Market conditions are like a weather report; they show you what to expect so you can make plans, pick your listing price and decide on your marketing strategy.
One thing is certain: Markets are either going up or they’re going down, so as conditions change, you need to know the long and short-term trends. If the market is heating up, you can ask a little more for your home. If it’s cooling off, you may need to lower your price to attract buyers.
So, how are buyers behaving? Are they making multiple offers and paying over list price? Or are they sitting on the sidelines, looking but not making offers? The answers tell you if you’re in a buyer’s or seller’s market.
A seller’s market is characterized by confident buyers, rising prices, short “days on market”, supply levels of less than six months on hand, and offers close to full price, at full price or above list price offers.
A buyer’s market is characterized by fearful buyers, longer “days on market,” inventory supply levels of six months or more, and low offers. To get buyers to come in from out of the storm, sellers must offer incentives such as seller-paid closing costs or throw in the refrigerator, washer, and dryer.
To find out where your market stands, go over the Comparable Market Analysis (CMA) that your Berkshire Hathaway HomeServices professional provides you. Using this knowledge, you can price your home to sell quickly, and for the most money possible.