offer is.  It is getting harder for buyers to obtain loans in a timely manner, so have a contingency plan if they cannot close on time.

If you are thinking of buyer or selling a home please contact me at your earliest convenience!  I would love to assist you in your Real Estate goals.  - Jessica 713-882-1188