Local inventory refers to the number of active listings in a particular geographic area at one time. Inventory is calculated and reported at the end of each month, but the actual number of properties available may be higher or lower on any given day since houses are listed and sold throughout the month.
What to Expect in a Seller’s Market
If there are more interested buyers than properties available, an area is in a seller’s market. If you list your home in that type of environment, you may receive multiple offers and may be able to negotiate a sale price above your asking price. A buyer who is eager to move into your area may be interested in your home even if it needs significant repairs or upgrades.
It’s important to price your house reasonably, though. If you list your home for more than it’s worth given its condition, location and other factors, buyers may not be willing to pay that amount. Even if someone agrees to pay your list price, a lender won’t approve a mortgage if the sale price doesn’t line up with your home’s appraised value. In that case, you may have to accept a lower price to salvage the deal.
In a seller’s market, the process may move quickly. You may receive multiple offers from buyers who are eager to move in as soon as possible. Keep that in mind and think about where you will live between the time when your current home is sold and the date when you move into your new house.
How to Sell in a Buyer’s Market
In a buyer’s market, there are more active listings than people interested in purchasing a home. If you decide to sell your house under those circumstances, it may be more challenging to attract a buyer and get the price you want.
Staging and marketing are always important, but especially in a buyer’s market. Your home will have to be clean and attractive to appeal to buyers, and it will have to be well advertised to garner attention. Professional photos and videos can help your property stand out. Your agent can list your home on the MLS and real estate websites that are likely to draw in prospective buyers.
In a buyer’s market, it’s important to price your home competitively, but that doesn’t mean you should set the price unreasonably low. If you do, you may walk away with far less than you could have gotten.
It may take longer than average to sell your home in a buyer’s market. Your home may sell for less than a comparable house in the same area sold for just a few months earlier.
If you have to sell right away, you may have no choice but to list your home and hope for the best. If you have more flexibility, you may want to hold off and wait for market conditions to change so you can get a higher price.