Understanding the Terms: Hot Market. Seller’s Market. Buyer’s Market.
Selling in a hot market like the current one we are experiencing; a faster sale at or above the asking price is typical with most properties receiving at least one or more multiple high offers within an hour or less of the listing going live.
A seller’s market means that demand is exceeding supply, as is the case right now. Sellers are able to raise prices knowing that there is adequate interest to meet the asking price.
On the other hand, a buyer’s market occurs when supply exceeds demand resulting in lower real estate prices due to the fact that there are more houses on the market than there are buyers.
Supply Always Meets Demand
The reality is, supply always meets demand simply because life goes on. Eventually, property developments and new home construction will commence and/or continue. Also, other homeowners will make the decision to sell for a wide variety of reasons.
Because property moves in cycles, waiting even just a few weeks could equate to both an increase in competition and a potential decrease in the chances of a hot market record price for your home as even more homes come onto the market. Deciding to wait it out means that you may indeed miss the opportunity and advantages of selling in a hot market.
The Importance of Quality
Keep in mind that very few buyers, if any, will accept either sub-standard housing quality or undesirable terms and conditions, without some form of financial compensation. Selling in a hot market, with record soaring prices and fierce competition amongst buyers, there is generally a high expectation that the property is sound. Although there is absolutely nothing wrong with properties coming onto the market needing some work, putting a well-presented home with nothing needed is a better option for sure— and will usually get a higher price.
Hot Market Seller Upper Hand
No doubt, price is always important, but multiple offers mean you have the upper hand. You are able to say no to certain buyer demands, focussing instead on those offers with higher deposits and/or terms that better suit your needs.
Of course, in a buyer’s market, the opposite is true whereby you have no choice but to meet most, if not all of their demands.
Selling in a Hot Market Means Increased Certainty
How long will the hot market last? Nobody really knows. Since there is no crystal ball to forecast what will happen to the market in the upcoming months; you are definitely better off selling in a hot market since there is an increased level of certainty. If you are seriously thinking of selling, now may indeed be the best time as consumer confidence is strong, low-interest rates are still readily available, and strong demand to buy in the Fraser Coast Hervey Bay area.
Say Goodbye to the Easy Money!
Mortgage lending rates are forecast to rise as the Aussie dollar falls due to overseas stimulus packages, and the US dollar is climbing. Higher local inflation will put additional pressure on financial markets and the Reserve Bank to increase interest rates which will affect demand as there will be fewer homebuyers in the market.
Choosing the Right Agent
It’s not always easy knowing which agent is the right agent to list your property with. Many sellers opt to go with the most recognizable real estate agency by default, but if you do a little extra research and know the right questions to ask when evaluating real estate agents, you’ll be confident that the agent has an in-depth knowledge of your market as well as a solid track record. You may also like to read this blog post on Attracting The Highest Market Price For Your Property