It's A Sellers Market
It's a sellers market when the amount of homes on the market is low and days on market (DOM) is low. This can mean bidding wars and homes selling for well over the asking price... a seller's dream. It's a sellers market when the DOM is less than 6 months. The less the DOM, the stronger the seller's market.
The benefit for sellers can be extremely advantageous. If interest rates are low and banks are lending, demand goes up even more creating a buying frenzy, a situation that's fun for sellers and frustrating for buyers. This occurs due to low real estate inventory.
With historically low DOM in 2021 in the Stuart, FL area, sellers are able to name their price so to speak. With a median time to contract being 9 days, seller's barely have time to get photos completed before qualified buyers begin making offers. The key is in pricing your house to sell with a market value listing price.
It's a great time to sell when the lack of supply of homes gets extreme. The more the supply diminishes, the higher the sale price. This is a basic supply and demand scenario.
Surviving a Sellers Market If You're Buying
If you're hunting for a home in a market where inventory is low, there can often be a bidding war for properties in your price range. Follow these tips to maximize the chance you'll close.
1. Treat your hunt seriously
House hunting must be your priority, not your weekend hobby. Check new listings regularly, be prepared to drop everything to view a home when it hits the market and be ready to make a quick decision.
2. Bring paperwork, not promises
Want to be taken seriously by the seller? When you visit homes, bring a mortgage pre-approval letter and a proof of funds form from your bank showing you have enough to cover the down payment.
3. Consider waiving what-ifs
Home buyers often include contingencies when making an offer so they won't lose their deposit if, for example, the home doesn't pass inspection. Waiving contingencies could help you close a deal, but this definitely is not a move for the faint-hearted. To gauge your risks, consult your Realtor.
4. Don't play hardball
This isn't the time to try to low-ball on price. Bid aggressively while keeping within the parameters you've set for purchasing.
5. Broaden your search
You'll increase your chances of finding a property if you're willing to consider homes outside your ideal neighborhood and houses that may need some remodeling or renovations.
Now you know it's a sellers market when DOM is less than 6 months. Know the market you're in before listing or buying. Knowing the market helps you achieve your real estate goals to obtain the best value for you!
For more information on this and other topics, contact Treasure Coast Insider Blogger, Mona Leonard at