What to Expect When Selling a Home in a Buyer's Market
Buyers may be at an advantage with more available properties in the market. This may force concessions from sellers in a buyer's market. However, sellers can still successfully sell a home in a buyer's market. Understanding how to navigate a buyer's market and what potential buyers may want will help sellers market and sell their home.
Understanding a Buyer's Market
There is often a surplus of housing in a buyer's market, a benefit to buyers as they have more properties from which to compare and choose from but potentially making it more difficult for seller's to sell quickly or attract multiple offers on a home. Sellers should be aware that certain behaviors may be more likely to occur in a buyer's market, such as that of including specific contingencies in a contract or inquiring about a price reduction.
What does this mean for sellers? Sellers need to stage and properly market their home, making repairs and upgrades in order to compete in such a market. That being said, it is still possible for well-appointed homes to linger on the market when similar properties are available, making it necessary for an affected seller to reduce their asking price in order to attract additional interest. Sellers may need to exert more patience when dealing with buyers who may want to get the best deal possible.
Learn About Contingency Clauses
Sellers should be aware that contingency clauses may be used in a real estate contract when selling a home. These clauses are actions that must be done within specific timeframes and serve to protect buyers and sellers. Such clauses are often included in contracts in a buyer's market and may not be seen as frequently in a seller's market. Performing a home inspection in a specified amount of timeframe is one of the types of actions that may be considered to be a contingency clause. In Canada, a sale and settlement contingency is often included in real estate contracts.
Successfully Sell in a Buyer's Market
There are ways to appear more attractive to buyers without reducing asking price. Sellers may choose to pay closing costs, allowing for potential homebuyers to have more initial cash on hand for other incidentals. In addition to this, sellers who get to know the local market and the type of buyers they hope to work with may want to make offers such as including major appliances, a nice consideration for first-time home buyers.
Working with a buyer's timeframe can help attract and motivate the right buyers to make an offer and go to closing on a home, such as closing before the beginning of the school year for buyers with schoolchildren. Sellers may want to take initial steps to get professional photographs of their home and have it staged in order to better market a Copperfield home on listing sites, helping improve traffic on a listing site and making for a better attended open house. These approaches can potentially increase offers and help sellers build good working relationships with ideal buyers in a buyer's market.
Pick the Right Agent and Plan Ahead
Choose a reliable and communicative local agent in order to better understand how to come out on top in a buyer's market. Be prepared for challenges and setbacks in the home-selling process—especially when complications arise—by planning ahead and being flexible with any selling expectations.