These gimmicks get larger with the various housing and real estate market profiles.
(I drew that – don’t make fun)
As can be gleaned by the advanced scribble, less has to be offered in the way of buyer incentives in a seller’s market.
A Sellers Real Estate Market
A seller’s market typically is one that has lacking real estate inventory. It’s also the type of real estate market where there is a high buyer demand. There is little in the way of competition in a sellers real estate market and the sellers are more apt not to give credits, discounts or repair items the buyers are requesting.
A Buyers real estate Market
This type of market, looking back to the less than complicated real estate graph, has “MORE” with an up arrow showing that more incentives are usually offered when the local homebuyers have control of the ball. (football reference, or soccer, or basketball – depending on your poison)
A home buyers market is one where there are varying types of housing inventory. You will have new homes sitting, having been built, just waiting for the buyers to make an offer, where full asking price won’t be necessary. (BTW, for new homes – you are allowed to take your own agent to be on your side. You don’t pay them, the new home builder does at no cost (zero cost) to you!) – take advantage of that when considering new housing. You don’t have one – call me 661.400.1720)
In a real estate buyers market, there is also a build-up of real estate resale inventory that is acclimating days on the market like they are badges of courage. Lots more escrows are canceled during the home buying process and sellers are most likely to give the home buyers incentives in the forms of credits, discounts, to new cars.
Back in the day, before my start in real estate – back in 1998, there were programs where home sellers would carry part of the loan to help ease the higher than now interest rates. Those types of incentives don’t need to happen in a home seller’s market – but in a home buyers market, there are prevalent.
The 1 – 2 switch-a-roo
Sometimes, to be extra special, a home seller will offer advantages in a home buyers market. Especially if the housing is of a price point where those “types” are not flying off of the shelves.
This is very market dependent. For example – in the Santa Clarita Valley – Valencia City area, if you are a home seller wanting to sell a 3 bedroom home between 500 and 600k – I will have multiple offers on that home within hours of it hitting the market. We will be in escrow the very same day, depending on your availability and our “agreed to” strategy, and I will have sold your home at higher than the past price points.
That is what I bring to the table, I’m not being overconfident.
The very same market – Santa Clarita – Valencia CA homes over $800,000 to 3.5 million are going to take a little longer to sell. Shorter time frames than if we were in a home buyers market, but homes in these price ranges tend to stick around a bit longer. Offering incentives on a home such as these in these price ranges may be of benefit to a home seller. At least the discussion is worthy of having so you are informed.
At the end of the day, the “incentives” should sweeten the deal, not be used as a trick or rouse. Home buyers detest this as you, a home seller, would if someone was trying to take similar advantage.
The bottom line for developing any worthy real estate plan is to have a plan. Less than 1% of those in the world bother to write down their goals, specifically. Then re-visit that list daily, even multiple times a day and change what needs to be changed or check off the accomplished ones.
We do the same when encountering a home buyer and home seller. We want the plan to be written and executed by the numbers. I’m Connor MacIvor and I am here to help you with your own real estate game plan. Reach out to me when ready and I’ll be there for you and yours.