A closer look at a Seller’s Market
What is a Sellers Real Estate market and what does it mean to you when you’re selling a home or buying a home. How can you tell if you’re in a Sellers Real Estate Market? It’s important to understand the type of market that we’re in whether you’re a Seller or a Buyer of a home. “How can it affect me in my Real Estate transaction?” – a common question that my customers ask me.
You’ll find most cities across South Florida to be experiencing a Seller’s Market. Here in Coral Springs Florida, we are in a Seller’s Market. Typically, a Seller’s Market shows available homes for sale to be less than a 6 months supply which is determined by prior month’s home sales relative to homes currently for sale. As I most recently reported, there was roughly a 2 month’s supply of homes here in Coral Springs; when homes are listed for sale (active), how long will these homes take to sell based upon prior closed sales.
Okay, so we’re in a Sellers Real Estate Market; “Why do I need to know, Why should I care and What do I need to know about it?” Here is what I tell my customers:
When you’re selling your home, a Seller’s Market is always welcome news. What can you expect?
- Buyers, many Buyers – You’ll have Buyers just starting their home search, Buyers who have been looking and have likely lost out to home ownership because of another Buyer beating them out in one way or another; either because “the other Buyer” viewed the home quicker or made their offer more appealing to the Seller.
- A quick sale should always be the norm in a Seller’s Market if you have hired a trusted Real Estate Agent professional who has recommended the right price to sell your home. Pricing matters whatever the type of market that we’re in; Seller’s Market, Stable Market or Buyer’s Market.
As a Seller, in a Seller’s Market, does this mean that you leave being reasonable, on the table? Of course not, as reason will always be involved. It simply means that you’ll likely have better choices from Buyer’s offers. You can place more specific requirements on how you want the Buyer’s offer to read such as;
- How much of an escrow deposit you want.
- How strong of a Pre Approval do you require from Buyers on a financed offer.
- How long will you wait to allow a financed offer to present a loan commitment.
- How long will you allow for the inspections to be completed.
- How much would you be willing to repair from noted repairs apparent from Buyer’s home inspection report.
- How much of a contribution would you be willing to make towards the Buyer’s closing costs, when the Buyer asks for help towards their closing costs.
- How long of a closing date will you allow.
- And others.
Buyers routinely can be known for putting up a minimal escrow deposit of $1000. As a Seller, you can request at least 1% or more in the way of an escrow deposit and even request a 2nd deposit.
Buyers have been known to present very flimsy Pre qualifications of their ability to gain financing. You can request more (read my post on that further detailed)
Buyers typically can have 30 days on many standard Real Estate contracts to obtain their loan commitment. You can request that this time period be shortened to say 15-20 days so you don’t have to wait so long to find out that yes, indeed, they’ll get a Lender to loan them money to buy your home.
Buyers typically can have 15 days to complete their home inspections. You can request that their inspections are completed with 5-7 days. Again, keeping you from the never ending waiting game of Real Estate contract contingencies.
Buyers can come back to Sellers to request needed repairs be completed that came up on their inspection report. You can perhaps be willing to assist in not making all repairs but a percentage of the repairs.
Buyers sometimes will request that a Seller contribute a percentage of the purchase price to assist the Buyer with covering their closing costs; up to 6% is the typical maximum. As a Seller, you can perhaps agree to a smaller percentage of say 1%-3% or request that they tack it on to the purchase price.
Buyers can ask for a typical 30 day closing date or maybe want quite a bit longer to be able to close. You can request that they stick to the 30 day closing date or perhaps you want more time to allow for getting ready to move and can request, say 45 days.
These are all examples of what can be negotiated and by no means am I suggesting that you stick it to a Buyer just because you can. As I stated at the onset of this post, I would always recommend that you be reasonable. However, maybe a few of these items would be more beneficial to you than others so you can pick and choose and it’s always nice to know that there’s a time when the ball is in your court when selling your home here in Coral Springs and South Florida.
When you’re buying your home, a Seller’s Market represents a totally different market place for you. By having just read the above, you now know what to expect. You need to get to the home first, sharpen your pencil and present your very best offer.
If you want to sell a home or buy a home here in Coral Springs or anywhere in South Florida, give me a call and we can discuss how I’ll work for you to get your home sold or to buy your home in this Seller’s Market. Call me at 954-464-1100
This article was written by by Lynn Pineda, your Coral Springs Realtor and South Florida REALTOR® with Keller Williams Partners Realty.