What is a sellers market and what does this mean for you?
Most of us are aware that the current market climate is strong for anyone wanting to sell their property, but what does it really mean?
What do you need to know about selling in a “seller’s market” in SW Florida?
What Is a Sellers Market?
As anyone could guess, a seller’s market identifies the seller as having strength in the real estate transaction.
During a seller’s market, it’s more likely that a seller will receive multiple offers on their home. It’s also likely that the property will not be on the market long.
Okay, but what else do you need to know as you prepare to sell your SW Florida home?
First, let’s look at the stats:
SW Florida Home Values
According to a recent Home Sales Repot report by the National Association of Realtors (NAR), average sale price of existing homes in the south have increased by approximately $10k per month between January 2022 and April 2022.
That’s a huge increase!
This, of course, points toward individual home values rising.
Note: A quick check-in with Zillow by typing in your address will likely prove this out to you.
SW Florida Inventory
Values rising but low inventory means less properties hitting the market, which again gives sellers a vantage point. It strengthens the likelihood of bidding wars as well as the likelihood of serious buyers putting in their highest and best offer. Another reason why it’s called a sellers market.
SW Florida Mortgage Rates
According to Freddie Mac (reported on April 28, 2022), today’s 30 year fixed rate mortgage (FRM) is averaged 5.10 percent. In comparison, the average 30 year FRM just one year ago was 2.98 percent. With the uncertainty of whether mortgage rates will continue to climb or not, buyers are motivated to act quickly to lock in the property as well as the mortgage rate.
3 Things To Consider in a Sellers Market
With all of this working in the seller’s favor, what could go wrong?
Here are three things to consider:
Setting Your Selling Price
Hire a seasoned REALTOR®. You’re going to need a professional who can provide you with the correct selling price for your home, based on area comps.
Most buyers are taking out a mortgage and your home will need to appraise close to the agreed upon price in order to avoid potential problems with the sale, or ultimately, the entire deal falling through.
Have Your New Home Purchase In the Works
Unless you are selling a second home or an investment property, it’s likely you’ll be looking for a new home as you put your existing home on the market. This can be a stressful endeavor!
Whether you are downsizing or moving on to a larger home or more desirable location, it is very possible to complete both deals very close together, so no one has to live in a hotel or with relatives after they sell their home!
I’ve helped numerous clients complete a home sale and purchase in the same window of time. Working with a team of industry professionals ensures that my client’s transactions remain on a timeline and are as smooth as possible!
Remember How a Buyer Thinks – Especially in a Sellers Market
Even in a seller’s market, it’s vitally important for you to put your best foot forward in your home sale journey.
Selling within the first week to 30 days of your house being put on the market is critical to receiving the highest and best price for your property.
This is where things like overvaluing the original selling price and the home not appraising near that number can hurt you if the original offer falls through because of this. Time is wasted, days or weeks pass and the property has to be put back on the market. The longer a home is on the market, the more likely it is for a buyer’s natural tendency to wonder, “What’s wrong with this property?”
Even in a seller’s market, this can cost you thousands of dollars in potential profit.
Again, another reason why I strongly suggest hiring an experienced REALTOR®.
There are pros and cons for every decision and as a home buyer or seller, it’s important for you to have the right information and the right strategy.
If you’d like to talk about home buying or selling, I’m here for you!
Shelby Tompkins, Realtor®
Schooner Bay Realty
239-464-2278
