We have been living in the high flying arena of a hot home property market for the last 3 years. Is it slowing down? What does it mean for buyers and sellers if it is? Do buyers and sellers need to modify their strategy?
There are far more homes which are expiring or being withdrawn from the market without selling at the asking price. The market is still powerful, but there are abundant signs that it is moderating. There were bits in the public media to point out that something similar perhaps occurring in other bits of the country. I think it possibly is and would welcome anecdotal and observational input from you if you are in a position to see changes in your neighborhood. You must be more patient if you’re a seller. When the market slows, there’s less “instant gratification” for sellers.
You want to hone up your selling and negotiating talents if you are a FSBO (for sale by owner). You must shop for a Realtor with promoting and negotiating talents if you opt to use the services of a broker. Sellers in a cooler market need to notice that the sale of their home has become more delicate to the price issue. The market truly does “speak.” If you’ve got a good selling program in place and aren’t getting several showings per week, your price is too high. You can lower it in $5,000 increments until “traffic” picks up and you are getting many showings each week. Sellers need to resign themselves to the undeniable fact that, in cooling markets, they aren’t certain to get multiple offers. When an honest offer comes in, give it respect and real consideration. It might not be “the only game in town,” but contract offers are not “a dime a dozen” either. It’s still a brilliant idea to buy for a home with a fairly powerful “lender letter” in hand, however in a cooling market, buyers do not have to make a fast offer on the 1st home which is satisfactory for their family’s wants. They can take a touch more time, and compare homes before making an offer. The home they finally decide to make an offer on will often still be available 20 4 or 48 hours after the 1st viewing. Buyers whose contract offer includes a provision for a home inspection aren’t as inclined to be displaced by an offer with no such provision as does occur when the market is sizzling hot. Another change is that buyers who offer less than full price aren’t so willing to be giggled out of the city.
They’re much more likely to get a counter offer naming a price somewhere between the asking price and the offer originally made, or they may receive a counter offer at full price but with another concession offered. A cooler market can be healthy for both sellers and buyers. Some of the delirious pace slows, but there’s a still lot of activity. With any success, that is the kind of market we are entering now. Perhaps the “Fed” will even be ready to “pause” its rate of interest increases.