Selling a home is often a strategic move. As such, you might feel that it is worth it to wait for a favorable sale.
One of the key factors in this is the presence of a seller’s market. Learning to identify this type of condition could help you make the most of your strategic move.
Looking at your property
A seller’s market is generally characterized by demand that outweighs supply. This means that you must know exactly what it is that you are selling.
This is especially important in real estate, in which the property you have for sale is not as much of a commodity as it is a unique parcel. Identifying what makes your housing unit unique should help you determine how large of a supply of comparable property is on the market.
Telltale signs of a seller’s advantage
Once you figure out what defines your home, you should be able to compare it to similar properties. If those properties are subject to the following, you might be in a seller’s market:
- Short times on the market
- High prices versus surrounding areas or price increases period-over-period
- Homes selling above asking, which implies a bidding war
If any one of these factors is present, you might have an advantage. This is even more likely if any of them combines with low supply levels.
Unfortunately, the atmosphere of seller’s markets tends to lead to extraordinarily costly mistakes. Issues range from the improper review and revision of contracts to unscrupulous practices by and the indecision of buyers.
These are very large transactions. Regardless of the feeling of urgency that comes from participating in a frenzied market, cooler heads tend to prevail.