What is a Sellers Real Estate Market?

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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?

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What is a Sellers Real Estate Market?

  1. 1. What  is  a  Sellers  Real  Estate  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  months  supply  of  homes  here in  Coral  Springs.  This  is  referred  to  as  the  Absorption  rate;;  when  homes  are  listed  for  sale  (active), how  long  will  these  homes  take  to  sell  based  upon  prior  closed  sales.  What  does  it  take  for  them  to get  absorbed,  so  to  speak.
  2. 2. 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;; 1. How  much  of  an  escrow  deposit  you  want. 2. How  strong  of  a  Pre  Approval  do  you  require  from  Buyers  on  a  financed  offer. 3. How  long  will  you  wait  to  allow  a  financed  offer  to  present  a  loan  commitment. 4. How  long  will  you  allow  for  the  inspections  to  be  completed. 5. How  much  would  you  be  willing  to  repair  from  noted  repairs  apparent  from  Buyer's  home inspection  report. 6. 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. 7. How  long  of  a  closing  date  will  you  allow. 8. 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
  3. 3. 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

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