Most of us have experienced a variety of real estate markets, from a buyer to a vendor’s market, to what many consider a normal and balanced market. Sometimes this happens over an extended period of time, and we often witness changes that happen without much notice. For example, in the last year or two, we’ve been through a strong seller’s market, where there were more qualified potential buyers than houses for sale on the market. After more than a year of steady increases in home prices, combined with little inventory on hand, we are seeing some cooling and a more balanced situation. Many factors are involved, including: perceptions (buyer and seller); local area; general economy, local economy; interest rates and availability of mortgage funds, etc. With that in mind, this article will attempt to consider, examine, review, and briefly discuss some recommended marketing strategies for a variety of circumstances and conditions.
1. vendors Market: When the inventory of homes for sale is extremely limited and conditions are such that many qualified buyers are looking for a home, there are two possible strategies that may be most effective. One, which we see more frequently, is to set the price of the house, in the higher range, believing that the number of buyers will bring a higher price. Another possibility, especially for a homeowner, who wants to market/sell his house, in the shortest period possible, is to price the house at the low end of the real estate market. When this strategy is used, it often brings much more views and Values, and we often witness a bidding war. I did this with a client of mine, during this recent market, and received 22 above-listing offers in the first weekend, and the house sold, for more than fifteen percent, above the listing price. Sellers should interview potential agents and discuss marketing strategies and what might work best for a specific property!
two. buyers Market: When there is more inventory than qualified buyers, we often witness a buyer’s market. Obviously, in these circumstances, the best approach is to conservatively use competitive market analysis to determine the listing price. Remember, in most cases, the best deals come in the first few weeks after it’s been listed, so those who price the house too aggressively often suffer. Put a price on the house, well, from the beginning!
3. Balanced Market: When neither side experiences a significant advantage over the other, we see a balanced market. In these cases, smart pricing and accentuating a property’s strengths against the competition in the local area is a must for success.
A smart homeowner interviews potential agents and hires the one with the vision and understanding to use a strategy that works best for the particular property. Given that, for most, their home represents their single largest financial asset, doesn’t that make sense?