These are tough times, and many fear listing their house thinking they can’t make a profit or find a seller. Can you sell a house in a buyer’s market?
The housing market is cyclical, it doesn’t just stay like it is. Many factors influence these cycles, such as interest rate, consumer confidence, and economic conditions. All of this creates a shortage in either supply or demand, greatly influencing the look of the market.
Real estate market can be balanced, seller’s market or buyer’s market. A seller’s market occurs when the demand is bigger than housing supply. This means that sellers have the upper hand as the competition is small and many buyers might compete for one home. Buyer’s market, on the other hand, happens when the supply is much bigger than the demand, which means many houses risk being left unsold. A balanced market is the ideal one, when supply meets demand.
In the late 2020, statistics show that Milwaukee, WI, is a strictly buyer’s market. Many homes are listed, but very few of them have been sold. In fact, according to Realtor.com, most homes sold for 1.94% below listing price. This makes many people want to delay their home sales, waiting for some better days. Should you sell a house in a buyer’s market?
Why Is Buyer’s Market Benefiting Buyers?
Many people think you shouldn’t sell a house in a buyer’s market as it has many benefits for the buyers and a lot disadvantages for the sellers. As we’ve already mentioned, there are many more homes for sale than buyers in a buyer’s market. This gives buyer the ability to negotiate the sale, lowering the price. Another feature of a buyer’s market are low interest rates, as well as high number of distressed properties available, such as short sales or foreclosures. As many homes are competing for a small number of buyers, this is looking grim for those with properties that aren’t as appealing. This is making thing harder for those looking to sell in a buyer’s market.
Still, this task isn’t impossible, however you have to prepare yourself and to set your expectations right. When listing a house in a buyer’s market, you should know that homes typically spend more times on the market than usually. This can delay the sale, which results with more expenses in holding costs.
How to Sell a House in a Buyer’s Market – 5 Tips
Waiting for a market to change isn’t always an option. Preparing to sell a house in a buyer’s market is a tough task, but it is possible. Follow the tips below to reduce the stress as much as possible.
Hire an Experienced Professional
It’s much easier to navigate a buyer’s market if you have an experienced real estate agent to work with you. A great agent can give you helpful advices to sell your house fast. Keep in mind that agents have a commission fee that will be paid after a house is sold. Also, most agents don’t advertise a home, unless paid for extra services.
Make Necessary Repairs
A good idea would be to pay for an inspection, so you can make all the necessary repairs. If everything is in great working order, you are more likely to sell a house in a buyer’s market much faster. This also means you won’t have to worry about further delaying the home sale because the inspection found something’s wrong just before the closing date. If anything is wrong with your house, you’ll likely have to reduce its price, and you’re risking losing a buyer altogether. It’s very important to fix any visible damages, as well, to improve the appeal of the house. First impression is essential, especially when competition is high.
Making upgrades can increase the value of your house and attract buyers. Some upgrades are more expensive than the others, but you don’t have much choice if you want to make your property stand out. Research market well to know what upgrades are popular in your area. Maybe people love a bigger bathroom, or they’d love their house to have some smart home capabilities. Air conditioning is a must-have, so if your house lacks a good HVAC system, make sure to upgrade it, as well.
Improve the Curb Appeal
Your front yard is the most important feature of your property, as it is the first thing buyer’s will see. Improve the landscape by adding flower beds, mowing the lawn and cleaning your yard of debris. Clean the driveway and sidewalk, and repaint doors and window frames. Adding an attractive fence or a light fixtures can also make a huge difference.
Let’s face it. The determining factor for every sale is the price. If you set the price too high, no one will buy it, especially if they have plenty of other options available. On the other hand, when the price is too low, not only are you not profiting, but people won’t dare making a purchase, wondering what is wrong with the house.
Sell Your House to a Direct Buyer
If you need to sell a house in a buyer’s market but you don’t have the finances for the above tips, then your best option would be to sell your house fast to a direct buyer, such as Sparks Property Investors LLC. Direct buyers will buy your property as-is, so you don’t have to deal with all these repairs and expenses. As we live in the time of the COVID-19 pandemic, you will be happy to know that no traditional open houses and property showings have to be held. We are doing our best to keep everyone safe. Not only that, but we can close the sale fast, sometimes even just seven days from reaching the agreement! And we pay in cash, so there is no need to wait for bank to approve the payment.