Experts Reveal 4 Signs of a Seller’s Market and How You Can Benefit
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Laura Beck
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Amber Barkley
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Maybe this is obvious, but the best time to sell a home is when it’s a seller’s market. If you’re thinking about selling your home, that usually means you’ll have more leverage than the buyer does. Buyers are going to be competing aggressively with each other, and that gives you the upper hand. You’ll get better offers, and you’ll have more control over the sale. You’ll probably earn more money, too.
So it helps to know when the market is on your side. Should you list your home now, or wait? GOBankingRates spoke to some experts, who explained a few ways to tell.
Also, check out some key strategies for selling your home in a seller’s market.
Low Inventory
A clear sign of a seller’s market is that fewer homes are available for sale. When there aren’t a lot of properties on the market, there’s going to be high demand for the homes that are being sold. If you’re selling, you’ll have more leverage in negotiations. If the market is competitive enough, you’ll get multiple offers, and buyers are probably going to make them above your asking price.
“This is where sellers have the upper hand,” said Warner Quiroga, owner of I Buy LI. “When demand exceeds supply, you can list your home at a premium price and have multiple buyers competing for it.”
Buyers are probably going to agree to your closing costs and other terms in order to close the deal, rather than have you sell to someone else.
“When there’s barely anything available, buyers are scrambling. Sellers can sit back and watch the offers roll in,” added Greg Clement, founder and CEO of Realeflow.
Homes Disappear Fast
Low inventory also means that homes don’t sit on the market for long. As soon as a home is listed, interested buyers will have to move fast. They know that waiting too long could mean losing out on the house they want.
“When houses are flying off the market within days, it’s a strong signal that buyers are ready to act fast, often without negotiating too much on price,” said Jonathan Orcutt, owner of Driven Cash Home Buyers.
As a seller, this is great for you. When homes disappear from the market this fast, it means there’s high demand. You’ll be able to move buyers through the process without delays. You’ll also have less stress from staging, extended showings and waiting for offers.
Bidding Wars and Sales Over Asking Price
When there’s multiple buyers interested in the same property, things can get competitive. They might try to outdo each other by raising their offers. This could drive the final sale price over the original asking price. This is great for you.
“When buyers are outbidding each other, expect offers well above asking,” said Clement. “Desperate buyers mean sellers can set the terms. … This is your moment to clean up. You can sell faster, for more money and with fewer strings attached. Buyers know they have limited options, so they’ll give you what you want.”
If you’re selling in a seller’s market, you might have your pick of offers. You can sit back and let the buyers duke it out, or negotiate with them and try to get them to agree to even better terms.
Price Increases Over Time
The limited supply and increased demand in a seller’s market can make buyers offer more as they rush to get a home before it climbs entirely out of their price range.
“If you’re noticing that prices have been creeping up consistently, it’s a good time to list your property,” said Tom Troccoli, owner of Regency Executive Offices. “Timing is everything, and in a seller’s market, you can push for top dollar and often get it.”
If you’re ready to sell, you’ll get higher offers than you would in a buyer’s market. It pays to strike while the iron is hot.
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