Selling In A Buyers’ Market
By JD Esajian on December 13, 2013
There are times in the real estate industry where you are in a position of strength and others when you are forced to take what the market gives you. If you know who has the upper hand and how to deal with it, you can make the best of any situation. Over the past five years we have seen extreme buyers’ markets with short sale and foreclosures followed by a brief period where sellers had the advantage. If you are selling in a buyers’ market, you have to know what to expect and how to make the best of it.
If you see your property not getting much interest, you don’t need to panic. Just because there are limited buyers doesn’t mean you have to give the property away. Evaluate if your listing is overpriced to begin with or if there are issues with the marketing or presentation of your property. If you are listing in a buyers’ market, you should extend your selling expectations if you want to get your price. Exercise patience and you will find the right buyer.
Realtors will be very savvy in trying to get the best possible deal for their buyers. They will ask for the sun and the moon and even try to get the stars thrown in as well. Don’t take this as a personal offense. They know they have the upper hand and are trying to get everything they can out of the deal. If they are looking for outrageous credits or demands, you don’t have to accept them, but be prepared to give in to smaller concessions. In most cases, the buyers just wants to feel like they are getting something.
With limited buyers in your area, you need to make sure your home separates itself from everyone else on the market. Every showing and open house should be treated with care and you should make sure everything is perfect. If your house does not leave a good initial impression, buyers can simply look elsewhere. Pay close attention to the little things. If you are doing any work, make sure it is only the highest quality. There may not be much that separates your property from another listing. The deciding factor may not be price, but the quality of work and how close the property is to being move in ready.
With limited quantity, how you price the listing is critical. You need to find the happy medium for what you would be satisfied with and what the market will find attractive. What you could have gotten three years ago, last year or even last month is no longer relevant in today’s market. The sooner you can accept that and accept the fact that there will be low ball offers, the better you will be. In some cases, you may want to think about pricing below the market to attract buyers and create demand. Before you even list, you need to know that you are listing in a soft market and should keep your expectations in check.
Selling in a buyers’ market does not mean you are giving the property away. It means that you will have to make some concessions and constantly show the property in its best possible light. With the right mindset and strategy, you can still accomplish your goals.