A transitional market is the period of time between a seller’s and buyer’s market, so what do you do NOW as a home seller? We have been anticipating this market for some time now, but just didn’t know when it would come. Looks like it’s here.
First of all, why is this happening? Among other factors, higher interest rates, more inventory and less affordability are some factors to the why. We are currently seeing Active (For Sale) single family homes and townhouses/condos that have had price reductions to their asking or list price. For example, in San Mateo County, as of today, of the 776 Active single family homes, condos and townhouses, 170 have had asking or list prices reduced. So what can you do if your’e thinking of selling?
If the market is shifting from a seller’s market, you need to prepare to be more competitive. It is more important now than ever to have your real estate professional research the market, similar homes to yours, price it competitively and be really aggressive in the marketing. They must KNOW your neighborhood. Pricing your home correctly (as is almost always the case to do in ANY market) is the best way to attract the highest amount of qualified buyers. But what does it mean to price competitively?
The CMA (Comparable Market Analysis) is one of the tools Realtors use to find out the FMV or Fair Market Value of your home. This is important to know, since bank lenders use an appraiser to help evaluate the worth of a home, the value generated is considered to be the FMV. Please call me if you would like a CMA which will evaluate what your home can possibly sell for in this transitional market.
In many types of real estate markets, demand and supply pull strongly against each other, also, the condition of your home, amenities and exact location are major factors to the type and amount of prospective buyers that will be eventually attracted to your home. Thus, the CMA report showing the Fair Market Value, is a very good starting point to all parties involved.
Some Good and Bad(s)
Good: your home will still sell at fair market value, and may even sell for more, depending on how it looks to prospective buyers, massive amounts of marketing to both local and not local buyers/investors and making the right choices the first time it is up for sale, which I will be happy to discuss with you.
Bad: you will still sell your house, at market value, but you will not have the bidding wars which will bring the overall selling price up. If you need to purchase another home or investment, this can actually help you, since you will not have to compete in these same bidding wars. Sounds like this is an actual “Good” and not a “Bad.”
Overall, it looks like this market will be good for sellers who have realistic expectations, and will now be able to pick and choose the right next home to live in or for investment. More than ever, it is extremely important to have the right professional, experienced Realtor to help you out and not just somebody that promises you the “Final Selling” price which may never happen or discount brokerages which also promise the same thing, but aren’t willing to put the work in to get it done. Give me a call today at 650 483-4932 to get you going in this “Transitional Market” and receive your CRM.